HAMDAN: WORLD’S INVESTORS ARE DRAWN TO DUBAI

Foreign direct investment a quarter higher in 2018 to nearly Dh18 billion

Dubai’s work on diversifying its economy and making it easier and cheaper to do business is already paying off, with foreign investors pumping in 26 per cent more over the first six months of the year, compared with the same period in 2017.

In a sign that support for startups is also bolstering the emirate’s economy, foreign direct investment reached $4.84 billion (Dh17.76bn).

The number of projects to which foreign investors are contributing surged 40 per cent to 248 in the same period, the Dubai Investment Development Agency said.

“The rise in capital and projects reinforces Dubai’s leading position as the preferred global location for global businesses and start-ups pursuing growth and expansion, and clearly reflects investor confidence in Dubai’s economy,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.

The government has made steps to attract more foreign investment. The UAE has also announced plans to grant permanent residency under certain conditions, and issue 10-year visas to help attract more investors and entrepreneurs.

Jihad El Eit, founder and chief executive of the restaurant chain Man’oushe Street, said entrepreneurs and start-ups had seen the benefits of Dubai’s reforms.

“We believe it is much cheaper to start a business than three years ago and the investment environment is much better because of the cost of doing business,” Mr El Eit said.

“Today the government is making a lot of incentives for people to do business – things we haven’t seen before such as cancelling guarantees for labour insurance and supporting trade licences.”

Mona Ataya, founder and chief executive of Mumzworld, a Dubai online retailer for mother and baby products in the Middle East, said more companies were choosing the city as their base.

“Dubai’s location is perfect, at strategic arm’s lengths to East and West,” said Ms Ataya, whose company raised $20 million in its latest funding round. “Its outstanding location makes accessing suppliers, distributors and brands so easy.

“Dubai and the UAE are known to be a safe haven in the region, with the best security in place, making life easier for businesses and making it safer to attract talent from around the globe and from the region.

“Due to Dubai’s very strategic location and outstanding business environment, Mumzworld, has been able to grow and attract investment.”

She said that the “quality of life and diverse population” made it easier to hire and retain talented professionals.

Sami Al Qamzi, director general of the Department of Economic Development, said: “FDI flows in the first half of 2018 reaffirm the sustained growth of Dubai economy and the diversity, competitiveness and attractiveness of the emirate.”

Fahad Al Gergawi, chief executive of Dubai FDI, said he was “confident about the future prospects for enhancing FDI flows, especially after the issuance of new laws that enhance Dubai’s competitiveness as a preferred global destination for investment”.

He said new laws that allowed 100 per cent foreign ownership of companies and 10-year residency visas were key to attracting investors, professionals and top-performing students.