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BCN-07
UAE-ECONOMY
UAE sets up special unit to lure foreign investors
ABU DHABI, Oct 30, 2018 (BSS/AFP) – The United Arab Emirates announced
Tuesday the establishment of a special unit at the economy ministry to help
lure foreign investors amid an economic slowdown.
The establishment of the foreign direct investment unit was ordered by
President Sheikh Khalifa bin Zayed Al-Nahyan in a decree.
The order stipulates that foreign investment firms which secure licences
under the decree will be treated like national companies, significantly
cutting back red tape.
Last year the UAE attracted more than $10 billion in foreign direct
investment, continuing a trend in recent years of having the largest FDI
inflows among all Arab states.
The presidential decree aims to go further still, with the new unit to
propose policies to improve the investment environment and attract more FDI.
The measure by the Middle East’s second largest economy after Saudi Arabia
comes amid a slowdown in the oil, tourism and real estate sectors.
In May the UAE announced new incentives to lure foreign investors, granting
100 percent ownership of companies and a 10-year visa for professionals and
investors.
The following month Abu Dhabi, one of the UAE’s seven emirates, announced a
50 billion dirham ($13.6 billion, 11.6 billion euro) stimulus package over
the next three years.
Although the UAE has the most diversified economy in the Gulf, it remains
highly dependent on oil revenues.
Growth fell to just 0.5 percent last year, down from 3.0 percent in 2016
according to the International Monetary Fund, driven by a 2.5 percent
contraction in the oil sector.
Abu Dhabi’s economy contracted by 1.6 percent last year and was projected
to grow by just 0.5 percent in 2018.
The IMF has forecast growth of 2.9 percent for the UAE this year, followed
by 3.7 percent for 2019.
BSS/AFP/SR/1740 HRS