Special Features
Foreign Investments in Dubai
“The UAE received $ 18 billion in foreign direct investments (FDI) in 2005, double the previous year. The country will remain attractive to international investors since it allows 100% foreign ownership in the free trade areas.” HE Shiekha Lubna Bint Khalid Al Qasimi, Minister of Economy & Panning There are 20 free zones that play a major role in attracting investments to Dubai and there are another half-a-dozen free zones underway. These free zones constitute a vital part of the local economy, as well as a main regional hub covering the GCC region.Venture Capital and private equity are an integral part of a robust financial sector. The private equity in UAE increased by $ 2 billion by the end of 2005.
As further recognition of Dubai’s ever increasing rate of expansion and level of sophistication, the Chartered Institute of Arbitrators has approved the establishment of a UAE branch, in Dubai for its members.
“Dubai promotes a secure, attractive environment for foreign investment. It eliminates the red tape that slows business. It creates incentives for young entrepreneurs including women. It invests in infrastructure and it creates a tourism industry that attracts millions of travelers, some of whom like the country so much they consider location business here” The New Republic The Growth Competitiveness Index, released by the World Economic Forum, ranks the UAE as the 5th worldwide in the macroeconomic management index, after Singapore, Norway, Denmark and Finland.
Family companies represent nearly 92% of the privately held companies in the UAE. The Dubai Chamber of Commerce and Industry (DCCI) has statistics indicating that there are 56,374 companies operating in Dubai, including 30,769 family businesses.
UAE attracts more than 25% of foreign direct investment in the GCC.
Dubai Investments is a world-class company that invests in viable and profitable entities. It is the largest investment company listed on the Dubai Financial Market. Its prudent use of capital and sound management skills enables it to establish, acquire or strategically participate in successful corporate ventures throughout the region.
“In 2005, Dubai Investments registered profit growth of 116% to reach AED 666 million ($ 181 million), compared to AED 309 million in 2004.The company’s overall income increased 69.4% to reach AED 1.525 billion against AED 900 million in 2004. Total assets reached AED 3 billion in 2005 compared to AED 2.25 billion the previous year, a 34% increase. The return on capital increased from 43% in 2004 to 78% in 2005.” Khalid Bin Kalban, Managing Director & Chief Executive Officer, Dubai Investments Dubai Investments has reported exceptional results for the first quarter of 2006, with consolidated total income of AED 460 million ($ 125 million), which is 103% more than the total income of AED 227 million ($ 61 million) for the same period in 2005. The net profit for the period was AED 253 million ($ 69 million), which is 360% more than the net profit of AED 55 million for the same period in 2005.
Dubai Investments Park (DIP) is a subsidiary of Dubai Investments and a major industrial, business, residential and recreational development. DIP’s major attraction for investors is the long-term leases, renewable up to 99 years that are available for industrial, commercial and residential projects. The park consists of 4 business zones including the Industrial Zone, Commercial Zone and the Residential & Recreational Zone. It also hosts leading international schools, thus making it like a mini-educational zone.
More and more, Dubai is becoming home to the regional head offices of international firms such as Microsoft Corporation, DaimlerChrylser and Oracle Corporation.
Readers of Private Equity International (PEI) magazine from around the world has voted Abraaj Capital, the largest private equity firm in the Middle East, North Africa and South Asia region as the “Middle East Priv
