DUBAI FDI · PDF fileThe Dubai FDI Monitor report classifies FDI projects on technology level based on the ... FDI Project announcements are qualified through public information or

20171Q

TRENDS REPORT

DUBAI FDI MONITORمرصد دبي لالستثمار

Context and ApproachDUBAI FDI Trends Analysis Report is a first of its kind, utilizing qualified and verified data to review FDI performance quarterly in the Emirate of Dubai. The report details the total capital invested as well as the number of projects by sector and country.

DUBAI FDI MONITOR Trends Analysis Report takes into consideration that quarterly flows and public announcements are subject to revisions and can fluctuate from quarter to quarter. The following trends are based on FT fDi Markets data, and DUBAI FDI MONITOR’s qualified and verified data to provide an accurate analysis and insight on FDI flow trends at the time of publishing this report.

Looking at foreign direct investment more broadly, foreign companies invest in Dubai for many reasons that cover a wide spectrum of both soft and hard infrastructures. Factors such as quality of life, education, healthcare, services and pro-business regulations and government continue to be positive reasons for investment decisions.

The DUBAI FDI Trends Analysis Report is oriented towards the strategic reasons that make Dubai a leading FDI destination globally as highlighted below:

The CityDubai’s opportunities for growth, partnership and innovation

The GatewayDubai’s advantage as a gateway to regional markets

The Global HubDubai’s role as a global platform for trade and investment


dubaifdi.gov.ae DubaiFDI2

FDI Capital Inflows into Dubai

Global inward Foreign Direct Investment (FDI) continues decline, down 33% quarter on quarter. While Dubai’s FDI grew by 8.4% grabbing the 9th position globally for total capital. Despite global dynamics and uncertainties which are leading to delayed expansion plans by investors deploying capital, investor’s in Dubai are optimistic about the strategies being implemented and the resulting opportunities.

4.77AED Billion

9Global

Ranking

th

Trends


Source : Financial Times - fDi Markets Data


Despite a decrease in projects quarter on quarter Dubai ranks to the 2nd position globally for total projects attracted in Q1 2017. Dubai continues to be an attractive destination for service oriented firms looking to serve the GCC and wider region. A total of 84 FDI projects were validated by Dubai FDI Monitor.

*New Forms of Investment (NFI)Foreign companies may choose New Forms of Investment (NFIs) and non-equity modes for market entry. Although data tracked remains very limited at this stage, NFIs in Dubai reflect the economic maturity of the domestic economic base. As more small and mid-sized companies grow, they create momentum for NFIs such as : Joint Ventures, strategic partnerships , alliances, sub-contracting, license arrangements and Mergers & Acquisitions.

Trends

FDI Projects

Greenfield Reinvestment *NFI

TYPE OF INVESTMENT PROJECTS

Total84

FDI Projects

2Global

Ranking

nd

95.2% 3.6% 1.2%


Source : Financial Times - fDi Markets Data


TrendsThe Dubai FDI Monitor report classifies FDI projects on a strategic level based on turnover, size of investment and technology level.

FDI Projects- Strategic Level

92%

8%

Strategic

Non- Strategic

Of totalFDI Projects

64

%

65% of the FDI projects are strategic and account for 92% of total FDI capital coming into Dubai.


Dubai FDI Monitor analysis


The Dubai FDI Monitor report classifies FDI projects on technology level based on the sector, sub-sector and activities of the projects and in line with OECD, EU and BEA definitions.

FDI Projects- Technology Level

70%

%30

High & Medium Tech

Low Tech

69%Of total

FDI projects areclassified Medium to

High Tech

69% of FDI projects attracted are of High and Medium technology and accounts for 24.3% of total FDI capital coming into Dubai

Trends




Key Foreign Direct Investment (FDI) countries continue to invest in construction to meet the rising demand from Dubai’s new development projects. This trend is a clear indicator of these companies and countries long-term positive outlook for Dubai and the UAE.

The software publishing sector, again make the top five, particularly operating under the business function of “Technical Services & Testing”. FDI into this sector has been consistent over the last two quarters and has been acting as an enabler for innovation in Dubai, as well as contributing to the increasing role of technologies and innovation in the Government. Dubai is attracting companies who are taking long term outlook on Dubai and the region, and are enabling Dubai to be “future ready”.

Top 5 Source Countries by FDI Capital

The top five source countries by FDI capital account for 92.4% of all FDI capital coming into Dubai, which accounts for 53% of all FDI projects

United States

Belgium

Japan

Cyprus

Bahamas

28.7%

23.1%

14.9%

12.4%

10.6%


Trends



Top countries by Foreign Direct Investment (FDI) projects continue to come from knowledge and service based economies. Despite slower than expected rates of growth in the US and UK, they continue to be the top two investors in Dubai (by projects) for the third quarter in a row. These countries continue to use Dubai as their base of operations for the wider region, with the main functions being Business Services and Sales, Marketing & Support services.

