Dubai’s State of Foreign Investments

In the past Abu Dhabi depended on Dubai as a re-export hub. After Dubai’s oil was discovered, the city developed into a top-notch and luxury destination as well as one of the top business hubs in the world.

The once desert-like area is now over-flowing with luxury hotels, impressive skyscrapers and state-of-the-art shopping malls. Dubai is now considered as one of the top urban jurisdictions in the world and a city that continuously expands and develops.

Even before Dubai discovered its oil in 1966, it was a leading trade hub within the Middle East as well as amongst a variety of  European countries. Dubai’s city life developed immensely after its oil fields were uncovered. Dubai produces more than 65 million barrels of oil annually. Once Dubai’s International Finance Center was launched in 2002, globally recognized financial institutions including Standard Chartered, Credit Suisse, HSBC as well as Citibank set up branches.

General Outline

Based on a study conducted by Dubai-based investment firm, FDI, the emirate attracted more than $7.5 billion worth of foreign direct investment in 2014. Almost 80% of foreign investment was attributed to tourism, information technology, business management, renewable energy, real estate and financial services industries.

Foreign investors from all over the world including Germany, India, Italy, the UK, the Netherlands as well as the USA invested approximately Dhs23.9 billion in 2014. The aforementioned countries comprised approximately 84% of the total 2014 FDI and nearly 60% of projects. It is estimated investments will increase significantly by Dubai Expo 2020, as the event is considered to be one of the most prestigious and prominent exhibitions.

Furthermore, Dubai is viewed as the ideal jurisdiction to do business due to its simple business procedures as well as business-friendly environment.  For the purpose of attracting more investors to the UAE, Dubai FDI teamed up with SHARJAH Investment and Development Authority.

Finally, the most recent A. T Kearney Global Foreign Direct Investment Confidence Index ranked Dubai 14^th internationally. The index measures the present and potentially future foreign direct investments.

Dubai and Investments:

Dubai is internationally renowned as being an investment haven! Investors are presented with endless investment options including infrastructure.

Furthermore, the emirate’s Dubai International Airport is not only considered the fastest growing airport in the world but it has also been ranked as the sixth busiest international airport. Dubai’s airport handled 41 million passengers in 2009. Well above one-hundred international airlines fly to Dubai. leading airlines including United Airlines, British Airways, KLM, Lufthansa, Singapore Airlines as well as the UAE’s local Emirates are some of the airports top air carriers.

Dubai is also home to the world’s largest and busiest man-made port, Jebel Ali Port. The port caters to more than 240 shipping lines recording 19% growth rate. Additionally, Dubai is also home to a variety of Free Trade Zones where each operates within particular industries, infrastructure as well as tax incentives. Some of these include Biotechnology and Research, Media and Technology, Healthcare, Textiles and Logistics, Education, Dubai Free Zones and Outsource Zones as well as Financial Services and Commodities.

Dubai’s Free Zones offer businesses spacious office spaces, warehouses, factories and simple procedures when it comes to obtaining licenses. Dubai Metro is one of the most advanced railways in the world, which run with automatic trains. The metro system links popular tourist destinations, shopping malls and the airport.

 Tourism is another popular industry that attracts investors. During 2014, 11.12 million tourists holidayed in the emirate. In 2013, 10.16 million tourists visited the city. Dubai’s hospitality and tourism industry contributes to 20% of its Gross Domestic Product (GDP).

Dubai’s trade and investment data reveal it is a top jurisdiction for investments as well. During the first three financial quarters of 2014, Dubai’s non-oil based foreign trade generated DH988 billion out of which Dh621 billion, Dh86 billion and Dh86 billion were attributed to imports, exports and re-exports respectively.

Out of one-hundred and sixty countries, Dubai was ranked as the 15^th best location to enjoy quality of life and the first throughout the MENA.

Obviously, based on the above information and statistics, Dubai is considered as the ideal jurisdiction to invest and attract foreign investments. Although, some may under-rate the emirate at the present, Dubai is destined to develop into a world-class city in the near future.