The importance of Foreign Direct Investment and its effect on economic growth is well acknowledged. There exists a high competition in the world market in order to attract these investments to speed up their development efforts.
Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth and it is given much consideration when it comes to investors decision making, as it plays a major role in improving efficiency and productivity.
Studies show that increase level of ICT leads to an increase in FDI in developed countries. Besides market size and trade openness variables, availability and reliability of good ICT infrastructure improves the climate for attracting FDI inflows.
“The UAE has invested heavily in ICT infrastructure” said Ahmed Al Zarouni, VP IT at the Investment Corporation of Dubai and CIOMajlis Board Member. “The advanced ICT infrastructure allows the country to improve government-to-government and government-to-citizens transactions, increase efficiency across a range of industries and attract international investments.”
Dubai recorded Dhs24.7bn worth of foreign direct investment (FDI) in 2020 across 455 projects, according to data from the Dubai FDI Monitor released by the Dubai Investment Development Agency (Dubai FDI), an agency of Dubai Economy.
The UAE is very keen on developing its capabilities in the field of ICT and is continuously undertaking many measures to achieve that. The country established tech related free zones to support technology companies and boost technological advancements which drive today the economic growth. It also set up various funds which were allocated in various projects in ICT sector.
The UAE government is very strong in using ICT tools not only to deliver services in quick and easy manner but also to provide customized services. Lot of initiates were launched to stimulate and enrich the culture of innovation with an aim to develop the government operations and enhance the UAE’s competitiveness. Besides, multiple tech event are held in the UAE, which provide platforms for discussing ICT related topics and present the latest in ICT technology.
“The UAE is a growing epicenter of information technology and CIOMajlis play a significant role in promoting the UAE digital success and attracting foreign investments.” Concluded Ahmed Al Zarouni.