The UAE’s Securities and Commodities Authority (SCA) has announced that it registered a total of 114 foreign investment funds in 2020, a growth of 147 percent compared to the previous year.
The authority said in a statement carried by state news agency WAM that the growth confirms the UAE’s reputation among foreign investment companies for its attractive investment environment, as well as the facilities and incentives it offers to investors.
In 2016, the number of foreign investment funds registered with the authority was only two, rising to 270 in 2017.
In 2018, the number stood at 164, dropping further to only 46 in 2019, before surging again in 2020.
According to SCA data, the number of registered foreign funds that regularised their status between 2016 and 2020 amounted to 596.
Foreign investment funds registered in the UAE originate from many countries, including the United Kingdom, Switzerland, India, the Cayman Islands, Saudi Arabia and Pakistan.
The figures come after Sheikh Mohammed bin Rashid Al Maktoum (pictured above), Vice-President and Prime Minister of the UAE and Ruler of Dubai, revealed the country’s proactive response to the coronavirus crisis was behind a year-on-year surge in foreign direct investment (FDI).
FDI into the UAE grew by 44.2 percent to $19.88 billion in 2020, despite the economic turmoil caused by the global Covid-19 pandemic.
The total value of FDI inflows amounted to $174 billion, a growth of 12.9 percent from 2019. In 2019, the UAE ranked 24th globally for attracting FDI and it ranked first in Western Asia. For outgoing FDI, the UAE maintained its position as 19th globally.
FDI covered all economic platforms, primarily the oil and gas, considering the massive investment partnerships struck by the Abu Dhabi National Oil Company (ADNOC) with a number of foreign companies. The UAE has also drawn FDI for digital economy, including Artificial Intelligence, Internet of Things, blockchain, medical knowhow, augmented and virtual reality (AR and VR), robotics, self-drive automobiles, renewable energy, innovation and AgriTech, among others.
The UAE currently ranks first in the Arab world and in the region and 15th globally in the Kearney FDI Confidence Index for 2021. It advanced by four ranks compared to 2020, surpassing several major global economies such as Singapore, Australia, Portugal, Denmark, Ireland, Brazil and Finland in the general ranking of the index.
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