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The UAE Ministry of Economy announced the participation of 9 new international companies in the second generation of foreign investments initiative launched by the UAE government in July 2022, which aims to attract 300 digital companies in the field of advanced technology applications in many sectors.
The UAE Minister of State for Foreign Trade, His Excellency Dr Thani bin Ahmed Al Zeyoudi, said that this step proves the confidence of international companies in the UAE economy, and is a reflection of the progress made in the second generation of the FDI initiative and its effective role in strengthening the technological system in the country.
But what drives companies to invest in the UAE?
But what drives companies
to invest in the UAE?
- FDI Inflows
- UAE ranking in foreign investment flows in West Asia
- UAE ranking in foreign investment flows in the Middle East and North Africa
The UAE's position in foreign investments
Although the economic situation in many countries in recent years has been significantly affected by the Corona pandemic, the UAE’s economic position has been on the rise.
FDI Inflows
According to UNCTAD’s Foreign Investment Report 2022, the value of FDI inflows to the UAE increased by 4% in 2020.
UAE ranking in foreign investment flows in West Asia
The UAE ranked first in FDI inflows in the West Asia region, accounting for 37% of total inflows to the region, which amounted to $ 55.5 billion.
UAE ranking in foreign investment flows in the Middle East and North Africa
The UAE ranked first in the flow of foreign direct investment in the Middle East and North Africa, accounting for 31% of the total inflows amounting to $ 66.6 billion.
Economic sectors acquiring foreign direct investment
The UAE economy is characterized by diversity, and the most important economic sectors in it are:
- Wholesale and retail trade.
- Real estate activities.
- Financial services and insurance.
- Manufacturing.
- Mining and quarrying.
The most important countries investing in the UAE
- Switzerland.
- United Kingdom.
- India.
- United States.
- France.
- Austria.
- Japan.
- Saudi Arabia.
- Kuwait.
- Netherlands.
Conditions for foreign investment in the UAE
To establish a foreign company in the UAE, a number of conditions and licenses must be available in accordance with the Foreign Investment Law, the federal legislation in force and the local laws in force in the concerned emirate, as follows:
Legal form of FDI projects
Foreign direct investment projects shall take one of the following legal forms:
- Limited liability company, including sole proprietorship companies.
- A private shareholding company, including one-person companies.
9 foreign companies attracted
Nine new international companies have been attracted to the UAE’s second-generation foreign investment initiative:
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