Her Highness announced that Dubai solidified its position as a worldwide cultural hub and investment destination in 2021, ranking first in the MENA region and second globally in attracting foreign direct investment (FDI) in the culture and creative industries (CCI). Chairperson of the Dubai Culture and Arts Authority (Dubai Culture) and member of the Dubai Council, Sheikha Latifa bint Mohammed bin Rashid Al Maktoum. Her Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, stated Dubai’s emergence as a magnet for FDI in the sector has been fueled by His Highness Sheikh Mohammed bin Rashid Al Maktoum’s foresight and directions.
According to the Dubai FDI Monitor report, Dubai attracted 233 new creative economy projects in 2021, according to the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET). Dubai raised its rating from sixth the previous year, surpassing other large cities such as New York, Singapore, and Berlin. The Financial Times’ ‘fDi Markets,’ the world’s top data source on greenfield FDI projects, was used to compile the study.
“These achievements show the maturity and stability of the investment environment in the emirate’s creative economy,” HH Sheikha Latifa stated. By creating a robust ecosystem and superior business-enabling infrastructure for creative entrepreneurs, Dubai has established tremendous FDI opportunities in the industry.
“Dubai has built a vibrant worldwide creative community by cultivating an environment that encourages learning, development, and invention.” The rise of Dubai’s creative economy has been aided by the emirate’s distinctive social fabric, which has evolved from the emirate’s outstanding cultural diversity, as well as its comprehensive human-centered development approach.”
According to the Dubai FDI Monitor, foreign investment in the cultural and creative industries has increased significantly. In 2021, the sector’s expected FDI capital inflow exceeded AED4.9 billion. The increased appeal of the emirate’s creative economy is reflected in the increase in FDI inflow and rankings. With 6,204 new employment created via FDI, Dubai remained the top regionally and fourth internationally in terms of the number of new positions in the creative sector.
A magnet for FDI
HH Sheikha Latifa stated that during the last five years, Dubai has seen a significant increase in FDI capital flows in the creative economy. The emirate’s creative economy received AED50.9 billion in FDI capital inflows for the 2017-21 five-year period, spread among 787 projects. This rise is in line with Dubai’s smart leadership’s directions and initiatives to make the emirate a destination for innovation and talent through innovative infrastructure, rules, and legislation. As envisioned by the leadership, the outcomes are now a practical and long-term reality in the growth journey.
These developments created 32,542 new jobs during a five-year period, according to the Dubai FDI Monitor study. According to data from Financial Times Ltd’s ‘fDi Markets,’ Dubai ranks fifth internationally in terms of projects, eighth in terms of FDI capital flows into the creative sector, and fourth in terms of jobs created during the last five years.
“Dubai’s success in continuously improving the well-being of its citizens, residents, and visitors while also elevating the quality of services provided to them has increased the global creative community’s confidence in the emirate and made it a preferred global business, lifestyle, and entertainment destination,” Her Highness continued.
A cutting-edge global creative economy hub
Her Majesty, The Authority continues to strengthen the foundations to open new possibilities for the many components of the emirate’s creative economy and consolidate its place on the global stage as an excellent investment destination, according to Hala Badri, Director General of Dubai Culture. “At Dubai Culture, we continue to build processes, strategies, legislative frameworks, rules, and policies that enable ease of doing business in creative industries in order to strengthen Dubai’s place on the global creative economy map and promote and recruit talent.” We’re also looking into forming partnerships with government, semi-government, and commercial institutions, as well as specialists, consultants, and representatives from the creative industry, to develop new opportunities that will benefit everyone. We are working to strengthen the emirate’s status as a global destination for cultural and creative investment.”
Despite the pandemic, FDI capital inflows into Dubai’s creative economy grew in 2021, demonstrating the emirate’s adaptability and preparedness to meet any obstacles, foster talent, and assist firms in maintaining their stability, sustainability, and competitiveness, according to Badri.
Mr. President, Dubai’s regional and global preeminence in FDI attractiveness, according to Helal Saeed Almarri, Director General of the Department of Economy and Tourism in Dubai, originates from the leadership’s vision and guidance to establish a diverse economy built on knowledge and innovation. “Investments, advanced technologies, and talent are all attracted to the cultural and creative industries today.” “The sector has played a significant role in Dubai’s achievement of the top global position in luring greenfield FDI projects in 2021,” AlMarri noted.
Dubai’s cultural and creative industries sector, according to Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, has increased its attractiveness to all types of FDI, including greenfield FDI projects, FDI Reinvestment projects, Mergers and Acquisitions (M&As), Joint-Ventures, and New Forms of Investments (NFIs), as well as VC-backed FDI. “The Dubai FDI Monitor data provides a thorough examination of FDI projects in Dubai’s many economic sectors.” It aids in the strategic planning process for increasing Dubai’s FDI attractiveness, as well as FUSpromotion, facilitation, and the provision of specialized and reliable services to the investor community,” Al Gergawi explained.
According to data from the ‘Dubai FDI Monitor,’ Greenfield FDI accounted for 71% of total FDI projects in Dubai’s cultural and creative sectors in 2021, followed by Mergers & Acquisitions (12%), Reinvestment FDI (9%), New Forms of Investments (5%), and Joint Ventures (1%). (2 percent ).
Dubai Cultural is collaborating with its key partners to create a framework that will help the culture and arts sector in Dubai flourish and contribute more to the emirate’s GDP. It is backed up by the complete implementation of Dubai Culture’s founding law, which establishes the agency’s position as a policymaker, regulator, and enabler in the emirate’s cultural sector.