Dubai FDI down nearly 11% in 2016

Foreign direct investment flows into Dubai fell nearly 11 per cent last year as tougher market conditions continued to impact the region.

In its FDI Monitor report, based on Financial Times data, Dubai Investment Development Agency said the emirate attracted Dhs25.5bn ($6.9bn) in foreign investment last year compared to Dhs28.6bn ($7.78bn) in 2015.

The number of new investment projects was also down 11.47 per cent, from 279 last year to 247 this year.

Strategic projects accounted for 60 per cent of new investment initiatives and 92 per cent of foreign direct investment in 2016.

Nearly three quarters (73 per cent) of projects were classed as medium and high technology, including 100 start-ups and small enterprises with an annual turnover of less than $20m.

Research and development investment also increased from 1 per cent of the total in 2015 to 5 per cent in 2016.

The US, UK, India, Germany and Italy accounted for 152 projects, while Canada, the UK, France, Spain and the US were among the leading sources of capital.

Despite the decrease in overall investment, Dubai ranked seventh worldwide in terms of FDI inflows for 2016 and stood third behind London and Singapore for new investment initiatives.