Business & Economy
Dubai Poised to Boost Tourist and Attract Travelers in Post COVID-19 Era
With lockdowns and travel restrictions being lifted in several major travel destinations in the post COVID-19 situation, travellers across the world are gearing up to travel abroad. To capitalize on an ever evolving tourism trend, Dubai’s Department of Tourism and Commerce Marketing (DTCM) has recently launched a new global campaign, featuring recognized celebrities.
Dubai Tourism Campaign 2021
The campaign also invites global travellers, experience seekers, storytellers and artistic creators to share photos, videos and blogs sharing their experience in Dubai. The new global campaign features a series of six short trailer films across different genres and shares a cinematic overview of Dubai’s locations, inviting travellers from around the world to visit the Emirate.
DTCMs City Briefing 2021
The DTCM held its first bi-annual ‘City Briefing’ for 2021 at Dubai Exhibition Centre, highlighting the sector’s promising performance since the reopening of the city to international tourists. The forum hosted over 1,000 key executives from leading establishments in the hospitality, travel, and tourism sectors.
Dubai Tourism & EXPO 2020 Event
The forum highlighted the enormous significance of Dubai’s tourism sector and the gathering pace of recovery in the events sector including detailed presentation on Expo 2020 event which runs from 1st October 2021 to 31st March 2022, as well as insights into domestic and global developments and marketing campaigns worldwide aimed at reinforcing Dubai’s profile as a safe, must-visit destination and the world’s best city to live and work in.
Dubai Tourism Performance
Dubai has continued to lead global tourism recovery and has constantly set new precedents in how to safely yet effectively open the market for international travelers which resulted in an incremental increase in tourist arrivals month-on-month from the destinations that are open. It was estimated that more than 3.7 million international travellers visited Dubai between July 2020 – May 2021 period, leading to tourism sector recovery in 2021. The current performance of Dubai’s tourism sectors is also a reflection of the crucial support extended by the stakeholders and partners of DTCM.
Despite the challenges during a pandemic period, Dubai Airports retained its position as the world’s busiest international airport for the seventh consecutive year with 26 million passengers visiting the Emirate in 2020. After having welcomed nearly six million passengers in Q1 2021, Dubai now looks set for a stable second quarter and the outlook for the second half of the year looks positive, primarily because of seasonal travel rush and upcoming major international events including the Dubai Expo 2020, Dubai Airshow 2021 and UAE’s Golden Jubilee celebrations which will happen in Dubai.
Dubai Tourism Sector Outlook 2021-22
Dubai continues to be a preferred destination for travellers as the Emirate has adapted quickly to change – both of which have undoubtedly helped the hospitality and travel sector begin its journey to recovery. The re-opening of the city to international tourism last July certainly brought great opportunities for the hospitality industry and the Dubai government will continue to play an active role in supporting the tourism sector and ensuring that Dubai continues to be an attractive tourist destination among international travelers in the post COVID-19 era.
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Dubai Reduces Government Service Fees to Support Businesses – 2021
Dubai has recently reduced or cancelled fees for 88 government services to minimize the financial pressures on businesses that are operating within the Emirate. The initiative aims to lower living costs, support investors and improve the business environment in Dubai. The decision was approved by H.H. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
The initiative also authorises heads of government entities to take decisions to reduce or waive any payments other than fees imposed for its services and products, once an approval is obtained from the Department of Finance in Dubai. Cancellation or reduction of the payments has to be formalised by the enactment of legislation and its publication in the official gazette. Executive Council Resolution Number 19 of 2021 will come into effect from the date of its publication in the official gazette.
Major Fee Waivers – Dubai Government Entities
The Department of Economic Development (DED) Dubai will reduce fees for issuing and renewing licenses of business centres and issuing of licenses for providing government services, among others.
Dubai Tourism will stop charging fees for tourism permits and replacement of lost tourism permits, tourism permits for people under 16 years and permits for fashion shows.
The Roads and Transport Authority (RTA) will waive fees for issuing no-objection letters for transfer of traffic files, permits for closing roads for major construction work and fees relating to recreational bikes etc.
Dubai Maritime City Authority (DMCA) has mentioned that they will waive some fees related to residency visas, including the processing of residency visas for applicants outside the country, the issuance of employment residency visas, urgent renewals of residency visas and residency visa transfers from a government entity to the Authority and few other fee waivers.
