According to experts, foreign direct investment (FDI) capital continues to pour into the UAE as investors opt for the first-class infrastructure and business-friendly policies in the region.

The UAE will attract a majority share of the possible $66 billion in FDI inflows into the Middle East, North Africa, and Pakistan (MENAP) next year, according to Business Link CEO Hatem El Safty, as the emirate is deemed an ideal investment location by global investors.

A report compiled by the Institute of International Finance shows the UAE is forecast to attract $22 billion in FDI inflows in 2022 thanks to its visa and business reforms, whilst the MENAP region could receive up to $56 billion, Zawya reports.

"We have observed how willingly people invest in the UAE, and allowing 100% foreign ownership in businesses is a genius stroke by the government to attract an even more significant number of potential investors," El Safty commented.

Over the last decade, the UAE has registered 116% growth in foreign direct investment, highlighting the economic development and diversification despite the volatile oil prices in global markets, geopolitical tensions and the global economic slowdown.

This year the UAE has attracted foreign investment in numerous sectors. The oil and gas sector makes up 59% of total FDI, followed by IT and communications with 10%. A number of measures are in place to boost investment in the industrial sector, increasing its FDI contribution to Dh300 billion ($81.68 billion) from Dh133 billion in a decade.

"The growing number of investments reflects global trust in the UAE's economy. At Business Link, we have particularly noticed an upsurge in e-commerce and IT-related industries since the pandemic hit the global economy two years back," said Faisal Qureshi, Chief of Marketing at Business Link Business Setup Consultants.

"We have noticed a spike in business centuries as investors have shown interest in the UAE economy. It is likely that high-net-worth individuals will relocate to the emirate and expand their business operations in the region," Qureshi added.