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UAE Among Top 15 Most Attractive Global FDI Nations

UAE Among Top 15 Most Attractive Global FDI Nations

Solid infrastructure and investor friendly policies have helped the country move up in a global FDI rankings list.

Well-developed infrastructure, strategic location and a tax-free base have boosted the UAE’s favourability among investors, positioning the country as a hub for foreign direct investment, a recent survey has found.

The UAE has moved up one place and now ranks 14th on the latest A. T Kearney Global Foreign Direct Investment Confidence Index (FDICI), which measures present and future prospects for FDI flows.

The Gulf state, which recorded $7.7 billion in inflows in 2011 – up 40 per cent from 2010, offers international investors easy access to fast-growing African and Middle Eastern markets. An investor friendly legislation that would allow foreigners to own more than 49 per cent business in certain sectors outside the designated free zones is pending cabinet approval thus reinforcing the country’s potential for international investment, the report said.

“With strengths in logistics, tourism, and hospitality, the UAE remains the pocket of strength for regional investments in the Middle East. FDI could increase incoming years as the UAE eases foreign ownership laws,” said Anshu Vats, partner at A.T. Kearney Middle East.

About 70 per cent of the corporate investors surveyed expect a near term recovery of their company’s FDI levels with half of them already seeing their budget returning to pre-crisis levels, while 20 per cent expect a return by 2014. However, almost one-third of the respondents are still taking a “wait and see” approach to FDI, the report added.

According to FDICI, the United States topped the list of the 25 most attractive FDI destinations followed by China, Brazil, Canada and India. Despite the debt crisis and a gloomy outlook on recovery, seven European countries ranked in top 20 with Germany placing the highest at number seven.

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