(MENAFN - Khaleej Times) Signalling the strong resurgence of investor confidence in Dubai's economic growth, foreign direct investment, or FDI, to the emirate recorded a seven per cent jump in the first half of this year.
Dubai FDI, the foreign investment office at the Department of Economic Development, said on Sunday the emirate drew Dh16.5 billion in FDI during the first six months of 2012.
Statistics compiled by Dubai FDI showed that during the first half, 113 companies initiated 115 FDI projects. January saw the highest average capital investment while the highest number of projects in a single month - 26 - was recorded in April 2012.
"Total FDI that flowed into Dubai during January-June 2012 was seven per cent up from the first half of 2011. The presence of larger projects is the most notable feature of the FDI inflow during the first half of 2012," Dubai FDI said in a statement.
In 2011, the UAE, which is giving final touches to a long expected foreign investment law, attracted more than Dh36.73 billion in foreign investment, emerging as a leading destination for FDI projects in the Middle East and Africa.
A total of 328 projects were launched, up 13 per cent from the previous year, data from FDI Intelligence shows.
According to United Nations Conference on Trade and Development, or Unctad, the UAE was the second top recipient of FDI in the Arab world at 75 billion in 10 years after Saudi Arabia at 154 billion.
Overall FDI trends during January-June 2012 reaffirm Dubai's pre-eminence as an investment destination of choice and reflect a growing confidence globally on the growth prospects across key sectors of the emirate's economy.
"More and more firms and investors worldwide are now convinced of the unique growth opportunities Dubai provides as a regional hub and business centre. The rise in number of multinationals relocating to Dubai and in FDI across key industry sectors in the emirate validate this," said Fahad Al Gergawi, chief executive officer of Dubai FDI.
"Dubai FDI is particularly proud to see such positive outcomes achieved by the government of Dubai as our focus is on comprehensively promoting business in Dubai and enabling investors to take advantage of Dubai's competitiveness," added Al Gergawi.
Similar to the first half of 2011, India, the US, the UK, Saudi Arabia, Qatar, Germany, Switzerland and France were on top among the source countries for FDI into Dubai in the first half of 2012. The top 10 countries accounted for 83 projects, or 72 per cent of the total, and their combined investment of Dhs15.5 billion was 94 per cent of the January-June 2012 FDI into Dubai. The UK and India accounted for 29 per cent of the FDI projects, mainly in business services.
"It is also noteworthy that a new breed of investors is finding Dubai the place to be. Dubai's world-class infrastructure, convenient links to the East as well as West and distinguished lifestyle is especially appealing for this generation of ambitious and innovative entrepreneurs," said Al Gergawi.
Almost 93.9 per cent of FDI projects initiated in Dubai during January-June 2012 are new investments, compared to 88 per cent in the first half of 2011. Moreover, almost 45 per cent of the projects came from companies that had not previously had a project recorded in Dubai.
Average capital investment in the new projects was Dh149 million, while average capital investment for expansion was Dhs56 million.
