Dubai's tourism sector attracted $1.7 billion of FDI through 30 FDI projects in 2021
DUBAI - Dubai has retained its first place in the world in attracting foreign direct investment (FDI) in tourism in 2021.
According to FDI Markets data from the Financial Times, a leading global data source on cross-border investments in new projects, with an FDI volume of 6.4 billion dirhams during the year, Dubai ranked first in terms of FDI capital, projects and job creation in the tourism sector in 2021.
His Excellency Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, highly appreciated the exceptional leadership and visionary policy of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, for Dubai's outstanding achievements and its status as a world-leading direction of FDI in tourism in a difficult year for the sector worldwide.
Sheikh Hamdan expressed his gratitude to the vision of His Highness Sheikh Mohammed bin Rashid to create a sustainable financial, economic and social ecosystem, which served as an example for others to follow, noting that Dubai's status as the main destination of FDI for tourism confirms the role of the sector as a key economic factor that offers international investor confidence and an exceptional opportunity to obtain stable and sustainable profits.
He explained that Dubai's favorable infrastructure, business-friendly policies and flexible regulatory environment that meets the needs of global investors will allow Dubai to remain at the forefront of global FDI destinations, adding that Dubai's world-class infrastructure and exceptional services for investors strengthen its strategy to become a global leader. the best city to live, work and visit.
The ranking of "FDI Markets" cities is based on investment destinations that attract 10 or more new FDI projects per year. In 2021, Dubai's tourism sector attracted 6.4 billion dirhams (US$1.7 billion) of foreign direct investment through 30 FDI projects. New investments and projects created 5,545 new jobs during the year, according to the Dubai FDI Monitor report published by the Dubai Investment Development Agency (Dubai FDI), an agency of the Dubai Department of Economy and Tourism (DET).
This outstanding indicator of FDI marked a significant year for Dubai. In 2021, the city led to the revival of global travel and tourism after COVID-19, celebrated the Golden Jubilee of the UAE and welcomed the world at Expo 2020 Dubai, becoming one of the safest destinations in the world.
This year was also marked by a successful five-year period during which Dubai was ahead of leading international cities, including London, Paris and Shanghai, in attracting FDI in tourism. Dubai's tourism sector attracted 83.5 billion dirhams (US$22.8 billion) in FDI through 205 FDI projects during 2017-21, creating 30,082 new jobs.
Dubai received 7.28 million international overnight visitors in 2021, up 32 percent from last year, and underscores the city's efforts to become the most visited place in the world.
The exceptional success of Expo 2020 Dubai, the largest global event of its kind, which attracted more than 24 million visitors, followed the achievement of Dubai, which was selected as the most popular destination in the world by Tripadvisor Travelers’ Choice Awards 2022.
Helal Said Almarri, CEO of DET, said: "Dubai has created a unique tourist offer in accordance with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to promote Dubai as the most sought-after city in the world and the most attractive place to live, work, visit and invest. Reinforcing its advantages as a well-connected hub with world-class infrastructure, attractions and lifestyle, Dubai has also made concerted efforts in key markets to demonstrate its capabilities in driving business growth and as a leading global tourism hub. Dubai's top ranking reflects the effectiveness of campaigns covering different geographical regions and its diversified offering in different sectors."
High investor interest in Dubai's tourism sector complemented Dubai's net profit as an investment destination in 2021. The total volume of FDI capital inflows to all sectors of Dubai exceeded 26 billion dirhams out of 618 announced FDI projects in 2021, with a growth rate of 5.5 percent compared to 2020.
"The rapid and effective measures taken in the face of the pandemic have greatly contributed to the positioning of Dubai as a preferred destination for global investors. Foreign investments coming into the tourism and hotel business sector of Dubai and stimulating the development of new attractions and destinations are evidence of the sustainability and attractiveness of Dubai's economy, as well as the trust that the city evokes among residents, guests and the global investor community. The new policy and legislation adopted to bring the UAE economy in line with world events, as well as long-term accommodation offered to investors and entrepreneurs, will allow Dubai and its tourism sector to maintain the dynamics of FDI until 2022 and beyond," Almarri added.
In 2021, the largest legislative changes in the history of the UAE took place: more than 40 laws in all areas were updated and reformed to simplify business and ensure unhindered entry for investors. In 2021, a five-year multiple-entry visa was introduced for employees of multinational companies in addition to previously launched initiatives. These include the popular Golden Visa initiative aimed at investors, entrepreneurs and talented professionals, as well as virtual work and retirement programs in Dubai.
Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, said that the steady flow of international investment in tourism strengthens Dubai's status as a magnet for talent from around the world. "Dubai's first place in terms of the number of jobs created through FDI in tourism proves that the exemplary investment environment created by the city will continue to attract, retain and increase financial and human capital."
The Dubai 2040 Urban Master Plan will further strengthen Dubai's reputation as a global destination for business, investment and tourism. Dubai 2040 is a comprehensive roadmap aimed at aligning strategic economic priorities and future needs with sustainable development, improving the quality of life of residents and visitors of the city.
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