ABU DHABI,14th January 2017 (WAM) – The growth of Foreign Direct Investments (FDIs) in the Emirate of Abu Dhabi in 2016 has hit 8% equaling AED 95.145 billion compared with AED 88.95 billion in 2015.
The new figures came in the estimation of the annual report on Direct Foreign Investment in the Emirate of Abu Dhabi, issued by the Statistics Center – Abu Dhabi (SCAD) for 2016. The results indicated that 20.2% or AED 19.182 billion of FDIs have gone to manufacturing industries, with a growth rate of 11.2% compared to 2015 when manufacturing industries received 19.5% of FDIs, or AED 17.204 billion.
Investments in real estate activities, including “real estate sales to non-residents”, has taken 25.2% of FDIs or AED 24.007 billion in 2016 compared to 27% of the total DFI, or AED 23.793 billion in 2015.
The estimates has shown an increase in FDIs in financial and insurance activities, from AED 13.338 billion in 2015 to AED 14.672 billion in 2016, with a growth rate of 10% in 2016. These activities were responsible for 15.1% of the total FDIs in 2015 and for 15.4% of FDIs in 2016.
SCAD’s report noted that the share of the extracting industries (including crude oil and natural gas) in FDIs has grown by 11% in 2016, from AED 8.354 billion in 2015 to AED 9.273 in 2016 respectively accounting for 9.5% and 9.7% of the total FDIs.
Khalifa bin Salem Al Mansouri, ADDED Acting Undersecretary, stressed that these results reflect considerable awareness among investors and their interest in capturing the promising investment opportunities provided by the government of Abu Dhabi, thanks to its commitment and determination to proceed with its development projects across all sectors, commending Abu Dhabi government’s ability to develop policies that attract FDIs using a variety of tools and incentives.
“The results of SCAD’s annual report on Foreign Direct Investments in the Emirate of Abu Dhabi for 2016 reflects the efforts exerted by relevant local government bodies in managing and implementing FDIs-related policies and incentives and how Abu Dhabi’s present FDIs policies and incentives are on par with international commitments,” he added.
Al Mansouri stressed that the government of Abu Dhabi is putting intensive efforts to motivate foreign capital to invest in the local economy, including for example the improvement of services, developing the performance of corporate, legal and procedural structures, enabling the private sector’s effective involvement in the various economic activities and developing specialized industrial zones that would enable all investors to start their various projects.
Al Mansouri noted that the value of the Transparency General Index in FDIs polices in the Emirate of Abu Dhabi, issued by ADDED in 2016 scored 71.9 points out of 100, compared to 71.5 points in 2015, which reflects investors’ recognition of the transparency of the policies adopted by Abu Dhabi government and the emirate’s wise policies that form a key incentive to attract FDIs to the emirate.
Butti Ahmed Mohammed Al Qubaisi, General Director of the Statistics Center – Abu Dhabi (SCAD), said that this significant growth in FDIs in the Emirate of Abu Dhabi reflects the extensive efforts of Abu Dhabi government to promote the private sector’s role and effectiveness in diversifying the economy and boosting development.
He stressed the commitment of Abu Dhabi government to generally develop the business environment and enhance the emirate’s competitiveness in light of the emirate’s achievements in 2016. He commended governmental efforts in this respect within the overall Abu Dhabi Economic Vision 2030.
He concluded by saying that there is growing awareness of the necessity to encourage foreign investment as a tool of economic diversification as Abu Dhabi has mobilized all its potential to prepare the necessary infrastructure to support economic development at all fronts