(MENAFN- Khaleej Times) Dubai FDI, the foreign investment office at the Department of Economic Development, or DED, is confident to sustain strong double-digit growth in foreign direct investment, or FDI, inflows to Dubai in the coming years due to its pragmatic approach to attract investors, its top official said.
The department posted 16.6 per cent increase in FDI facilitated into Dubai during 2012, as a comprehensive range of programmes and activities to highlight the emirate's growing prominence as a hub of trade and commerce continue to produce substantial outcomes.
"We will sustain a 10-15 per cent growth in FDI inflows to Dubai this year due to various initiatives taken by the department. The first quarter is very active and I hope the same trend will continue in rest of the year," Fahad Al Gergawi, chief executive officer of Dubai FDI, told Khaleej Times following the release of its 2012 performance report on Saturday.
He said the companies assisted by Dubai FDI and their partnership programmes in 2012 showed a total investment of Dh4.2 billion in Dubai, with a total impact of Dh18.3 billion on the emirate's economy.
"This is a 14.3 per cent year-on-year growth over last year's economic impact of Dh16 billion, while total investment inflows to emirate stood at Dh3.6 billion in 2011," he added.
Al Gergawi said Dubai FDI assisted 119 companies to set up their business in the emirate last year aside from helping 46 companies to grow and develop their existing investment in the emirate.
"This is a 114 per cent year-on-year growth on 2011, where the total number of companies assisted was 77 companies," he said.
Strategic advantages
Al Gergawi said a positive upward trend in FDI inflows to the emirate will continue in the coming years as the international community and financial institutions acknowledge the ease and strategic advantages of doing business in Dubai.
"Dubai has been able to remain top in terms of investor confidence and it is evident from steadily-rising FDI figures. For the discerning investor, Dubai is the best response to concerns on ease of doing business, operational efficiencies, convenient market access and sustainable growth," he said.
"Dubai's well-integrated multimodal logistics platform and quick connections to 2.2 billion consumers across the Middle East, North Africa and South Asia have emerged as significant drivers of global commerce as well as the emirate's economic development. The international community is also taking serious note of the leadership's commitment to push ahead with policy reforms, projects and reaching out to new markets."
Strong investor interest
Al Gergawi said Dubai FDI has noted strong interests from investors across the globe. "We expect robust investment inflows from Western Europe, Eastern Asia, Latin America and the Indian Sub-continent. The department has also seen strong interest from US investors in small and medium enterprises," he said.
"2013 is very important as a new economic cycle is beginning that will benefit the Dubai economy. We expect to deliver even much better results in 2014."
Al Gergawi said Dubai FDI will continue to increase its participation in international forums to highlight the emirate's investment potential.
"We are also increasing our partnership programmes to build up strong business relationship especially with multinational companies operating in Dubai," he said, adding that the department is solving problems of multinational companies on a priority basis.
Dubai FDI participated in 56 events in 2012, including 17 internationally, to build awareness among investors, trade bodies and governments on the strategic advantages of being in Dubai. Majority of the events in which Dubai FDI attended in 2012 were focused on investment potentials and sectors in which Dubai has outstanding competitiveness.
Dubai FDI also hosted 31 business and government delegations in 2012, introducing Dubai and its business environment to investors and decision-makers in a number of regions and countries including Scotland, Ireland, Edinburgh, Kenya, South Korea, the Commonwealth of Independent States, China, Japan, Spain, Romania and Indonesia.
The partnership network of Dubai FDI also expanded in 2012 as nine memoranda of understanding were signed with various consultancies, professional and trade associations and overseas marketing agencies. New partners who came on board in 2012 included The Business Year, Australia Gulf Council, Chartered Institute of Logistics, Brazilian Trade and Investment Promotion Agency, and Taylor Wessing.
"Our partner network plays a major role in building investor awareness; attract investors to Dubai and help develop their businesses. Dubai FDI seeks to provide a one-stop solution to investors, wherein we help them by eliminating obstacles, introducing them to new opportunities and try to retain those looking to exit the market. Last year we were able to provide business development, growth and retention advisory services to 77 companies," Al Gergawi concluded.
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