Top 5 Source Countries by FDI Projects

The top five source countries by FDI projects account for 61% of all FDI projects coming into Dubai, which accounts for 34% of total FDI capital


United States

United Kingdom

Germany

India

Italy

25%

19%

6%

6%

4.8%

Trends



Top 5 Sectors by FDI Capital

The majority of FDI capital continues to flow into construction related activities to support Dubai’s growing infrastructure. The software publishing sector is in the top five again and has taken a larger part of incoming FDI, due to companies investing to enhance their technical services and testing and contributing to Dubai’s growing digital economy

Top sectors by Foreign Direct Investment (FDI) Capital account for a total of 90.2% of total FDI inflows, over 26% of total projects


51.3%

15.9%

Accommodation & Foodservices

Nonresidential BuildingConstruction

Software publishers

Warehousing & Storage

Educational Services

14%

4.7%

4.3%

Trends



Top 5 Sectors by FDI Projects

Service functions such as sales & marketing and business services make up the majority of FDI projects in the top sectors. These service functions continue to serve the region with Dubai acting as its gateway and hub of operations.

The top sectors by Foreign Direct Investment (FDI) by projects account for a total of 45% of all FDI projects and 70% of all FDI Capital.


12%

10%

Administration &support Services

Accommodation & Food Services

Educational Services

Software publishers

Finance & Insurance

8%

8%

7%

Trends



The Dubai FDI Monitor tracks FDI projects that have 10% or more foreign equity, are categorized into industries following the NAICS classification, recognizing the parent headquarters as the source of investment.

FDI Project announcements are qualified through public information or direct

confirmation from the investor.

FDI Projects Tracking

The FDI Project validation process includes identifying the investor local mailing address, company registration information, recruitment of staff or signing of a lease.

FDI Projects Qualification

STANDARDS

PROCESS

The Dubai FDI Monitor data Analysis reporting is based on percentage and not FDI capital amounts or project numbers of projects distribution.

This approach provides a high-level view that is consistent with long term trends, given the variation on both FDI capital and FDI projects numbers that occur during the qualification and validation process.

Data Analysis Reporting

The Dubai FDI Monitor report classifies FDI projects on a strategic level based on turnover, size and technology level.

Strategic Project Classification

APPROACH

CRITERIA

The project is over $50Mn in valueThe project is represented by companies with sales over $350Mn The project classifies sectors and sub-sectors with a technology component.

Dubai FDI Monitor Methodology



About Dubai FDI Monitor

First Ever FDI Monitor at a City Level

Accurate and real time reporting on FDI flows ,trends and economic impact

PURPOSE

Annual FDI Results – Highlights ReportQuarterly FDI Performance – Trends Report

DUBAI FDI MONITOR REPORTS

Provides credible insights on FDI results and performance Informs the policy and strategy formulation processDevelops targeted services to investors

BENEFITS

FDI trackingFDI validation Investors and projects database

KEY FEATURES:



For further information contact :

Hassan [email protected]

Akil [email protected]

Use of this Report

The Dubai FDI Monitor issues an Annual FDI Results – Highlights Report and quarterly FDI Trend Analysis Reports based on Financial Times - fDi Markets data, used by central banks around the world including UAE Central Bank and for Dubai FDI Monitor data and trend analysis.

DUBAI FDI MONITOR data and trend analysis are based on international classification standards (NACIS) and best practices and powered by a proprietary tracking technology, developed by leading FDI technology consultants, WAVTEQ and used by governments around the world, including the US Department of Commerce.

The Dubai FDI Monitor reports are published solely as a service to Dubai FDI stakeholders. Dubai FDI takes reasonable steps to ensure that the service provided is accurate, current and complete. However, please take into consideration that the Dubai FDI Monitor data is updated on real-time, hence this information and analysis may vary based on the date of publishing due to the variation on both FDI capital and FDI projects numbers that occur during the on going project qualification and validation process.

The Dubai FDI Monitor provides information and trend analysis reports on FDI capital flows and projects to Dubai. The reports are available on Dubai FDI website (www.dubaifdi.gov.ae) and are free to download. Should you need a customized report, Dubai FDI team will strive to provide you with the information upon receipt of your request. Dubai FDI retains the right at our sole discretion to deny requests that do not comply with internal policies and procedure.

The Dubai FDI Monitor is not an official statistical data source. For official statistics on FDI stocks in Dubai, please contact : Dubai Statistics Center (https://www.dsc.gov.ae). For official statistics on FDI stocks in UAE, please contact : Federal Competitiveness and Statis-tics Authority (http://fcsa.gov.ae/en-us).



www.dubaifdi.gov.ae

+971 4 4455964, +971 4 4455939 [email protected]

Business Village, Block A, 9th Floor , next to the Clock Tower , Deira, Dubai

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Contact Us

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DUBAI FDIDubai Investment Development Agency (DUBAI FDI), is an agency of the Department of Economic Development (DED) – Government of Dubai. We develop, promote and support Foreign Direct Investment (FDI) opportunities to facilitate Investors’ success, growth and expansion in Dubai, the United Arab Emirates and across regional and international markets.

DUBAI FDI works alongside foreign Investors to guide and assist on all aspects of business decisions, from identifying opportunities across key sectors and determining the best legal structure to set up their business by connecting Investors to a vast network of government and private sector leaders to enable their growth and expansion.

DUBAI FDI works with multiple Stakeholders at national, regional and international level to develop networks and partnerships and advocate policies and strategies with the aim to enhance Dubai’s economic sustainability and competitiveness as a pivotal hub in the global economy.

08:00 - 15:00 (Sun-Thursday)


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DUBAI FDI · PDF fileThe Dubai FDI Monitor report classifies FDI projects on technology level based on the ... FDI Project announcements are qualified through public information or