Culture and creative industries: Dubai tops global list in FDI projects in 2022

Dubai has achieved the top global ranking in attracting foreign direct investment (FDI) projects in the cultural and creative industries in 2022.

According to the Dubai FDI Monitor report, compiled by Dubai’s Department of Economy and Tourism (DET) and based on data from the Financial Times‘ ‘fDi Markets,’ the world’s leading data source on greenfield FDI projects, Dubai attracted a record-breaking 451 projects in the cultural and creative industries.

This represents an increase of 107.7 per cent, surpassing major global cities such as London, Singapore, Paris, and Berlin.

Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, chairperson of Dubai Culture and Arts Authority and member of the Dubai Council., said: “These notable accomplishments exemplify the remarkable strides made by Dubai’s cultural and creative industries and highlight the strength of its economic ecosystem.

“The emirate attracts innovators and talented individuals worldwide, providing them with an enabling environment where innovative projects can flourish, ground-breaking ideas can be nurtured and ambitious concepts can be transformed into thriving economic ventures.

“Dubai achieves this by leveraging its unique cultural diversity and renowned status as a premier destination for living, working, and investing. Moreover, Dubai is committed to establishing a sustainable development landscape that transcends the present and future, ultimately positioning itself as the global capital of the creative economy by 2026.”

The emirate’s total FDI capital flows in the cultural and creative industries surged to Dhs7.357bn in 2022, ranking the city first in the MENA region and 12th globally (up from 14th in 2021).

This FDI generated an estimated 12,368 jobs, positioning the emirate’s first in the MENA region and 6th globally (maintaining the same level as 2021) in job creation in FDI.

Growth in line with Dubai Economic Agenda D33

Helal Saeed Almarri, director general of the emirate’s Department of Economy and Tourism, said: “This remarkable achievement is a testament to the support and commitment of HH Sheikh Mohammed bin Rashid Al Maktoum to foster a vibrant and innovative creative economy that contributes to sustainable development, as well as ensuring that Dubai further consolidates its status as one of the top three global cities as envisaged under the Dubai Economic Agenda, D33.

“The No1 global ranking in attracting FDI projects into the CCI sector also highlights the emirate’s commitment to build on and leverage its supportive environment, world-class infrastructure and a legislative system that stimulates the creative economy, attracting a new generation of global talents, investors and entrepreneurs. We look forward to continuing our efforts to enhance the competitiveness and attractiveness of this sector in the global market.”

The US, India, the UK, France and Switzerland emerged as the leading foreign direct investors in Dubai’s cultural and creative industries in terms of FDI projects, while the US, India, Switzerland, France and UK topped the list in terms of FDI capital inflows.

In 2022, Dubai Culture participated in global missions to cities within the UK and the US to showcase Dubai’s unique creative landscape and establish collaborations with creative entrepreneurs and organisations.

According to Dubai FDI Monitor data, greenfield (wholly-owned) FDI projects accounted for 76 per cent of the total in the emirate’s cultural and creative industries in 2022, followed by new forms of investments (NFIs), which accounted for 13 per cent, mergers and acquisitions and reinvestment projects making up 5 per cent each, and greenfield (joint ventures) at 1 per cent.

Creative industries see growth

Over the past few years, the top sub-sectors in the emirate’s creative industries have displayed dynamic trends. Non-video game software publishers and custom computer programming services have gained prominence, with the latter experiencing a significant increase in its share of FDI capital in 2022.

Architectural, engineering, and related services have consistently grown, highlighting emirate’s emphasis on developing a sustainable built environment. Data processing, hosting, and related services experienced a surge these last two years.

The jewellery, luggage, and leather goods stores sub-sector has maintained a steady presence, showcasing emirate’s position as a luxury retail destination.

Meanwhile, the motion picture and sound recording industries have begun to gain traction, indicating the city’s expanding role there. These trajectories exemplify the emirate’s adaptability and resilience in nurturing all of these creative industries.