Dubai attracted Dh27.3 billion ($7.4bn) of inward foreign direct investment (FDI) last year, a 7.1 per cent increase from the previous year bolstered by investment projects from the US, Europe and Saudi Arabia, according to official statistics.
In particular, the emirate is a top global destination to invest in technology and technology transfer, with medium- and high-tech ventures accounting for more than 60 per cent of investment projects, the latest Dubai FDI Monitor report, published on Sunday, showed. Research & development accounted for 3.5 per cent of total FDI into Dubai in 2017, the report added.
“The increase in FDI flows into Dubai and the emirate’s ability to maintain its global leadership among FDI destinations in 2017 reflects the confidence of local and international investors in the business environment in Dubai and the UAE,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.
Dubai and the UAE government as a whole have been taking steps to increase FDI inflows in recent years. These measures include encouraging new businesses to set up in economic free zones with lower registration costs, streamlining regulation in emerging growth sectors such as FinTech, and, last month, announcing plans to relax corporate ownership laws to allow foreign investors to own 100 per cent of a UAE company.
Efforts to increase FDI are part of broader measures to boost the contribution of the non-oil sector to the UAE economy to 80 per cent by 2021, from the current 70 per cent, following sluggish economic growth on the back of low oil prices.
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The UAE overall recorded $10.3bn of inward FDI in 2017, up 6.7 per cent from $9.6bn in 2016, according to previously released figures from the Federal Competitiveness and Statistics Authority.
In Dubai, the total number of inward FDI projects last year increased 50 per cent from 2016 to reach 367, the FDI Monitor report showed. The projects included new investments, re-investments and mergers & acquisitions, among others. Strategic projects with capital of more than $50m accounted for 93 per cent of total capital inflows.
Dubai continued to attract strategic investments from major industrialised countries in 2017, the report added. The US, the UK, France, India and Germany respectively, followed by Saudi Arabia and Austria, were the top source markets for FDI into Dubai last year.
“This reinforces both Dubai’s success in providing a platform for businesses to serve the world’s fastest-growing markets spanning the Middle East, Africa and South Asia, and its status as a global economic hub,” it said.
Dubai witnessed an increasing inflow of technology and knowledge-based FDI investments – such projects accounted for 22 per cent of total capital inflows in 2017 according to the classification adopted globally by the Organisation for Economic Co-operation and Development (OECD).
The figures “confirm Dubai’s success in creating an environment suitable for new business models that rely on technology and innovation as competitive advantages”, the report said.
Company%20Profile
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
