The UAE must pay greater attention to developing improved foreign direct investments (FDI) strategies to increase productivity and enhance national competitiveness, said a top official.

The UAE must pay greater attention to developing improved foreign direct investments (FDI) strategies to increase productivity and enhance national competitiveness, said a top official at the Annual Investment Meeting (AIM 2017) which opened yesterday (April 2) in Dubai, UAE.

Senior government officials, global business leaders and industry experts are taking part in the 7th edition of AIM 2017. The three-day event will run until April 4, at the Dubai World Trade Centre, and will provide an array of dynamic business opportunities to participants.

Sultan Al Mansouri, the UAE Minister of Economy, during his opening speech, said: “FDI is a major driver of economic growth and sustainability. The world economy has seen a surge in FDI flows over the past decades, and it is clear that both developed and developing countries are working hard to develop favourable policies and incentives to attract more foreign investments.

“In 2015, global FDI inflows increased by about 40 per cent to $ 1.8 trillion. However, this growth did not indicate to a similar increase in productive capacity in other countries. In order to accomplish the positive outcomes that can be achieved through FDI, such as job creation, skills and knowledge transfer, nations must create a clear vision and concrete agendas for a more competitive economy,” he said.

“In contrast to 2015, FDI inflows in 2016 have shrunk to $1.5 trillion. This decline was more pronounced in emerging markets than in developed economies. As a result, emerging markets face increasing challenges to attract global FDI. To succeed in our efforts, decision-makers in emerging markets must recognize the different motivations and incentives of foreign investments in different sectors, which require a mix of differentiated policies to maximize the potential benefits of FDI,” noted Al Mansouri.

He said: "The Ministry of Economy is honoured to organise this important forum, the world’s largest annual gathering on FDI held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

“This forum has become a valuable platform for sharing knowledge and best practices in both emerging and developed markets, bringing together decision makers, investors, academics and entrepreneurs under one roof,” he added.

“According to the ambitious economic policies adopted by the UAE and expressed by the 2021 vision of the UAE to build a competitive economy based on knowledge and innovation, the UAE has become a regional and global hub for investment and business, as well as a source of huge investment flows to a large number of countries in the world,” he said.

“The UAE ranked 16th in the Global Competitiveness Report in 2016-2017, thus the most competitive position in the region. The UAE is also the largest investment-attracting country in the Middle East and North Africa region, according to UNCTAD's Global Investment Report 2016,” he added.

“This competitive position has not been achieved by chance, but instead through determination and hard work. Achieving it also required a clear vision of leadership, strategies, teams, performance indicators, continuous follow-up, learning and benefiting from the experiences of other countries, and through interaction and cooperation of the private sector in building sustainable partnerships. This is what makes the UAE the second largest Arab economy and the most diversified economy in the region,” he said.

“In order to witness sustainable economic growth, we must continue to invent ideas, create plans which did not exist previously and to always look ahead and continue to manufacture solutions to our most challenging obstacles,” he emphasised.

“Today, the world is highly interconnected and affected by any changes happening in any part of the world. Therefore, causing some societies to stand still and feel unable to cope with these rapid changes. Thus, collective and collaborative efforts between governments and private sectors are essential to overcome the challenges and to build a secure, stable and prosperous future for the citizens of the world to live in,” he said.

Key government departments and government related entities presented their investment plans with opportunities for private sector to participate. The three-day Forum is expected to result in a number of landmark agreements amounting to significant levels of new investments, potentially generating economic growth for all participating countries, said a statement.

Topics under discussion at the forum included current investment climate, special development zones in the country and investment opportunities in participating countries among many others.
 
Held under the theme ‘International Investment, Path to Competitiveness & Development’, this year’s edition of the event gathers a wide range of attendees including renowned personalities, key decision makers in industry, finance and politics from the Middle East and North Africa (Mena) region and around the globe.

The international forum is hosting 100 high-level officials, 500 exhibitors and more than 100 media partners, it stated. – TradeArabia News Service