UAE is a major destination for foreign investment flows2019-01-28
KUWAIT CITY – The UAE has been a major destination for foreign direct investment inflows of nearly $ 11 billion in 2017, accounting for 22 per cent of total foreign direct investment flows in the Middle East and North Africa region, the report said.
FDI inflows in Dubai rose by 26 per cent in the first half of 2018 to $ 4.84 billion from the same period in 2017, according to the Dubai Investment Development Corporation.
The investment law, which seeks to allow the foreign investor to acquire a 49% stake in the capital of companies and projects in some sectors, has also entered into force, a new step towards enhancing the flow of foreign direct investment to the country.
In the nine months of 2018, corporate profits in the UAE rose by 13.3% over the same period of 2017. According to the latest estimates by the International Monetary Fund, GDP growth in the UAE is expected to grow by 3.7% in 2019.
Given the high solvency and massive reserves in the face of increased investment needs with the establishment of Expo 2020, the government is strongly focused on providing economic incentives. The adoption of VAT in 2018 was a remarkable move that is expected to significantly boost and diversify government revenues in the coming years.