14 Jun, 2017
The FDI, influxes into the UAE grew by 2.2 % from $8.8 billion in 2015 to US$9 billion in 2016, according to the World Investment Report 2017 released by UN Conference on Trade and Development, UNCTAD, where the United Arab Emirates is ranked 12th on the list of top countries for Foreign Direct Investment (FDI) for the period from 2017 through 2019, Minister of Economy, has revealed.
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"The country is developing well thought-out schemes in line with the National Plan of the UAE Vision 2021 by aligning efforts and confirming synergies across all sectors at the federal and local levels in alignment with the directives of our wise leadership," the minister added.
Foreign Direct Investment (FDI) is considered a key enabler for supportable economic growth on account of its significant role in ensuring money inflows for mega-sized growing projects and Despite the decline in global FDI rates in 2016 comparatively with 2015, the overseas investment inflows to the country, according to the information, increased by 2.2 percent to $9 billion against $8.8 billion in 2015, he added.
UN Conference on Trade and Development UNCTAD criteria for assessing Foreign Direct Investment (FDI) sets a threshold of 10 percent of equity ownership to qualify an investor as a foreign direct investor, said the minister, observing that there are myriad foreign investments in the country below this 10 percent equity ownership and that’s why if these investments are calculated, the total Foreign Direct Investment (FDI) in the country would go beyond the $9 billion mark.
He estimated more FDIs to the country over the coming five years as a straight result of the big projects launched in areas of renewable energy and retail industries, trades, adding that the cumulative FDIs to the United Arab Emirates jumped to $117.9 billion by the end of 2016 from $109 billion by the end of 2015, a growth of 8.2 percent supported by growing investments in areas of transformational and other heavy industries, plus aluminum and petrochemicals, in addition to other sectors, like tourism and aviation.
United Arab Emirates -bound Foreign Direct Investment until the end of 2016 accounted for 16.9 percent of total FDI to Western Asian nations, with United Arab Emirates claiming 26.5 percent of total FDI to GCC by the end of 2016.
The United Arab Emirates came second only to Turkey on the list of top countries attracting FDI in West Asia, accounting for 32.3 percent of total FDIs coming to the region during 2016, which are likely at $27.8 billion, he stated, addition that the United Arab Emirates comes on top of GCC states on the same list, claiming 50.2 percent of the total FDI, estimated at $17.9 billion during the same year.