Attracting
International Investors
Despite its vast oil wealth, Abu Dhabi is trying to
attract foreign direct investment. The majority of
countries that seek to attract FDI do so in order to
create employment and benefit from the tax revenues
and rents accrued once the investing company’s
operations are up and running within their borders.
Not so with Abu Dhabi, as it does not need money
from foreign investors per se. It does however, need
know-how.
The imperative of diversifying the Emirate’s economy
away from reliance on oil revenues means that there
are a number of strategic industries in which Abu
Dhabi would like to be more heavily involved.
“The Emirate seeks to reduce dependence on oil, and
there is growing recognition of the need to promote
foreign investment as one of the instruments of
economic diversification.” - Statistics Centre Abu
Dhabi.
There is a deficit of expertise throughout a multitude
of industries and Abu Dhabi is intent on addressing
this by using its wealth to attract the brainpower it
requires. As a result, foreign direct investment in
certain sectors is welcomed with open arms.
Sectors that routinely attract FDI in Abu Dhabi
are real estate, water and electricity, financial
intermediation and insurance, construction,
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manufacturing, mining and quarrying, transport and
communication, hotels, wholesale and retail trade.
According to the Statistics Centre of Abu Dhabi,
“Classifying FDI by countries of origin, the UK
topped the list of countries investing in the Emirate
of Abu Dhabi, accounting for 23.7% (approximately
AED 7,453.9 million – over $2 billion USD) of
total FDI in the Emirate, followed by Austria, which
invested AED 1,585.2 million or $435 million USD
(5.04%) and Japan and Libya, which invested, AED
1451.3 million (over $395 million USD) and AED
1116 million (nearly $304 million USD) or 4.61%
and 3.55% of total FDI for 2007, respectively.”