Foreign Direct Investment (FDI)

Foreign direct investment plays a key role in the development of economy for countries in the Middle East such as Dubai, Malaysia, Bahrain.

The recent news reported foreign direct investment in Dubai increased to 30 percent in the year 2011 compare it to 2010. Since its development and there are several agreements with the other countries such as South American and Chinese. This helped by rising confidence as its debt problems ease and influx of South American and Chinese companies.

The latest available data from the central bank shows that in 2009 direct investment in to the UAE as a whole plummeted to Dh14.7billion from Dh50.4billion in 2008, but the data does not give the breakdown of Dubai. While increasing investor confidence has seen more than 40 entries in Dubai, the new companies coming from Brazil, Chile, China, Korea, United States and Europe. According to A.T Kearney’s 2010 foreign direct investment confidence index, the UAE is the most attractive investment destination in the Middle East. Middle East is ranked at 11^th in the world wide. But the 2010 foreign direct investment confidence index ranked, Dubai is one of the top 25 global destinations, Supported by the city rankings of Dubai which ranked 1^st place in the Middle East.

Approximately 70 percent of the global FDI inflows are going to the Middle East, but most of the inflows are invested in Dubai. Because Dubai’s of unique locations, infrastructure and value proposition as a factor for the investors. In addition city is as demonstrating an ease of doing every business.  

The FDI enhances economic development effectively in Dubai. It has generated massive profit from increases in FDI, this lead to increase in job vacancies and better life style. Therefore lower level of interest rate, the public easy to borrow and invest new business opportunities. The Dubai has grown quickly than other countries.