The United Arab Emirates is currently in the process of developing trade, investment and economic laws that seek to promote a healthier local investment climate, Sheikha Lubna bint Khalid Al Qasimi, the country’s Minister of Foreign Trade, said on Tuesday.
Speaking at the opening ceremonies of the first Annual Investment Meeting (AIM) in Dubai, Sheikha Lubna reiterated the importance of nurturing an environment conducive to strengthening foreign direct investments (FDI) – particularly as the global economy enters a period of recovery.
“FDI is a driving force in the globalisation process, which has become a key factor in a modern world economy where the international investment environment has grown to be economically, technically, politically and legally interrelated,” the minister said.
Quoting figures from the United Nations Conference on Trade and Development (UNCTAD), Sheikha Lubna said world FDI flow have seen a significant increase of over 13 per cent last year to $1.346 trillion (Dh4.94trn) compared with $1.189trn in 2009, offering a glimmer of hope for a still fragile global economy.
Among the challenges that countries face include sustainable development issues, foreign and local investor-related legislations, investment protection, capital transfer guarantees, earnings transfer and lack of fair rules for investment disputes, Sheikha Lubna mentioned.
Economic diversification remains a priority
The foreign trade minister has assured that the UAE remains committed to its economic diversification programme as it aims to support promising macroeconomic fundamentals that will help the country see a fiscal expansion of about 3.5 per cent in 2011.
“The [UAE] government is currently focusing on compliance with international investment guidelines to mitigate the effects of climate change via fields such as renewable energy. It is also encouraging the growth of sectors involving high technological competence, such as airplane components, tourism and education, as well as enhancing the services sector,” she said.
Economic initiatives by the UAE government have boosted the country’s reputation as one of the most attractive destinations to do business in the region.
According to Sheikha Lubna, the UAE hosts the regional headquarters of about 25 per cent of the top 500 companies in the world.
Investment summit seeks to stimulate economic activities
The three-day AIM conference in Dubai, which began today, will gather delegates from 75 countries worldwide in a bid to renew business ties and stimulate strategic international investments, particularly in the emerging markets.
The event, says Sheikha Lubna, will bring about new investment opportunities and inform investors of prospects in emerging markets that can steer the world away from recession and spur an investment boom in the near future.
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