Dubai Municipality will remove fees relating to permits for labour supplies rooms, re-issuance of cheques, urgent medical certificates and renewal of occupational health cards. They will also reduce fees to renew annual representative office licenses and replacement of lost certificates and licenses.
While these are the major initiatives, several other government entities based in Dubai have also started to reduce or cancel fees to support the businesses operating in the Emirate.
Investment Opportunities in Dubai – UAE
UAE based investors are confident in the government’s commitment in providing an effective environment for their businesses to grow in terms of infrastructure, safety, subsidies and other waivers. The initiative by H.H. Sheikh Hamdan bin Mohammed to reduce or cancel government related fees will help have a huge contribution towards the ease of starting and managing a business for new business owners, entrepreneurs and investors. The UAE government has also provided a clear path to acquiring citizenship for international investors who excel at investing in key sectors. With an eye to the future and upcoming EXPO 2020, the Dubai government is implementing strategies that focus on inclusive growth, with a particular attention on expanding opportunities for younger generations.
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UAE F&B Industry Market Outlook – 2021
The UAEs Food & Beverage (F&B) industry is one of the major contributors towards the country’s economy with revenues estimated at AED 86 billion ($23 billion) in 2020 and a CAGR of 5.5%. The UAE’s diverse and growing population combined with the strong purchasing power and consumer preference to dine out were some of the major contributing factors driving the growth of the F&B industry in the UAE.
Over decades, the country has attracted investors to invest in UAEs F&B industry thanks to strong growth potential and demand emanating from both retail and HORECA (Hotels, Restaurants & Catering) segments.
UAE F&B Market Potential
UAE is one of the most diverse countries in the world hosting more than 200 nationalities. According to a conservative estimate, the UAE has over 20,000 registered restaurants and cafés in the country with more than half of them in Dubai. The growth in the F&B sector has been driven by consumer appetite for a wide range of cuisines.
Post COVID-19 UAE F&B Industry Recovery
Statistics from the Federal Competitiveness and Statistics Centre (FCSC) published data suggesting that the F&B in UAE was one of the sectors that posted a significant growth rate in the post COVID scenario. The FCSC data shows increases in price indexes covering the seven sectors that constitute the UAE’s Consumer Price Index (CPI). The UAEs Food and Beverage sector recorded 107.57 points in May compared to 106.82 points in April for the year 2021. The FCSC also suggested that the demand for F&B sector in UAE will further increase in the coming years.
Increase in F&B e-Commerce Sales – UAE
During the pandemic, consumer behaviour saw a drastic change, with the majority of them preferring online orders over dining out. The online sales within the UAEs F&B sector surged in 2020 reaching a value of AED 1.5 billion (USD 412 million), recording a year-on-year growth rate of 255%. While the e-Commerce purchase value in the country has nearly doubled in recent years, supported by the Covid-led digital shift has changed consumer behaviours. Though the trends are back to normal with residents preferring to dine out, the demand for online F&B in UAE will still be on rise with its sales value expected to reach AED 2.2 billion (USD 619 million) by 2025, with an annual growth of 8.5% over the 2020-2025 period.
Read: UAE’s Food and Beverage e-Commerce presents investment opportunities
Investment Opportunities in UAE F&B Sector
Despite a global economic slowdown because of the pandemic, the UAEs F&B sector continues to perform better compared to other sectors. With Dubai being one of the first city to control and open up during the COVID19 pandemic and its efforts in cementing its position as a strategic re-export hub in the Middle East and Africa (MEA) region, the F&B sector is expected to witness further growth in the years to come. In addition, the overall expenditure on F&B products in the UAE is estimated to increase by 7% on an annual basis from AED 136 billion (USD 37 billion) in 2020 to AED 150 billion (USD 41 billion) by the end of 2025 making it a great destination for F&B related business investments.
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UAE’s Food and Beverage e-Commerce Presents Investment Opportunities
A recent webinar organized by Dubai Chamber of Commerce, MNCs and on-demand delivery app InstaShop identified new business opportunities in the UAE’s food e-commerce sector that companies in emerging markets can capitalise on. The focus of the webinar was on Food & Beverage (F&B) e-commerce awareness. More than 84 participants from 33 countries, representing food manufacturers, export promotion agencies and trade offices participated in the webinar. Sessions during the event examined the latest UAE food e-commerce dynamics, trends and competitive advantages that Dubai offers as a world-class food e-commerce and innovation hub.
