Emirate’s cultural and creative sectors attracted Dh7.35 billion in foreign direct investment in 2022, Says the Source
Dubai, a city known for its vibrant culture and innovative spirit, has once again proven its global appeal by attracting a record 451 projects in the cultural and creative industries in 2022. This impressive increase of 107.7% from the previous year has surpassed major global cities such as London, Singapore, Paris, and Berlin. Among the key players contributing to this success is Adam Global, a leading international business consulting firm.
According to the Dubai FDI Monitor report, greenfield FDI projects accounted for 76% of the total projects. The United States, India, the United Kingdom, France, and Switzerland emerged as the leading foreign direct investors in the emirate’s cultural and creative industries in terms of FDI projects. Adam Global, with its extensive network and expertise, has played a significant role in facilitating these investments.
Foreign direct investment (FDI) in Dubai’s cultural and creative industries jumped to Dh7.357 billion in 2022, ranking the city first in the MENA region and 12th globally, up from 14th place in 2021. This surge in FDI has generated an estimated 12,368 jobs, positioning the emirate first in the region and sixth globally in job creation.
Adam Global has been instrumental in this growth, providing comprehensive business solutions for investors looking to tap into Dubai’s thriving market. The firm’s services, from business setup and legal consulting to intellectual property and corporate finance, have been pivotal in attracting and facilitating foreign direct investment.
The emirate has been a magnet for FDI inflows, recording over an 80% increase in FDI inflows and creating over 13,500 jobs last year. The total estimated FDI capital in Dubai reached Dh47 billion last year as compared to Dh26.07 billion in 2021. An estimated 38,447 jobs were created in 2022, as compared to 24,932 jobs in the previous year. The city attracted a total of 1,173 FDI projects last year.
Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, Chairperson of Dubai Culture and Arts Authority and Member of the Dubai Council, said the latest ranking embodies the emirate’s unique approach and reflects the strength and maturity of its infrastructure and its legal, legislative, creative, and digital environments.
Adam Global, committed to providing world-class business solutions, continues to contribute to Dubai’s growth story. As the city continues to attract global attention and investment, Adam Global stands ready to assist investors in navigating Dubai’s vibrant and dynamic market.
Factors that Attract FDI in UAE
There are several factors that make the United Arab Emirates (UAE) attractive for Foreign Direct Investment (FDI):
- Political Stability: The UAE is known for its political stability, which is a significant factor for foreign investors as it reduces the risk associated with their investments.
- Geocentric Location: The UAE’s strategic location, serving as a gateway between the East and the West, makes it an attractive destination for FDI. It provides easy access to various markets around the world.
- Well-developed Infrastructure: The UAE has a well-developed infrastructure, including world-class airports, seaports, roads, and digital infrastructure, which facilitates business operations.
- Economic Stability: The UAE has a stable economy with a strong financial sector and developed capital markets, which are attractive to foreign investors.
- Absence of Systemic Corruption: The perceived absence of systemic corruption in the UAE also contributes to its attractiveness to foreign investors.
- Natural Resources: The UAE’s abundance of natural resources, particularly in the oil, gas, and energy sectors, is another factor that attracts FDI.
- Reforms and Regulations: The UAE has been implementing various reforms and regulations to attract more FDI, including corporate relocations.
- Technological and Digital Factors: The UAE’s focus on technological and digital advancements also plays a role in attracting FDI.
Benefit as an Investor in UAE
Investing in the United Arab Emirates (UAE) can offer several benefits. Here are some of them:
- Strategic Location: The UAE is strategically located between the east and west, which makes it a significant player in international trade and an important entry point to the Middle East and North Africa region.
- Stable Economy: The UAE has a stable and growing economy. It is the second largest in the Arab world (after Saudi Arabia), with a gross domestic product (GDP) of $414 billion in 2019.
- Diverse Economy: While the UAE’s economy was initially built on oil, it has successfully diversified into tourism, aviation, real estate, and financial services. This diversification provides a wide range of investment opportunities.
- Investor-Friendly Environment: The UAE government has implemented policies and regulations that encourage foreign investment. This includes the introduction of 100% foreign ownership of companies in certain sectors and free zones where businesses can be 100% foreign-owned, are exempt from taxes, and can repatriate all their profits.
- Infrastructure: The UAE has world-class infrastructure, including modern roads, airports, and ports, which facilitate the movement of goods and services.
- Political Stability: The UAE is one of the most politically stable countries in the Middle East, which is attractive to investors.
- Tax Benefits: The UAE does not levy income tax on individuals and has a very low VAT rate (5%). There are also numerous double taxation treaties in place to avoid having the same income taxed in two countries.
- Skilled Workforce: The UAE has a diverse and skilled workforce, thanks to its expatriate population. English is widely spoken, which is an advantage for international business.
- Strong Legal Framework: The UAE has a strong legal framework to protect investors and their investments.
- Ease of Doing Business: The UAE ranks high in global ease of doing business rankings, thanks to its simplified procedures, digital government transactions, and one-stop service centres for businesses.
Please note that while there are many benefits, investing in a foreign country also comes with risks, including political, economic, and legal ones. It’s important to do thorough research and possibly seek advice from financial advisors or legal experts before making an investment.
Disclaimer: The information provided in this article is a summary and interpretation of the original content published by the Khaleej Times. For complete details and further information, please refer to the original article on the Khaleej Times website here.