Creative industries in Dubai are Highest Global Grossers for FDI
Abu Dhabi plans to invest extensively in its cultural and creative sectors over the next five years in order to diversify its economy away from oil, create new employment, and attract talent. The aim is to unite the traditional elements of the cultural sector with the state-of-the-art creative domain and establish a multidisciplinary business environment that supplements growth and development.
As a preliminary step towards this cause the emirate opened the Louvre Abu Dhabi in 2017 which has drawn attention to local artworks and artisans from world over. Additionally, Abu Dhabi is also offering creative visa to ease the entry of skilled professionals and encourage new talent and tourism inflow.
As the emirate’s economy continues to recover from the coronavirus pandemic, Dubai was ranked first in the world for attracting foreign direct investment projects in 2021 and second for luring corporate headquarters. When looking from a global point of view as well sources indicate that the emirate attracted 233 creative economy projects last year, exceeding New York, Singapore, and Berlin.
By generating FDI opportunities in the industry and developing a solid ecosystem and superior business-enabling infrastructure for creative entrepreneurs, Dubai has established itself as a trusted worldwide lifestyle and business destination.
Abu Dhabi announced intentions to invest Dh22 billion in its cultural and creative sectors over the next five years as part of its diversification strategy to create new employment and attract talent in June of last year. According to government officials, the cultural and creative sectors will play a significant part in the UAE’s development during the next 50 years. It is the first 10-year strategy in the Arab world for boosting these two sectors. In the cultural and creative industries, foreign investment has grown significantly according to data from Dubai FDI Monitor.
In Dubai, foreign investment amounted to Dh50.91 billion over the period 2017-2021, with the US ranked highest in FDI capital inflows based on data from Financial Times’ fDi Markets, based on greenfield FDI projects. In the last five years, FDI capital has flowed to Dubai’s creative economy at a remarkable rate, Sheikha Latifa said.
The best performing FDI projects in Dubai’s cultural and creative industries were greenfield FDI projects (71%), mergers and acquisitions (12%), reinvestment (9%), new forms of investment (5%) and joint ventures (2%) according to data from Dubai FDI Monitor.
According to Hala Badri, Dubai Culture director general, FDI into Dubai’s creative economy increased despite the Coronavirus pandemic in 2021. In doing this, the emirate has demonstrated its flexibility and readiness to face any challenge, cultivate talent and help businesses maintain stability, sustainability, and competitiveness.”
Last year, Dubai ranked first in the Middle East and fourth globally for the number of jobs created through FDI, the statement said. In today’s culture and creative industries, investment, advanced technologies, and talent are among the most attractive,” Helal Almarri, director general of Dubai’s Department of Economy and Tourism, said.