The virtual event provided valuable insights on the UAE’s food e-commerce ecosystem and evolving business landscape. Insights on the importance of using e-commerce platforms to expand business beyond borders and tap into growing demand among consumers in the UAE and surrounding markets who are increasingly turning to digital channels to access products and services were discussed in the event.
UAE – Online F&B Segment Performance
Despite the COVID-19 pandemic affecting several industries in UAE, the online sales within the F&B sector surged in 2020 reaching a value of AED 1.5 billion (USD 412 million), recording a year-on-year growth rate of 255%. While the e-commerce purchase value in the country has nearly doubled in recent years, supported by the Covid-led digital shift has changed consumer behaviours. The value of online food and beverage sales in the country is expected to reach AED 2.2 billion (USD 619 million) by 2025, with an annual growth of 8.5% over the 2020-2025 period.
Dubai’s digital economy is growing at a significant phase as various sectors adopt advanced technologies and cutting-edge solutions, while more e-commerce players enter the market. Addressing the rapid growth, the benefits of leveraging the e-commerce platform, as well as potential marketing partnership opportunities were discussed in the webinar session.
Dubai Chamber & Google Partnership
Google and Dubai Chamber have partnered to launch ‘Business Online Presence’, a comprehensive digital solution designed to help businesses in the UAE manage their online presence, maximise visibility and attract new customers. The new solution was launched during the webinar event.
Members of the Dubai Chamber can now access the ‘Business Online Presence’ dashboard to set and verify their business profiles across single or multiple locations on Google Search and Maps. Those online profiles feature essential business details such as opening hours, contact details, address and photos. Businesses can also post timely offers and promotional packages during special seasons. The tool can also generate a customized total score for each business’ online readiness and reputation management. Members of the Dubai Chamber can use the dashboard to standardize brand experience and engage with customers through online reviews, access timely insights like their store visits and identify operational challenges faster. A training program to learn the digital skills needed is also provided by Dubai Chamber under the name of ‘Maharat Min Google’.
Investment Opportunities in UAE Online Food and Beverage Segment
Online food delivery has exponentially grown over the past decade, and more so in the last two years, because of the pandemic. Majority of the residents in UAE have started to prefer ordering food online, which has led to a significant rise in the food delivery business and e-Commerce sector. Reports show that revenue in the online food delivery segment is projected to reach AED 11 billion (USD 3 billion) in 2021. The trends are expected to continue, with UAE residents actively switching to online food orders, providing opportunities for investment in the sector.
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Abu Dhabi Reduces Private Sector Business Setup Fees by 90%
UAE – As a part of the ongoing efforts to support the private sector, Abu Dhabi has recently announced that it would reduce business setup fees, as well as licence renewal fees, to AED 1,000 (USD 272), which is approximately 90% reduction from the existing business setup fees. The announcement was made by the Abu Dhabi Department of Economic Development (ADDED) in collaboration with other government entities such as Abu Dhabi Chamber of Commerce and Industry.
The fee reduction will be applicable for six activities in the business license and will cover all fees from Abu Dhabi Government entities such as ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, CoC (Certificate of Conformity) issuance fee and the other fees required by Abu Dhabi regulating entities based on the type of business.
Impact of Business Setup Fee Reduction on Abu Dhabi Economy
The initiative to reduce the fees will enhance the ease of doing business in Abu Dhabi and the UAE. It will also increase Abu Dhabi’s competitiveness regionally and internationally. The introduction of a fixed fee will increase transparency and reduce administration for investors. It also supports Abu Dhabi Government’s efforts to create an ideal business environment for the private sector, particularly for Micro, Small and Medium Enterprises (SMEs). The business fee reduction is among one of the several initiatives for the new economic strategy to create a thriving business environment that encourages growth and innovation.
