Dubai has maintained its status as one of the world’s most preferred foreign direct investment (FDI) destinations in the first half of 2020 despite the economic and business repercussions of the COVID-19 crisis and the significant global decline in greenfield FDI flows.

The emirate remained at the forefront of cities in the Middle East and North Africa (MENA) region in attracting FDI. Globally, it ranked third in the number of greenfield FDI projects and fourth in FDI capital flows, according to Financial Times’ fDi Markets, which records data on capital flows and greenfield FDI projects around the world.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai said: “The sustained FDI flows in H1 2020 reflect the  continued attractiveness Dubai’s investment environment, and its success in combating the COVID-19 pandemic and starting the recovery phase in record time. Dubai has further enhanced its ability to attract investments into emerging opportunities in strategic and new sectors and enhanced its pivotal role as a global economic hub.”

FDI continued to flow into Dubai in H1 2020, with the number of announced FDI projects reaching 190, worth an estimated capital of AED12 billion. Key sectors that attracted FDI projects included technology, e-commerce, and the pharmaceutical industries, according Data from ‘Dubai FDI Monitor’ released by the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development in Dubai(Dubai Economy).

The USA topped the list of source countries in terms of FDI capital flows to Dubai in H1 2020 accounting for 25% of the total, followed by France (18%), Belgium (9%), and UK and China (8% each). These five countries together accounted for 68% of total FDI capital flows to Dubai.

Dubai ranked first in the MENA region and 11^thglobally among the top 20 most popular destinations for venture capital investments according to the fDi Markets’ Global Venture Capital FDI Ranking 2020 report. Investment flows into Dubai-based start-ups exceeded AED739 million in the first six months of 2020, according to ‘Dubai FDI Monitor’ data.

Dubai was also placed seventh globally among the top 10 global cities in the rankings of the ‘FDI Aerospace Cities of the Future 2020/2021’, and second globally in FDI performance in the sector. Data showed a 53% increase in medium and high technology investments inH1 2020, compared to the same period last year, as per the Organisation for Economic Cooperation and Development’s (OECD) methodology.

The emirate has emerged as one of the world’s leading investment destinations in terms of crisis preparedness and resilience, thanks to the policies and measures adopted to navigate the impact of the COVID-19-crisis . H1 2020 data from the Dubai FDI Monitor showed the efficiency and speed of the Dubai government and its free zones in facilitating the process of establishing and licensing investment projects and companies. As part of its after care programme, Dubai FDI has developed a number of new digital services, and provided information, data and support services to help investors mitigate the impact of the COVID-19 crisis.