Dubai has solidified its position as the world's leading magnet for foreign direct investments (FDI) focused on establishing new ventures, according to the Financial Times' fDi Markets data. For the third year in a row, Dubai clinched the top spot in attracting greenfield FDI projects in 2023. Greenfield projects involve entirely new investments on undeveloped land.
Dubai's dominance is further underscored by its success in attracting FDI across several key sectors. The emirate secured the number one position for greenfield FDI projects in consumer goods, energy, e-commerce, and tourism. This achievement highlights Dubai's ability to cater to a diverse range of industries, fostering a dynamic and multifaceted business environment.
The data reveals a staggering growth trajectory for Dubai in attracting greenfield FDI projects. Over the past five years, Dubai's global market share for such projects has more than tripled, surging from 1. 7% in 2019 to a commanding 6% in 2023. This remarkable growth indicates Dubai's strategic initiatives to establish itself as a global business hub are proving highly successful.
Dubai's attractiveness as a business destination extends beyond greenfield projects. The emirate also retained its top ranking for the second consecutive year in attracting foreign company headquarters. In 2023, Dubai welcomed a significant 60 HQ FDI projects, significantly outpacing Singapore (40 projects) and London (31 projects). This trend reflects Dubai's commitment to providing a competitive and supportive environment for international businesses to establish their regional or global headquarters.
The positive FDI outlook for Dubai translates into job creation as well. Dubai climbed to fourth place globally in attracting FDI that generates new jobs, up from fifth place in 2022. This translates to a significant boost for the emirate's workforce, fostering economic growth and development.
Dubai's economic diversification efforts are paying off, as evidenced by the surge in FDI across various sectors. The emirate's strategic location, world-class infrastructure, and investor-friendly policies have all contributed to its remarkable success in attracting foreign investment. With its sustained focus on economic transformation and globalization, Dubai is well-positioned to maintain its leading role in the global FDI landscape.