Abu Dhabi Government Support for UAE Businesses
The Abu Dhabi government has also allocated AED 3 billion (USD 816.8 million) credit guarantee scheme to SMEs through the several Accelerator Programme and introduced relief funds, subsidies and waivers to support the businesses in the Emirate. Along with the financial incentives and public incentives, Abu Dhabi in collaboration with other organizations are working towards economic development by identifying gaps and opportunities in the business ecosystem and to connect people from the public and private sectors, and across different industries. Abu Dhabi is currently focusing on improving areas that collide with the interest of national security, development priorities and the competitive advantages found in the Emirate.
Investment Opportunities in Abu Dhabi – UAE
UAE based investors are confident in the government’s commitment in providing an effective environment for their businesses to grow in terms of infrastructure, safety, subsidies and other waivers. The restructuring of fees will also help in ease of starting and managing a business for new business owners, entrepreneurs and investors. The UAE government has also provided a clear path to acquiring citizenship for international investors who excel at investing in key sectors. With an eye to the future, Abu Dhabi’s development strategy continues to focus on inclusive growth, with a particular attention on expanding opportunities for younger generations.
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UAE Economic Activities to Recover in 2021
Industry experts forecast that the UAE economic recovery will strengthen further in the second half of 2021, primarily because of the successful vaccination drive, economic stimulus plans, visa reforms and other government policies to facilitate the growth of business in UAE. The non-oil sector will continue to drive economic recovery as the government successfully implemented measures to contain Covid-19 pandemic in the country. As a result, the UAE based businesses, investors and consumers have regained their confidence and are now looking ahead for a promising future.
The economic activities are improving and are expected to reach pre-Covid 19 conditions in the next six months. The AED 7.1 billion (USD 2 billion) stimulus package that was announced by the Dubai government since the outbreak of Covid-19 pandemic played a key role in reviving economic activity in the Emirate. According to the data published by the Central Bank of UAE, the country’s economy is expected to see a growth of 2.4% and 3.8% in 2021 and 2022, respectively.
UAE Business Growth Opportunities
Apart from UAE, the outlook for most Middle Eastern countries also looks positive in the second half of 2021, however the economic growth and sustainable recovery in the coming month in the Middle East region will depend on controlling and keeping the coronavirus levels low. Key events such as EXPO 2020 in Dubai and 2022 FIFA world cup in Qatar will play a vital role in reviving the economy of the Middle East.
The region’s economies are in an ideal position to capitalise on the emerging growth opportunities. Dubai is preparing itself in full swing to give final touches to EXPO 2020 which is to happen in October 2021. In addition the tourist activities are also expected to pick up with the opening of international borders. The increasing oil demand also provides a positive sign for the revival of the global economy. The controlled situations of Covid-19 pandemic in China, Europe and the US will help resume international traffic in coming months and positively contribute to the development of UAE’s economy.
Investment Opportunities in Dubai & UAE
UAE’s economy was resilient and bounced back strongly from the Covid -19 pandemic last year. UAE’s economy is on track to post 2.4% GDP growth in 2021 because of the timely measures to contain the pandemic. The government implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. It has also increased the investor and consumer confidence and Dubai is expected to attract fresh investments into all sectors, especially Food & Beverage (F&B), Real Estate & Construction, Healthcare, Renewable Energy, e-Commerce and Service Innovation. The foreign investors are also actively investing in the retail and maritime sectors, reflecting their confidence in the UAE economy to provide an effective environment for the businesses to grow.
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UAE Records Positive Economic & Commercial Activities – 2021
UAE has started seeing positive signs of economic recovery from May 2021 onwards recording a strong growth since the start of the pandemic. It has also recorded a solid recovery of key sectors that support the national economy. Some of the key sectors are expected to witness growing demand in the forthcoming months. Statistics from the Federal Competitiveness and Statistics Centre (FCSC) reported increases in price indexes covering seven major sectors that constitute the UAE’s Consumer Price Index (CPI). The CPI for the culture and entertainment sector led this category with its index points rising to 106.36 (CPI) in May 2021, compared to 103.68 (CPI) in April 2021.
UAE Key Sector Growth
The Clothing and Footwear segment within the UAEs retail sector recorded the second-largest growth in CPI to 115.02 points in May compared to 114.03 points during the same reporting period in April 2021. Similarly, the food and beverage segment recorded 107.57 (CPI) in May compared to 106.82 (CPI) in April (2021). The other goods and services sector rose to 115.75 (CPI) from 114.77 (CPI) for the same time period.
