Dubai ranked first globally in attracting greenfield FDI projects in 2021, up from the third spot last year, according to the annual ‘DUBAI FDI Results & Rankings Highlights Report 2021’.
The report is based on data from the ‘fDi Markets,’ the world’s leading source of data on greenfield FDI projects.
The emirate attracted 418 greenfield FDI projects, Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said.
Dubai ranked first in the Middle East and North Africa region (MENA), and third globally, up from fourth place last year, in FDI capital inflows.
In Reinvestment FDI projects, Dubai ranked first in the MENA region and third globally (up from fourth place last year), and seventh globally, (up from eleventh-place last year), in FDI capital inflows.
As for FDI job creation, Dubai ranked first in the MENA region and fifth globally, up from the sixth-place last year.
The report revealed growth in all key FDI indicators compared to the previous year, where the estimated value of FDI capital flows into Dubai exceeded AED26 billion ($7 billion) from a total of 618 announced FDI projects in 2021, with a growth rate of 5.5 per cent compared to 2020.
Both FDI projects and FDI job creation witnessed a significant increase of 36 per cent in 2021 compared to 2020, with an estimated 24,868 jobs in 2021, compared to 18,325 jobs in the previous year.
Dubai attracted 43 Headquarters (HQ) FDI projects in 2021, leading regionally in this category and ranking second globally behind Singapore, surpassing major cities such as London and New York, in hosting global and regional headquarters of international companies.
The emirate also ranked third globally in terms of HQ FDI capital flows, which amounted to AED2.8 billion, according to data from ‘fDi Markets.
Sheikh Hamdan said, “Dubai has created a stable, sustainable economic environment and a vibrant business ecosystem for companies and entrepreneurs to launch new ventures, tap new opportunities and expand their business both in the country and beyond its borders.”
Dubai also ranked first in MENA and tenth globally in Global Venture Capital FDI Projects, according to the ‘Global Venture Capital FDI Ranking 2022’ report published by ‘fDi Intelligence’ based on data gathered during 2003-2021.
Data from ‘Dubai FDI Monitor,’ supported by MAGNiTT, revealed that 84 Dubai-based startups successfully attracted Venture Capital (VC) Backed FDI worth AED2.34 billion in 2021.
The ‘Dubai FDI Monitor’ data revealed that Greenfield FDI into Dubai amounted to 53 per cent of the total FDI projects recorded in 2021. New Forms of Investments (NFIs) followed, accounting for 19 per cent of the projects, followed by VC Backed FDI projects with 12 per cent, Reinvestment FDI projects with eight per cent, Mergers & Acquisitions projects with six per cent and Joint Ventures with two per cent. The High and Medium technology FDI projects witnessed a significant growth, reaching 67 per cent of the total FDI projects recorded in 2021, compared to 56 per cent in 2020, further highlighting Dubai’s leading position as a preferred destination for high-tech FDI projects and a global centre for specialized talent in the digital economy.
United Kingdom top FDI source
The ‘Dubai FDI Monitor’ data revealed the growth of FDI flows into Dubai from the United Kingdom, which became the leading source country with a 27 per cent share of the total FDI capital inflows in 2021, followed by the United States with 18 per cent, France 13 percent, Germany 11 per cent and India, 6 per cent.
As for FDI projects in 2021, the US maintained its lead among top FDI source countries with 19 per cent share of the total FDI projects, followed by the UK with 18 per cent, India 13 per cent, France six per cent and Germany, 5 per cent.
Accommodation, digital economy FDI magnets
The ‘Dubai FDI Monitor’ data revealed the growth of FDI inflows into advanced technology and the digital economy sectors. The Accommodation and Food services sector topped with 28 per cent share of total FDI capital flows into Dubai in 2021, followed by Residential Building Construction (15 per cent,) Electric Power Generation (10 per cent), Management of Companies & Enterprises (six per cent), and Data Processing, Hosting, & Related services (five per cent). As for FDI projects in 2021, Software Publishing led the top five sectors with 10 per cent share of the total, followed by Finance & Insurance (eight per cent), Accommodation & Food Services (seven per cent), Management of Companies & Enterprises (seven per cent), and Retail & Wholesale Trade (six percent).
FDI Global City of the Future
The ‘Global Cities for Future Foreign Direct Investment 2021/2022’ report, published by “fDi Intelligence” ranked Dubai among the top three cities globally.
Dubai’s FDI advantage was further emphasized with its second place ranking in the categories of “major cities that attract foreign direct investment” and “economic potential and a conducive environment for business.”