The UAE has always lead the Middle East region in terms of investor confidence, and Dubai is the main hub. Dubai’s competitive advantage stems from the fact that it is much safer compared to other Middle Eastern countries; perhaps something that is a result of its political neutrality. It is slightly less bureaucratic and has a sustained high level of investments made in road and rail infrastructure to keep up to speed with the growth in the countries’ economic development.
Pre-crisis, the UAE economy was booming and business opportunities were limitless. The UAE’s investment climate has always been open to foreign direct investment it allows full repatriation of profits. However, according to the Dubai Economic Department’s FDI survey, despite the recession in the UAE, majority investors have not considered shifting their investments elsewhere, unless they suspect fundamental changes to the growth prospects of Dubai and the region. Respondents of the survey were C-level executives and business heads across a variety of sectors, nationalities and countries.
“I have been in Dubai for the last 8 years or so. Investing in this city has changed by business and my life,” says Kabir Mulchandani, entrepreneur and CEO of SKAI Holdings. “Despite all the challenges, I continue to invest in the real estate sector of the UAE because I believe there are clear opportunities for success.”
According to an article in Gulf News, Foreign Direct Investment (FDI) in the UAE is believed to have reached $13.7 billion in 2010 and FDI flow would grow from $1.5 trillion in 2010 to $1.8 trillion in 2014.
Kabir Mulchandani stated: “There are still many challenges to overcome, but with the strength of existing businesses, and the commitment to develop the UAE further, the future of Dubai and the UAE looks promising”.
Kabir Mulchandani