What Makes The UAE The Region's Fastest-Growing Investment Destination?

From its strategic location at global crossroads and strong financial reserves and sovereign wealth funds to investment in major development and infrastructure projects, the UAE has been able to create a modern, dynamic and diverse economy in only 50 years. The UAE ranked first regionally and 9th globally in the Global Competitiveness Report 2021 issued by […]

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  • From its strategic location at global crossroads and strong financial reserves and sovereign wealth funds to investment in major development and infrastructure projects, the UAE has been able to create a modern, dynamic and diverse economy in only 50 years.

    The UAE ranked first regionally and 9th globally in the Global Competitiveness Report 2021 issued by the Global Competitiveness Center, and ranked first globally in 22 indicators. In a staggeringly short time, it has managed to redefine the limits of the possible.

    The priority for the next 50 years is to continue accelerating economic development and unlocking opportunity, especially by encouraging small and medium-sized enterprises and instilling a culture of entrepreneurship throughout the country.

    Global magnet for capital and talent

    One of the key pillars of the UAE’s ambitions is to attract FDI in key sectors, particularly those associated with the knowledge economy and advanced technologies. Artificial intelligence, the Internet of Things, Blockchain, innovative medical technologies, high-speed transportation, augmented virtual reality, robotics, self-driving cars and renewable energy are all fields in which the UAE wants to excel in the immediate term.

    Despite the UN’s figures that global foreign direct investment flows decreased by 42 per cent in 2020 over COVID-19, the UAE has seen 44 per cent growth in inward FDI flows in 2020, compared to 2019, to reach AED73 billion. The UAE ranked first in the Arab world and 15th globally in terms of its ability to attract foreign direct investment, according to the results of the Global Foreign Direct Investment Report for the year 2021 issued by the United Nations Conference on Trade and Development. It attracted FDI of $19.9 billion in 2020, a growth of 11.24 percent over 2019, despite the pandemic.

    Also Read: The UAE Government Launches Campaign to Help Entrepreneurs

    The forecast is healthy, with the flexibility and attractiveness of the UAE’s business environment, and the constant update of provisions and procedures to meet global standards, keeping the capital inflows coming.

    The UAE has undergone continuous transformation to create the ideal platform for economic success in a rapidly evolving world. In recent years, this has included investment in its digital infrastructure, which ranks first in the Arab world, and legislative changes to create the most competitive regulatory and procedural umbrella.

    The UAE has also become a global and regional headquarters for more than a quarter of the world’s 500 largest companies. It remains a primary investment destination for foreign capital, where the country’s major projects in tourism, industry, transport and renewable energy projects are principal targets. Today, the UAE is one of the most advanced countries in the world in creating a regulatory environment that protects the investor and supports commercial activity, providing a flexible and competitive legislative and procedural umbrella that helps stimulate foreign investment and ensures business stability.

    Projects of the 50

    As the UAE opens the chapter on the next 50 years, “Projects of the 50” sets in motion key initiatives that will determine the nation’s economic success, with a particular focus on developing a knowledge economy, fostering innovation, establishing stronger bilateral relations with international partners and continuously upgrading the legal frameworks to attract investment, ideas, entrepreneurs and highly skilled professionals from around the world.

    All these factors are highlighted by “Projects of the 50”, a comprehensive economic and developmental program to showcase the capabilities and international standards available in the UAE to investors, entrepreneurs and talents of different nationalities and in various economic sectors. Taken together, the UAE remains a base from which people everywhere can achieve their ambitions.

    Also Read: The UAE Government Launches Campaign to Help Entrepreneurs

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