The UAE has an open door policy to attract foreign investments and the government is taking the necessary steps to establish the rules that facilitate investments, said Sheikha Lubna Al-Qasimi, UAE minister of foreign trade, while giving details of the Annual Investment Meeting (AIM) being held from April 30 to May 2 at Dubai International Convention and Exhibition Center (DICEC).
“Our open door policy is the reason why the UAE was ranked second among Arab countries attracting foreign investments in the last decade after Saudi Arabia which was ranked first,” Sheikha Lubna added.
“Foreign direct investments (FDI) flowing into the UAE amounted to $ 7.7 billion of the total amount of FDI to GCC countries, which was $ 26 billion in 2011, according to the World Investment Report 2012 issued by the United Nations Conference on Trade and Development (UNCTAD). This is an additional incentive to push us to work better on offering the suitable environment to double this number in the years to come by taking advantage of the UAE’s competitive advantages at the global level,” she added.
“The Annual Investment Meeting is in line with the ministry’s continuous approach to adopt innovative initiatives and programs that would improve the UAE’s reputation at the regional and international levels as one of the leading countries in the Middle East,” Sheikha Lubna added.
“Many foreign companies and investors consider the UAE as a safe haven for investments at a time when other countries in the region are witnessing political and security turmoil. The UAE is safe and is politically stable. It also has a strong infrastructure and is considered a leading hub for trade, logistics and services in the region,” Sheikha Lubna said.
She pointed out that the UAE is ranked fourth, globally, in EC Harris Built Asset Consultancy’s "Infrastructure Investment Index", which is a report that ranks 40 countries across the globe according to how attractive they are to infrastructure funds.
“There are significant and radical changes in the source, direction and flow of foreign direct investments. According to the World Investment Report 2012 issued by the UNCTAD, the global rate of FDI in 2011 has exceeded the average that was registered prior to the economic crisis, reaching $ 1.5 trillion despite the challenges facing the global economy. Whereas the rate of FDI increased in 2011 among economic blocks, developing countries attracted 45 percent of global investments,” she added.
Meanwhile, a report said that the UAE maintained its position as the second largest Arab economy in 2012 after its gross domestic product (GDP) swelled by $ 23 billion in current prices.
The report by the Washington-based Institute for International Finance (IIF) showed the UAE has remained the second largest Arab economy after Saudi Arabia for more than 10 years because of a steady and rapid growth in its GDP as a result of high public spending, a surge in oil prices and a steady increase in private sector investment.
The report showed the UAE's GDP grew to its highest ever level of around $ 375 billion in current prices last year from $ 352 billion in 2011, an increase of about 6.5 percent. The 2012 GDP was more than double its level of nearly $ 181 billion in 2006.
IIF, which groups major banks in Western countries, said Saudi Arabia remained the largest economy in the region with a GDP of around $ 640 billion in 2012 mainly because of its massive oil output which reached one of its highest annual averages of 9.8 million bpd last year.
The report showed the UAE's economy accounted for more than a quarter of the GCC’s GDP of $ 1.482 trillion in 2012 and nearly 14 percent of the combined GDP of MENA countries.
Egypt emerged as the third largest Arab economy with a GDP of around $ 257 billion, followed by Algeria with $ 197 billion, Qatar with $ 182 billion and Kuwait with around $ 178 billion.
Despite the massive increase in its population over the past years, the UAE maintained its position as one of the richest nations and the third in the Arab region, with its per capita reaching one of its highest levels of $ 45,731 in 2012, according to IIF, which ranked Qatar and Kuwait in the first and second wealthiest Arab countries. IIF expected the UAE economy to continue its rise to reach $ 395 billion in 2013 and $ 410 billion in 2014.
UAE open door policy triggers investment flow
