UAE - The Favourite Destination of FDI (Foreign Direct Investment)
The United Arab Emirates (UAE) has been in recent times recognized as the world’s investment destination. As per the information published in World Investment Report 2017 released by the United Nation’s conference on Trade and Development (UNCTAD)
UAE is ranked 12th in the list of countries ranked on basis of preferred jurisdiction for foreign direct investment (FDI) during 2017 to 2019. In accordance with a statement made by senior official from Ministry of Economy of UAE the FDI in UAE grew by 2.2% in the year 2016 amounting an inflow of USD 9 Billion in 2016 in comparison to USD 8.8 Billion in 2015.
It is important to mention here that Foreign Direct Investment (FDI) is one of the key determinant for sustainable economic development in the country. The cash inflows support Governments initiatives and development projects. In relation to the situation of the economic scenario around the world, there is a decline in FDI but UAE is an exception with 2.2% growth in FDI in 2016 in comparison to 2015. The official from Ministry of Economy of UAE also indicated that UNCTAD sets a threshold limit of minimum 10% equity ownership of an investor to qualify as FDI and accordingly, if the persons with less than 10% equity shareholding will be considered, the total FDI shall be more than USD 9 billion.
He further added that with UAE’s strong economic presence and less dependability on oil, FDI in the country is to expected to continue the trend which shall support the country’s mega development projects in various heavy industries and petrochemicals.
UAE is second most favored country in West Asia by FDI’s after Turkey and the top in the GCC with an estimated 50.2% of total FDI in the GCC being invested in UAE alone. UAE offers a business-friendly environment with a stable political and economic situation. The legislations in the country are also one of the most systemized and investor friendly in the entire region. The robust infrastructure facilities woo the investors from around the globe for business setup in UAE.
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