Dubai Statistics: Dubai’s Foreign Investment Stocks Reach AED 505 Billion

Dubai – Masaader News

Dubai Statistics Center (DSC) announced that foreign investment stocks in Dubai reached AED 505 billion in 2016, an increase of 25.3% from 2015.

Outlining the factors that led to Dubai maintaining its position as one of the world’s top destinations for foreign investment, Arif Al Mehairi, Executive Director of Dubai Statistics Center (DSC) said: “Dubai’s competitive position regionally and globally was driven by the high-quality investment opportunities it offers, supported by its advanced infrastructure, and its high-quality policies, laws and services to support investors.”

Al Mehairi pointed out: “According to internationally adopted standards, the AED 505 billion foreign investment stocks came from three types of foreign investments: Foreign Direct Investment (FDI), Other Foreign Investments and Portfolio Investments. FDI contributed 57.5% of total foreign investment with AED 290.7 billion in 2016, a growth of 7.3% compared to 2015. FDI is the most important type of investment since Direct Investment is a cross-border investment associated with a resident in one economy having control or significant degree of influence on the management of an enterprise that is resident in another economy. What also gives FDI greater relevance and impact in boosting productivity is the fact that it often coincides with the transfer of knowledge and technology.”  

As for the second most significant type, he said, “Other Foreign Investments totaled almost AED 196 billion in 2016, representing 38.8% of Dubai’s total foreign investment, a rise by 58% from 2015. Other Foreign Investments include non-resident deposits, loans, commercial credits and other assets and liabilities.” “The third type of foreign investments, Portfolio Investments, represented 3.6% of total foreign investment stock with AED 18.2 billion dirhams in 2016 compared to AED 8.2 billion in 2015. These were investments in debt or equity securities.

Total Foreign Investment Stock by Type 

“UK and India maintained their former ranking as the leading countries in the Foreign Direct Investment list. Both countries’ total direct investment amounted to almost AED 70 billion, representing 24.2% of Dubai’s total Foreign Direct Investment in 2016,” said the DSC Executive Director.

Furthermore, Al Mehairi explained that the outcomes of DSC’s survey on foreign investment in Dubai singled out Wholesale and Retail Trade as the top activity, attracting AED 106 billion Foreign Direct Investment in 2016. “This accounted for 36.5% of total FDI compared to AED 104 billion in 2015, a growth rate of 2.4%,” he said.

The financial sector ranked second in terms of contribution to Foreign Direct Investments, accounting for 24.4% of the total in 2016 with AED 70.9 billion. The sector grew 18.5% from 2015.

The survey outcomes also showed that Real Estate Activities ranked third in FDI stock, registering a contribution of 21.6% in 2016 with a stock of AED 62.7 billion, compared to 58.8 billion dirhams in 2015, a growth of 6.6%.

According to the survey findings, the remaining economic activities of Dubai accounted for 17.6% of the total FDI stock with AED 51 billion in 2016 compared to AED 48.6 billion in 2015, a growth of 5.1%.

Total Foreign Direct Investment Stock by Economic Activity

Highlighting details of foreign investors’ place of residence, Al Mehairi stated that Asia accounted for the largest share of total FDI inflows into Dubai in 2016 with 43.6%. He highlighted that India led Asian countries in terms of its contribution representing 8.3% of the total with a stock of AED 24 billion, a growth of 10.4% from the previous year. He added that Europe was placed second with its contribution to Dubai’s FDI accounting for 34.2% of the total. The UK topped not only European countries but also the world, contributing 16% of the total FDI and achieving an annual growth of 7.4%.

The Americas were placed third, contributing 15% of total FDI. The United States of America ranked first in the Americas region contributing 5.9% of the total FDI with a stock of AED 17.2 billion, which represented a growth of 17.9% from 2015.

In fourth place came Africa which contributed 4.7% of total FDI. Oceania placed fifth with a contribution of 2.4%.

“Dubai’s international status and reputation was the crucial element in attracting foreign investments from across the world. A survey of foreign investors’ place of residence revealed that investors from 172 countries invested in Dubai in 2016,” Al Mehairi said.

Total Foreign Direct Investment Stock by Continent