Finance & Capital Market

US companies in UAE increase by 6pc in 2 years

The number US companies' foreign branches operating in the UAE grew from 270 branches in 2016 to 286 by the end of 2018, marking an increase of six per cent, a media report said.

In 2018, the UAE Cabinet issued a new Foreign Direct Investment Law in a bid to enhance and develop the country's business investment environment, allowing 100 percent foreign ownership by global investors in designated sectors within the UAE, reported Emirates news agency Wam.

The Ministry of Economy also established a Foreign Direct Investment (FDI) Unit, with a mandate to propose and implement FDI policies that facilitate investment.

UNCTAD's 2019 World Investment Report revealed a slight increase in FDI inflows to $10.385 billion in 2018 (some 12 percent of gross fixed capital formation) compared to 2017 figures ($10.354 billion). FDI stocks for the country reached $140.319 billion in 2018, representing 33 percent of the UAE's gross domestic product, according to UNCTAD.

The report considered the UAE among the top 10 most important sources of FDI for the 2019 to 2021 period.