19 July 2023, Gulf Business
Abu Dhabi’s Department of Municipalities and Transport (DMT) has reported that the emirate’s real estate sector saw Dhs834.6m in foreign direct investment (FDI) by individuals in H1 2023.
This represents a robust rise of 363 per cent compared to the same period in 2022. According to data released by the DMT, the following five regions topped the list in terms of the highest shares of FDI by individuals:
Saadiyat Island with 34 percent
Yas Island with 28 percent
Al Jurf with 12 percent
Al Reem Island with 11 percent
Al Shamkha area with 8 percent
Dr Adeeb Al-Afifi, executive director of the Real Estate Sector for the Department of Municipalities and Transport, said: “The astounding 363 per cent growth [in FDI] witnessed during the first half of this year is testament to the emirate’s exceptional appeal to foreign investors.
“Abu Dhabi’s investment climate, bolstered by encouraging incentives and robust legislative and regulatory frameworks, has created a nurturing and stimulating environment for foreign investors pursuing promising prospects in the real estate market. Moreover, the emirate’s unwavering commitment to adopting sustainable development policies, innovation, economic diversification and environmental sustainability has significantly enhanced its ability to attract foreign direct real estate investments.”
Dr Al-Afifi added the emirate would continue to build a comprehensive and enticing real estate ecosystem for foreign investors, characterised by streamlined processes and seamless government service experiences that facilitate the foreign direct investments.
Rise in FDI into the UAE
In other news, FDI into the UAE increased by 10 per cent to $23bn (Dhs84bn) in 2022, compared to the previous year despite a plunge in global FDI activity.
The latest data from the United Nations Conference on Trade and Development (UNCTAD) ranked the UAE 16th in the global rankings for FDI attraction, up six places compared to 2021.
The UAE remains the leading recipient of global FDI in the GCC, attracting 61 per cent of all FDI committed to the region last year, according to the UNCTAD’s World Investment Report 2023 report. The Emirates is also ranked the fourth largest recipient of greenfield investment projects in the world with a total of 997 projects, after the US, the UK and India – an 80 per cent growth compared to 2021.