HH Sheikh Mohammed bin Rashid Al Maktoum opens Annual Investment Meeting (AIM 2016)

The Annual Investment Meeting (AIM 2016) was inaugurated today (Monday, April 11th, 2016) by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai at the Dubai International Convention and Exhibition Centre where it was attended by representatives of official delegations from more than 140 countries.

The strong response on the first day of AIM was a barometer of the robustness of the UAE economy and its global position as a hotspot for investments across the investor spectrum.

Day one of AIM focused on the latest trends in foreign direct investment (FDI) and its growth prospects in emerging markets and the importance of attracting foreign investment driven by a mix of legislation and flexibility in emerging markets.

AIM 2016 presented a platform for decisions makers, officials, investors, entrepreneurs, experts, analysts and academics who gathered under one roof to discuss FDI challenges, potential and growth.

Participants in AIM 2016 had the opportunity on day one to hold meetings, make contacts and share expertise with peers from all over the world. A variety of sessions were held on the first day. 

AIM 2016 kicked off with a welcome speech by H.E. Sultan bin Saeed Al Mansouri, UAE Minister of Economy who said: “It is my pleasure to welcome you to the sixth edition of the Annual Investment Meeting (AIM). The UAE government represented by the Ministry of Economy is honored to host this key forum that is being held under the patronage of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai – a fact that validates the importance that the United Arab Emirates and its leaders accord to this international meeting.” 

HE Al Mansouri added: “Global economic growth remains slow and quite uneven at international levels. According to latest estimates of the International Monetary Fund (IMF), the world economy is anticipated to grow at 3.4 percent in 2016 with the pickup in global activity remaining gradual especially in emerging markets and developing economies. In advanced economies, we witness a modest and uneven recovery as well. The falling commodity and oil prices, global demand in addition to the investment and spending decline and consumer confidence which had an impact on the modest growth in these economies.”

“For us in the UAE, adapting open economic policies, sound and strategic plans pursued by the government on economic diversification base have contributed to the development of various sectors and enhance the attractiveness of the UAE's business environment to record levels,” HE Al Mansouri said. 

“Our country has succeeded in just four decades to reduce dependence on oil to 30% of gross domestic product, making economic diversification a headline, and confirmed that oil is important however, it will not exceed the contribution of more than 20% of GDP by the year 2021. As concentrated our strategy at the moment to build a knowledge-based economy driven by knowledge-based multi-sector industrial sectors such as transportation, renewable energy, space and information technology,” he added.

“The world today is faced with an ever changing global investment map. Based on preliminary FDI data from UNCTAD, global FDI flows increased 36% in 2015 to an estimated US$1.7 trillion - the highest since 2007. This increase was largely driven by growth in FDI flows to the European Union (EU) and the United States. The increase in FDI flows was largely due to cross-border Merger & Acquisitions (M&As) – a rise of 61% in 2015 with only a very limited contribution from greenfield investment projects - meaning very limited growth in actual productive capacities,” added HE Al Mansouri. 

“To its credit, the U.A.E is the second largest FDI recipient in the West Asia region, according to the 2015 UNCTAD World Investment Report. The increased FDI pushed the UAE to No. 1 rank regionally and 22nd globally in the World Investment Report 2015. In terms of FDI projects, over 2015, the UAE maintained its dominance in attracting the highest FDI within the GCC region,” he said.

“The Ministry of Economy also aims to increase the contribution of FDI to 5% of the country’s GDP over the next five years, this is in line with the goals of the National Agenda of the UAE Vision 2021,” he said.

HE Al Mansouri has thrown light on the theme of this year Annual Investment Meeting. He said: “It stems from the realization that FDI is only one form of investment. Companies increasingly choose from multiple market strategies ranging from exports, franchise, joint ventures, strategic alliances or partnerships, sub-contracting or outsourcing (all captured in the term of New Forms of Investment - NFIs or non-equity forms of investment).” 

He welcomed the IORA Ministers and Heads of delegations. He added: “The United Arab Emirates is honored to host the Second Indian Ocean Rim Association Ministerial Economic Business Conference which will take place on the 12th and 13th April in Dubai under the Theme “SMEs & Innovation: Investing in Sustainable Future”.

“The Annual Investment Meeting has become a unique platform to promote investment and foster partnerships in public and private sectors thanks to your continued trust and confidence,” he concluded.

The welcome address was followed by the launch of AIM Annual FDI Report where it revealed the latest trends in FDI and FDI flows globally and regionally in particular in frontier and emerging markets. 

Special focus was placed on the competitiveness of fast growth markets and key opportunities and challenges they have to face in a fast-moving and unpredictable world on the first day of the event.