Investment in the UAE: A Top Global FDI Destination in 2021
With over two decades of business experience in the UAE, we highly encourage anyone interested in making an investment in this dynamic country to do so. So, why should you pursue business investment opportunities in the UAE? Here’s some data about how the country sits among the top foreign direct investment (FDI) destinations in 2021.
The UAE’s performance in the FDI Confidence Index
The management consulting firm Kearney publishes a Foreign Direct Investment Confidence Index Ⓡ surveys and asks investors about their sentiment towards directly investing in some of the world’s most prominent and up-and-coming economies. The 2021 rankings inevitably showed the impact the COVID-19 pandemic had on many emerging markets, with the UAE as one of the only countries fitting this description still making the rankings.
The UAE is the top ranked country for FDI confidence in the Middle East and at #15 overall and moving up four places from #19 the prior year. The UAE was also only one of three countries to see a slight increase in its score in 2021 compared to 2020. The study also found the UAE tied for the fifth-highest net optimism score along with Australia. The only countries ahead of the UAE were Japan, Germany, Canada and Switzerland, all developed economies that signal stability in this context where the pandemic’s impact remains evident.
Why should investment companies establish themselves in the UAE?
The Kearney study noted three crucial factors for why the UAE stood out in its rise in the 2021 rankings. Along with efficiently managing the pandemic, there were two other distinctive features about the Emirati economy that could explain the positive sentiment and rise in rankings.
First, the UAE has an advanced technological infrastructure (including adopting Blockchain technology in many bureaucratic processes). Investors that choose to go to the UAE will benefit from an ICT sector that boasts over a decade of public investment through the ICT Fund to support private entities in boosting their competitiveness in information and communication technology. The country’s network of Free Zones, including Silicon Oasis, the DMCC and Dubai Media City, include activity licences in key growth sectors in tech.
Not only is this advanced tech prowess a key to why the UAE is a powerful FDI destination. There are also high innovation and public investment levels in Research and Development to bring the latest and greatest into the Emirates. Price Waterhouse Coopers also predicted that 14.5% of the UAE’s GDP would come from Artificial Intelligence (AI) by 2030. Innovation in the UAE does not exclusively lie in AI; you’ll also see significant investments in cloud technology, particularly in cybersecurity and the public cloud.
What investment business opportunities are there in the UAE?
For investors interested in bringing money to the UAE, the possibilities are endless. You’ll benefit from lower setup costs, no restrictions on foreign ownership and no corporate or income taxes, among other perks. If you wish to open an investment account, make an online investment in the UAE or obtain an investor visa and make the Emirates your home, our team at Europe Emirates Group will guide you through the wealth of opportunity you can find on the Gulf. If you’re ready to get started, book your initial consultation today.
Written by
Adrian Oton
CEO, Europe Emirates Group