The UAE’s small and medium-sized enterprises need access to international investment to support the sector’s growth and in Dubai this week some of the country’s most promising entrepreneurs have been lined up to pitch their ideas to the global investors, economists, ministers and experts who control where that critical funding is deployed.
The seventh Annual Investment Meeting (AIM), which starts today and runs until Tuesday at the Dubai International Convention and Exhibition Centre, is expected to attract 150,000 attendees from 140 countries, including 500 exhibitors.
“Beyond access to capital, foreign investment can offer SMEs critical access to new technologies, which cannot always be achieved through domestic investments or trade,” said Neeraj Agrawal, the executive director of Crescent Enterprises and group chief financial officer of Crescent Group. “Foreign investors with specific strategic leverage and industry know-how can often bring a unique combination of capital, skills and experience to the table.”
At AIM, 25 start-ups from across the world, including some from the UAE such as Scout My Car, the vehicle inspection company; My Trip Photo, a self-service photography service for the hospitality sector; and Malek-e, which produces wearable GPS trackers for children, have been invited to pitch on April 3.
“Foreign investments are attractive to local start-ups, not just because of the injection of capital, but more importantly for access to new markets and mentorship,” said Abdulrahman Abdi, the senior manager for product development at The Cribb, the co-working space in Al Quoz that also mentors start-ups. “Foreign investors open doors for the entrepreneurs to expand to geographies that they deem valuable.”
The manufacturing sector is another area that could benefit from greater foreign investment, especially with the benefit of technology inputs provided by international partners.
“The UAE’s ranking as one of the top 15 investment hotspots globally, and the best in the region, builds on its status as a shipping and logistics hub, with a highly diversified economy,” Mr Agrawal said.
“There is also an opportunity to strengthen the scale and scope of [foreign direct investment] in emerging sectors, such as health care and environment.”
Abu Dhabi Ports will also participate at AIM to promote Khalifa Industrial Zone Abu Dhabi (Kizad) as an investment destination. “Free zones are a major point of attraction for global industries and our participation this year at AIM comes at a time when we have recently announced our massive expansion of the Khalifa Port Free Trade Zone,” said Mohamed Al Shamisi, the chief executive of Abu Dhabi Ports.
The UAE is the ninth largest destination in Asia for foreign direct investment (FDI), according to the 2016 Global Investment Report from the United Nations Conference on Trade and Development. In 2015, FDI flows amounted to US$13 billion, a 25 per cent increase on 2014.
The top three investor countries were the UK, the US and India with the top three sectors being financial services, real estate and wholesale and retail trade, including car repairs.
Last year, Dubai attracted Dh25.5bn in FDI inflows and ranked seventh globally as an FDI destination, according to an FDI monitor from Dubai FDI.
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