Global investors show confidence in Dubai as 'FDI hub'

Investors have shown confidence in Dubai, which is recuperating from a massive debt crisis, as an FDI hub for the wider Middle East and North African region, a survey said.

The Foreign Investment Office, which surveyed more than 1,000 global and regional investors, said 54 per cent of the respondents already have a presence in the city and an additional 16 per cent investors plan to enter Dubai in the next three years.

FIO, an agency of the Dubai Department of Economic Development, in its preliminary study report said global companies view Dubai as an essential part of their total value chain to access the attractive markets of the MENA region, while maintaining their most vital and strategic activities here.

Investors said Dubai has reached the next level of economic maturity and attractiveness. Their outlook is based on its ability to build a strong infrastructure as well as its prevailing business savvy approach and innovation.

"The confidence in Dubai as a hub for FDI to the MENA region and the positive growth outlook for the regional markets is encouraging. It highlights the Emirate's ability to rebound and become a world leading FDI destination for global investors, " FIO CEO Fahad Al Gergawi said.

The study, aimed at enhancing the competitiveness of Dubai's economy, stated the decade has brought dramatic growth in foreign direct investments into the Middle East.

FDI in the Gulf Cooperation Council region has surged from USD 3 billion in 2000 to USD 62 billion in 2008, according to the United Nations Conference on Trade and Development. Total inflow to the UAE was USD 21 billion in 2008, according to FDI intelligence.