India among top 5 source countries for FDI in Dubai

India emerged as a key source country for Foreign Direct Investment (FDI) in Dubai, ranking among the top 5 source countries for announced FDI projects and estimated FDI capital, Financial Times’ ‘fDi Markets’ report shows.

Dubai attracted a total of 1,173 FDI projects in 2022, with the estimated FDI capital flow into Dubai at AED47 billion ($12.8 billion) compared to AED26.07 billion in 2021. An estimated 38,447 jobs were created in Dubai in 2022, up from 24,932 in 2021.

The top five source countries for FDI projects accounted for 54% of the total in 2022, split among the United States (20%), the United Kingdom (13%), India (12%), France (5%), and Switzerland (4%).

With 77.5% greenfield projects, the top sectors by FDI projects from India into Dubai in 2022 were software & IT services (32%), business services (19%), consumer products (9%), real estate (6%), and financial services (5%).

The top sectors by FDI capital from India into Dubai in 2022 were consumer products (28%), software & IT services (20%), communications (19%), pharmaceuticals (8%), and business services (8%).

Apart from maintaining its 1st rank as a destination city for FDI from India, Dubai also retained the top spot globally for attracting ‘Greenfield FDI’ projects in 2022, says the report.

Dubai achieved 89.5% YoY growth in total announced FDI projects in 2022, while total FDI capital surged 80.3% over the same period.

The emirate ranked first in attracting FDI projects into tourism, business services, financial services, transport and warehousing, consumer products, and software & IT services sectors.

“The growth of the city’s share in global Greenfield FDI projects clearly indicates our strategy’s effectiveness and also highlights the city’s position as the capital of the global digital economy and a hub for innovation and technology, further ensuring that increasing FDI inflow remains a top priority and key goal of the D33 Agenda,” Helal Saeed Almarri, director general of Dubai’s Department of Economy and Tourism, says.

Overall in 2022, Dubai ranked seventh globally in attracting ‘Greenfield FDI Capital’ and fifth globally in ‘FDI Jobs’. From a MENA (Middle East and North Africa) perspective, Dubai ranked second in FDI Capital and first in FDI Jobs. Compared to 2021, Greenfield FDI (wholly owned) and new forms of investments increased by 6% in 2022 in the country.

The emirate’s share in attracting global greenfield FDI projects reached 4%, an increase of 1.9% compared to 2021, with a record 837 projects enabling the city to achieve the highest growth in global shares across the past seven years.

Additionally, the top five source countries for FDI capital accounted for 72% of the total estimated flows into the emirate in 2022, split among Canada (41%), the United Kingdom (12%), the United States (11%), India (4%), and Switzerland (4%).

The FDI primarily – 68% of announced projects – came in five major sectors, including transportation & warehousing, hotels & tourism, renewable energy, software & IT services, and consumer products.