UAE foreign Investments rise to $9.6B

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The increased international investment of UAE as influenced by well-developed UAE foreign Investments rise to $9.6B infrastructure, strategic location, and tax-fee base contributes to the movement of its rank to 14th position in the latest AT Kearny Global Foreign Direct Investment Confidence Index (FDICI). The capacity of the country to attract investors in is improving despite the drop in foreign direct investment (FDI) of the Middle East region.
AT Kearney Middle East also cited that an increase in FDI can be expected in the coming years as an impact to a long-anticipated law that will allow foreigners to own more than 49 percent of businesses in some sectors outside of designated free zones, though approval is to be done.
The report also revealed that the FDI inflows to the Middle East and Africa dropped 10 percent to $91bn due to ongoing issues between Iran and the world’s big powers. As the Gulf Cooperation Council (GCC) countries suffered post crisis from cancellation of large-scale investments projects, the United Arab Emirates will remain to be a hub for regional investments. With strength in logistics, tourism, and hospitality, the country has a record of $9.6bn inflows, up 20 percent from 2011.
In global perspective, 70 percent of corporate investors surveyed expect near-term recovery of their companies’ FDI levels, 50 percent see their budgets are in pre-crisis level and 20 percent expect to return by 2014. While investors are still on hold of their business scheme as they have been since the recession in 2008, but they seem more optimistic and positive of business success in the recent years.
AT Kearney has seen a leveling effect this year between developed economies and developing nations in terms of foreign investment, although the world is moderately finding its stand on this. The United States in particular, reclaimed first place in this year’s FDICI for the first time since 2001 but its inflows are still below their 2008 peak of $306bn coupled with gradual rebound mirroring. China placed second as higher labour costs raise questions about the longer term attractiveness of China’s development model. Brazil remains in the third position with Canada and India rounding out the top five.