The Hotel, Restaurants & Catering (HORECA) segment within the Food Sector raised to 115.85 (CPI) in May 2021 from 115.09 (CPI) in April 2021 while the Healthcare sector increased to 106.31 (CPI) from 106.17 (CPI) and the Transport & Services sector reached 110.80 (CPI), from 110.33 (CPI).
Real Estate Sector Growth
The Dubai property market has started gaining momentum and has seen significant growth over the past few months. A total of 2,020 real estate and properties transactions were valued at AED 4.5 billion (USD 1.25 billion) in total during the first week of May 2021, according to a report published by Dubai Land Department (DLD). The DLD weekly report mentioned that among the 2,020 properties that were sold, 119 were plots with a total value estimated at AED 845 million (USD 230 million), while 1,321 were apartments and villas which were sold for AED 2.25 billion (USD 600 million).
Investment Opportunities in UAE & Dubai
The Dubai government has implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. The recovery plan that focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all sectors. The FDI (Foreign Direct Investors) are also actively investing in the retail and real estate sectors, reflecting the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. With the upcoming EXPO 2020 in October this year, Dubai is expected to be a major investment destination in the Post Covid-19 situation.
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UAE Hospitality & Tourism Sector is Expected to see an Accelerated Growth
The hospitality and tourism sector in UAE is expected to accelerate its growth and strengthen in 2021, as a result of the push to mass coronavirus vaccinations and the easing of travel restrictions in some countries. Reports from ‘Hoteliers’ suggested that UAE had the second highest Hotels occupancy rate after China in 2020 despite the pandemic. Similarly, the Department of Culture and Tourism (DCT) in Abu Dhabi also expects that the hotel occupancy rates will increase to at least 80% in 2021, from 70% in 2020.
With Abu Dhabi being confident about a substantial recovery in the tourism sector by the year 2021, the Emirate now focuses on providing high-quality and exciting experiences with health, safety & well-being as the top priority. Abu Dhabi has taken all the necessary precautions to welcome the increasing numbers of tourists in a safe environment. Currently Abu Dhabi DCT has a Green List of 14 countries, regions and territories that can travel to the Emirates. The committee constantly reviews the countries based on Covid-19 developments globally, planning to expand the green list and anticipates a growing number of countries to be added to it in the near future.
UAE Tourism – Growth Factors
The UAE is in a strong position to capture target markets as they reopen its borders. On similar lines, Dubai’s focuses on tapping into the conferences business, boost leisure events and start a new global marketing campaign in May 2021 to showcase the emirate as a summer destination for families. According to the statistics from Dubai Tourism, the Emirate hosted more than 810,000 international tourists in the first two months of 2021 compared to 3.27 million visitors in January and February of 2020. Last year, Dubai had 5.1 Million visitors, which was one-third of the number of visitors in 2019.
Some of the major growth drivers for the tourism industry include the Dubai Expo, the UAE’s 50-year celebrations, and a surge in domestic tourists. Once the key source markets of Saudi Arabia, the UK and Germany re-open, the rebound in leisure travel to the UAE will see a significant increase in its numbers. The Israel market will also be a huge opportunity following the normalisation of relations with the UAE, given the spending power and interest from both Israeli residents and travellers to Israel.
Growth in UAE Hospitality & Tourism Sector
Overcoming Covid-19 situation and a mass push for the corona vaccines will be a key to accelerate the growth of the tourism sector in the country. The UAE government has successfully rolled-out the Covid-19 vaccines with over 52.46% of the UAE population being vaccinated already. Other initiatives to help the growth in the local economy such as extension of freeze on government fees to support the local economy & businesses and the announcement of UAE citizenship has also boosted the interest level among tourists to visit UAE. The overall market shows significant potential for the growth in the Hospitality & Tourism sector in the forthcoming years.
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Dubai Records Foreign Direct Investment of AED 24.7 Billion in 2020
The Dubai Investment Development Agency, a part of Dubai Economy estimated that the Emirate recorded a Foreign Direct Investment (FDI) of AED 24.7 billion (USD 6.7 billion), across 455 projects for the year 2020. These FDI projects initiated in Dubai during 2020 exceeded the annual average projects over the past five years, which was estimated to be 441. Among the FDI projects, it was estimated that more than 50% were Greenfield projects wherein, the investors created a new brand at a new facility in Dubai. In addition, Dubai ranked first in the Middle East and North Africa (MENA) region and fourth globally in attracting FDI during this period and also achieved more than 2% of the global market share in Greenfield FDI projects for the previous year. Furthermore, approximately 18,325 new jobs were created as a result of these investments.
