More than 80 per cent of Middle East investors plan to maintain or increase their investments in Dubai, according to a new report by Dubai Economic Department (DED).
The key industries that have the most attractive profile in Dubai are telecoms and utilities, said the report entitled “Dubai – The FDI destination of choice” released by the Foreign Investment Office (FIO) of the DED.
These findings are encouraging as overall investor confidence in Dubai had fared well, indicating a positive position after times of global turbulence, the DED said in a statement.
Asked about their future plans, 81 per cent of investors who have investments in Dubai, said they plan to maintain or increase investment in the emirate. These findings are especially striking when compared to equivalent global figures, the statement said.
When asked about their global investment budgets, 37 per cent of global investors indicated that they plan to cut down their investments, it added.
Interestingly, almost half of the investors who are planning to increase their investments in Dubai plan to reinvest in their current businesses.
“The general rule that the current investor is essential to future investment flows appears to hold true in Dubai. This is especially important in times of global turbulence when many investors seek new opportunities” said Fahad Al Gergawi, chief executive officer of FIO.
The report also revealed that 29 per cent of the bullish investors plan to enter into new joint ventures with local partners, and 14 per cent plan to acquire equity in local companies in order to grow their presence in the market, he added.
The report highlights a number of industries as more positively inclined than others to invest in with telecoms and utilities topping the list.
Dubai is also a top ten choice among executives from the financial services industry, being the sixth most important destination globally for future investments.
Non-financial services executives (representing companies from fields such as transportation, business services, health care, legal services and education) ranked Dubai among the global top 20 FDI destinations.
Finally, primary industry investors rank Dubai above the global median while manufacturing industries (both heavy and light manufacturing) are more bear¬ish about Dubai’s prospects ranking Dubai below the global median.
“Considering the solid foundation of FDI attractiveness in Dubai and the reported future prospects, the Foreign Investment Office (FIO) will continue to consider ways and venues to further support Dubai in cementing its top FDI destination globally,” Al Gergawi added.