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Dubai likely to see 15pc rise in FDI this year

DUBAI, November 19, 2014

Foreign direct investment (FDI) in Dubai, propped up by key segments such as services and logistics, is likely to grow by 10-15 per cent this year as against 2013, said an industry expert.

The focus on growth was coming with mega projects announced by the government, Fahad Al Gergawi, chief executive of Dubai FDI, was quoted in the Gulf News report.

A year ago, Dubai won the bid to host the World Expo 2020, a six-month trade event that is expected to attract 25 million visitors.

Projects worth Dh30 billion ($8.1 billion) are expected to be built across Dubai to further enhance the emirate’s infrastructure in time to host the event, according to the recent Business Year: Dubai 2014 report.

The government has earmarked $1.73 billion ($470 million) for new infrastructure projects over the year, as per the report.

Expo 2020 is likely to create up to 100,000 new jobs over 2015-2021, and add 0.5-0.6 percentage points to gross domestic product (GDP). Dubai’s GDP grew by 4.6 per cent in 2013, with DED expecting that to rise by 4.7 per cent in 2014, according to the report.

Other indicators that are keeping investors interested are private consumption expected to rise at an average rate of 7.8 per cent until 2015, and retail sales likely to grow by 32.9 per cent to $41.1 billion in parallel, said Gulf News.

Some of the sectors that have attracted investments include trade, services, aviation and logistics, Al Gergawi said, hinting at a rise in investment in entertainment and hospitality projects.

The main countries investing in Dubai are the US, UK, India, Switzerland and Saudi Arabia, he said, adding that overall, UAE’s FDI is expected to be valued at $14.4 billion in 2014, up 20 per cent from $12 billion in 2013.




Tags: Dubai | FDI | foreign investment |

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