Dubai Secures Global No.1 Spot In Greenfield FDI Projects Attraction For Third Year

Dubai has once again solidified its position as the world's leading hub for foreign direct investment (FDI). According to data from the Financial Times Ltd's "fDi Markets," Dubai ranked No.1 globally in attracting Greenfield FDI projects in 2023, marking the third consecutive year it has achieved feat. The city also claimed the top spot globally in key sectors such as consumer goods, energy, e-commerce, and tourism when it came to attracting Greenfield FDI projects, FDI capital, and job creation.

These impressive rankings align with the ambitious goals of the Dubai Economic Agenda D33, which was launched in early 2023 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The agenda aims to double the size of Dubai's economy by 2033, and the global FDI performance highlights the city's robust economic growth and attractiveness to international investors.

In 2023, Dubai welcomed a total of 1,070 global Greenfield FDI projects, surpassing second-placed Singapore by 142% and third-placed London by 148%. Over the past five years, Dubai's global share in attracting such projects has more than tripled, increasing from 1.7% in 2019 to 6% in 2023.

Dubai's appeal as a headquarters destination was also evident, as the city claimed the top spot globally for HQ FDI projects for the second consecutive year, attracting 60 projects in 2023. Singapore and London followed closely in second and third place, with 40 and 31 HQ FDI projects, respectively. Overall, Dubai ranked fourth globally in terms of jobs created through inward FDI, moving up from fifth place in 2022. Additionally, the city ranked fifth globally in Greenfield FDI capital attraction, climbing two spots from seventh position.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, expressed his satisfaction with Dubai's achievements, stating that the city's ability to secure the No.1 ranking in global Greenfield FDI projects for the third consecutive year demonstrates its ability to generate new opportunities for global businesses. He emphasized that the growing FDI inflows support the objective of the Dubai Economic Agenda D33, which aims to double the size of Dubai's economy by 2033.Dubai's stability, cutting-edge infrastructure, and dynamic business environment have made it a focal point for investment, enterprise, and talent. The city's stature as a leading global investment destination reflects its robust economic fundamentals, strong ethos of partnerships, and innovative initiatives to drive growth and innovation across various sectors.

Helal Saeed Almarri, Director-General of Dubai Department of Economy and Tourism (DET), attributed Dubai's sustained leadership in global FDI to the visionary guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum. He emphasized the successful collaborations with stakeholders and international partners, which have affirmed Dubai's status as a premier global hub for high-quality foreign direct investment. Almarri highlighted the enduring confidence of investors, multinational corporations, startups, and global talent in Dubai's robust investment and business climate. He stated that Dubai remains committed to bolstering its global competitiveness and business ecosystem, creating a fertile environment for sustainable growth. The city aims to provide unparalleled opportunities in the global economic landscape, becoming an essential destination for emerging businesses, investment, and talent, as well as a vital expansion hub for global corporations.

Hadi Badri, CEO of Dubai Economic Development Corporation (DEDC), noted that Dubai has created a stable and sustainable environment for international investment. He stated that the results from 2023 align with the objectives set out by Dubai's visionary leadership in the D33 Agenda. Badri highlighted the surge of talent coming into Dubai across various key sectors and the significant job creation through FDI, which has solidified Dubai's status as an attractive destination for skilled professionals. He emphasized that the No.1 ranking in attracting headquarters FDI projects has further strengthened Dubai's appeal for multinational corporations. Badri emphasized the commitment of Dubai's public and private sectors to attract new global companies and support them in expanding their geographical footprint and innovating their business models within Dubai.

According to data from the "Dubai FDI Monitor", a total of 1,650 announced FDI projects were recorded in Dubai in 2023, representing a 39% growth compared to the 1,188 FDI projects in 2022. These projects included Greenfield FDI, new forms of investments (NFIs), mergers and acquisitions (M&A), reinvestments, venture capital (VC)-backed FDI, and Greenfield joint ventures. The data also revealed a significant increase in job creation through FDI in Dubai, with a 15.5% year-on-year growth and a total of 44,771 estimated jobs. Retail, business services, headquarters, sales, marketing support, and manufacturing were the key sectors driving this growth.Greenfield FDI wholly-owned projects saw a slight percentage increase in 2023 compared to the previous year, while New Forms of Investments experienced a notable rise from 25.2% in 2022 to 31.4% in 2023. In the technology sector, high and medium-tech projects accounted for 58% of the FDI projects in Dubai in 2023, based on the share of total FDI.

Dubai maintained its position as the top city destination globally for several key technologies, including artificial intelligence (AI), FinTech, cloud computing, and cybersecurity. The city also ranked first in terms of the estimated number of jobs created by e-commerce investments.The global foreign direct investment (FDI) flows in 2023, according to UN Trade & Development, were estimated at around US$1.37 trillion, showing a 3% increase over 2022. However, excluding a few large European deals, global FDI flows were 18% lower. In line with global trends, Dubai attracted an estimated Dh39.26 billion ($10.69 billion) in total FDI capital during 2023.

The top five source countries by FDI capital into Dubai in 2023 accounted for 66.6% of the total estimated flows, while the top five source countries for FDI projects accounted for almost 55.7 percent. Canada featured in the top five source countries for FDI capital due to a significant M&A deal involving Canada-based Brookfield Business Partners acquiring Network International for US$2.76 billion.

The top five sectors accounted for 67.6% of the total estimated FDI capital flows into Dubai in 2023 and 69.3 percent of total announced FDI projects. The financial services sector attracted the most FDI capital, followed by business services, consumer products, software and IT services, and textiles. In terms of FDI projects, business services, food and beverages, software and IT services, consumer products, and textiles were the top sectors.

Dubai's FDI performance in 2023 highlights its attractiveness as a global investment destination across various sectors. The city's stability, advanced infrastructure, and business-friendly environment continue to draw investors and businesses from around the world. With its strategic advantages and commitment to fostering growth and innovation, Dubai is poised to provide unparalleled opportunities for emerging businesses, investments, and talent. The city's achievements in FDI are a testament to its robust economic fundamentals and its status as a premier global hub for high-quality foreign direct investment.