With Dubai and the UAE becoming one of the most business-friendly economies and one of the three most preferred investment destinations for global capital, the Dubai Investment Development Agency (Dubai FDI) has welcomed the faith shown by companies like Amazon Web Services (AWS), which plans to open data centres in the UAE in the first half of 2022.
Dubai FDI is the investment promotion agency of Dubai Economy, and played a crucial role in the UAE witnessed a 44% growth in FDI flows in 2020 to reach AED 73 billion. This performance was achieved as the country’s plans to double the size of its economy to AED 3 trillion over the next 10 years.
According to The Financial Times’ fDi Markets, Dubai and the UAE lead the MENA region on the World Bank’s Ease of Doing Business rankings for 2020.
Dubai recorded exceptional inflows of foreign direct investment (FDI) during 2020, with 455 projects worth AED 24.7 billion being established in the city, according to data from the Dubai FDI Monitor. An estimated 18,325 new jobs were created by inbound FDI in 2020. This performance places Dubai among the top global FDI locations in 2020, ranking first in the MENA region and fourth globally in attracting greenfield FDI capital, according to fDi Markets.
Among one of the biggest investments is the new AWS Middle East (UAE) Region, which will consist of three Availability Zones and become AWS’s second region in the Middle East.
The announcement builds on the momentum of cloud adoption in the Middle East by enabling customers to run applications and store data locally. This will give organisations access to advanced cloud services and technologies to drive innovation including computing, storage, networking, database, analytics, machine learning, Internet of Things (IoT), mobile services, and more. The development is supported by the UAE’s focus on promoting technology innovation, which makes it a global hub for entrepreneurs, e-governments, and businesses.
Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, said: “Our strategic location facilitates digital communication around the world in terms of speed, security, and infrastructure readiness. AWS’ expansion in the UAE is testimony to our positive growth environment and ability to attract strategic investment and comes as part of a fruitful and continuous collaboration over the years.
“Dubai FDI has supported AWS ever since its first investment in a Middle East and North Africa (MENA) office that the company opened in Dubai in December 2016. The opening of AWS data centres next year builds on this relationship and a new stage in the journey of excellence that has already seen the opening of two AWS Direct Connect locations and two Amazon CloudFront Edge locations in the UAE.”
Vinod Krishnan, Head of Middle East and North Africa, AWS, and advisory council member of the Dubai Chamber of Digital Economy, added: “We are excited to launch the AWS cloud infrastructure in the UAE in the first half of next year, which will benefit organisations of all sizes in the UAE and across the region.
“The upcoming launch builds on the continued AWS investment in the country, and our support for its focus on building a thriving global hub for technology innovation. We look forward to advancing our work with Dubai FDI to enable startups, enterprises, and government agencies to realise the full potential of the AWS Cloud.”
AWS’s establishment of its cloud infrastructure in the UAE confirms the pre-eminent position as the City of the Future, an effective gateway to the region’s emerging markets, and a prominent global hub for trade and investment.
The recently implemented updates to the federal Commercial Companies Law, which give existing and new investors full ownership of their business in more than 1,000 business activities effective June 1, 2021, adds to the attraction that Dubai and the UAE hold for global investors.
Al Gergawi said: “At Dubai FDI, we’re committed to supporting new investors by providing relevant information and advice and ensuring a smooth and seamless setup process. At the same time, we offer dedicated post-setup support and follow-through.”
Dubai has rapidly developed future-ready infrastructure that connects businesses to a vast market of 2.4 billion consumers in the Middle East, Africa, Indian Subcontinent, and the Commonwealth of Independent States (CIS). The city taps into several strategic advantages to deliver excellence, such as the world’s ninth-largest container port, one of the world’s largest airlines connecting over 150 destinations, and an ultra-modern transportation and distribution network.
