Dubai Maintains Its Top Spot for Global FDI Projects in H1 2023

09 Oct, 2023

Dubai Maintains Its Top Spot for Global FDI Projects in H1 2023

A recent report reveals that Dubai has retained its prestigious status as the world's foremost destination for attracting greenfield foreign direct investment (FDI) projects during the first half of this year. Despite global economic challenges, Dubai solidified its position as a global FDI hub.

During this period, the emirate, renowned as the Middle East's hub for tourism and commerce, welcomed an impressive 511 greenfield projects. This number far surpassed the second-placed Singapore by a margin of 325 projects, according to data from Financial Times fDi Markets, as reported by the Dubai Media Office.

Dubai's global share in attracting greenfield FDI projects reached 6.58% in H1 2023, a significant rise from 3.83% during the same period the previous year. The emirate saw a remarkable year-on-year growth of 70%, attracting a total of 880 announced FDI projects between January and June.

Notably, Dubai's greenfield FDI projects constituted 65% of the total announced FDI projects during this period. Additionally, Dubai climbed from the eighth to the sixth position worldwide in greenfield FDI capital attraction, welcoming an inflow of Dh20.87 billion ($5.68 billion) in the first half of the year, as per Financial Times fDi Markets data.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council, remarked on Dubai's ability to maintain its top rank in attracting greenfield FDI projects. He emphasized the city's dedication to creating growth opportunities and value for global investors, mentioning the Dubai Economic Agenda D33 as a roadmap for continued transformation and investment.

Dubai's economy rebounded strongly from the slowdown induced by the COVID-19 pandemic in 2020. Robust growth in the travel and tourism as well as retail sectors has been pivotal to the emirate's GDP, which recorded an annual increase of 2.8% in the first quarter, reaching Dh111.3 billion ($30.3 billion).

The emirate's economy expanded by 4.4% in the previous year and is projected to grow by 3.5% in 2023, according to Emirates NBD. Dubai's trade sector contributed positively, growing by 1.2% in the first three months of this year, injecting Dh25.5 billion into the economy.

Dubai's non-oil private sector also displayed robust growth in August, marked by increased new orders and the highest pace of job creation in approximately eight years, as indicated by the S&P Global Purchasing Managers' Index.

In terms of employment creation from FDI projects, Dubai surged from ninth place in H1 2022 to fourth globally in H1 2023, according to fDi Markets data.