The FDI capital from reinvestment projects was estimated to be AED 1.6 billion in (USD 440 million), 2020, as per the data from Dubai FDI Monitor. Dubai ranked first in the MENA region in reinvestment FDI projects and 11th globally. Similarly, Dubai startups attracted an estimated AED 2.4 billion (USD 650 million), in FDI capital through 31 investments in 2020. The share of FDI projects in strategic sectors reached 57% and accounted for 91% of estimated FDI capital flows, reaching AED 22.5 billion (USD 6 billion). Around 76% of all strategic FDI projects in 2020 were invested in the technology sector with a total amount of AED 11.2 billion (USD 3 billion).
Dubai Foreign Direct Investment – Country & Sector
The United States was the top source country for FDI, accounting for 21% of FDI capital and 22% of FDI projects, followed by France (16%), Japan (11%), the UK (7%), and Germany (6%) made up the rest of the top five source countries for FDI capital into Dubai in 2020. The top five source countries accounted for 60% of the total FDI capital flows. The top five sectors with FDI flows were accommodation and food services (40%), electric power generation (13%), information services (8%), healthcare & social assistance (4%), and retail & whole trade (4%). The FDI capital in the top five sectors accounted for 69%.
Read: UAE an Attractive Destination for Investment Over Next 3 Years
Investment Opportunities in Dubai
The people-centric plan focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all the sectors. The FDI capital inflow during the year 2020, reflects the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. Dubai expects a significant increase in the FDI inflow in the forthcoming years with the futuristic strategies planned by the government.
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UAE an Attractive Destination for Investment Over Next 3 Years
The United Arab Emirates (UAE) rose to 15th position globally in 2021, up by four positions compared to the previous year on the Kearney’s Foreign Direct Investment Confidence Index (FDICI). The rankings were calculated based on the market research survey conducted by Kearney of 500 senior executives of the world’s leading corporations. The survey questionnaire asked questions related to companies’ likelihood of making a direct investment in a market over the next three years. Interestingly, global business executives stated that UAE is likely to attract the most investment in the next three years in the Middle East.
Despite the Covid-19 pandemic, UAE was one of the five countries that achieved a higher ranking in 2021 on the FDICI index. Some of the scales in which UAE ranked high were; government incentives for investors, enabling environment, technological infrastructure and innovation. Optimism levels regarding the economic outlook for the UAE scored higher in relative terms than those documented last year, placing it among the top five countries in terms of net optimism. The UAE along with Brazil and China were also named as the only three emerging markets on FDICI.
Foreign Direct Investment in Post-Pandemic Economy
The 2021 FDICI rankings displayed a high level of uncertainty about the timeline in which the global economy will recover from the post-Covid situation. In addition to the fall in confidence about the global economic recovery, the overall scores for the top-25 countries have fallen significantly when compared with previous years. Only 57% of investors interviewed were optimistic about the three-year global economic outlook, while more than 72% were confident about it in the year 2020, in a survey conducted before the pandemic began. Investors are more cautious regarding FDI globally as the majority of the countries are still going through economic recovery. The ranking reveals a significant fall in overall optimism about the global economy since pre-pandemic levels in 2020; however, investor optimism about the Middle East and North Africa (MENA) region generally remained stable.
Foreign Direct Investment in UAE
Overcoming Covid-19 situation will be a key to economic recovery and the improvement in FDI inflow. The UAE government has taken several measures to control the Covid-19 outbreak and accelerate the pace of economic recovery. Some of the major initiatives taken by the government include the successful roll-out of Covid-19 vaccines (52.46% of the UAE population is vaccinated), extension of freeze on government fees to support the local economy and businesses, announcement of UAE citizenship and Dh 30 Bn Strategic Programme to Boost the UAE Economy and Dubai Master Plan 2040. This has increased the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. As a result, UAE expects a significant increase in the FDI inflow with the futuristic strategies planned by the government.
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