The Abu Dhabi Foreign Direct Investment Policies Transparency General Index for the year 2013, marked 67.3 on the 100-point index scale, which largely reflects investors feeling of transparency in the policies adopted by the UAE federal government, and the sound policies of the wise government of Abu Dhabi, which represents a major incentive for attracting FDI to the Emirate of Abu Dhabi in particular.
This came in the results of Abu Dhabi Foreign Direct Investment Policies Transparency General Index for the year 2013, issued by the Studies Directorate of the Department of Economic Development.
The results of the FDI policies transparency index, reflected the views of respondents on seven key issues which covered: The efficiency of government policies for attracting and encouraging FDI in the Emirate of Abu Dhabi; the role of the federal government in the management and implementation of policies and incentives which affect foreign investors; the role of Abu Dhabi Government in the management and implementation of policies and incentives which affect foreign investors; the distribution of economic responsibilities among the various levels of the government for the management and implementation of policies and incentives that affect foreign investors; the capacity of government entities at the federal level for managing and directing policies and incentives related to investment; the capacity of government entities in the Emirate of Abu Dhabi at the local level for managing and directing policies and incentives related to FDI investment; and the compatibility of the current policies of the Emirate of Abu Dhabi in the field of foreign investment and the available incentives within the international obligations.
Regarding the efficiency of government policies in the Emirate of Abu Dhabi for attracting and encouraging FDI, the index results revealed that approximately (95.4 %) of respondents were aware of the effectiveness and efficiency of government policies aimed at attracting and encouraging FDI in the Emirate of Abu Dhabi.
As for the roles at the various administrative levels in UAE and the Emirate of Abu Dhabi, concerning the management and implementation of policies and incentives which affect foreign investors in the Emirate of Abu Dhabi, the index results reflected the high clarity of those roles, at both the federal level and the level of the Government of Abu Dhabi. About 93.1 % of respondents indicated that those roles were clear at the level of the federal government; the same percentage went for the clarity of the role of the Government of Abu Dhabi in the management and implementation of policies and incentives related to foreign direct investment.
A small percentage of respondents (6.9%), reported that the roles at the level of the federal government and the Government of Abu Dhabi, lack clarity.
About 91.1 % of respondents in the examined sample, asserted the clarity of the process of distribution of economic responsibilities among the various levels of government for the management and implementation of policies and incentives which affect their businesses. With regard to the respondents assessment of the capacity of government agencies in Abu Dhabi at different levels, in terms of management and control of policies and incentives related to foreign direct investment, the results emphasized the effectiveness of capacity of the federal government, as 90% of respondents in the examined sample, indicated that the capacity of government authorities in UAE were effective/ sufficient to manage and direct policies and incentives related to the investment.
The percentage of respondents who reported that the capacity of government authorities in the Emirate of Abu Dhabi were effective/sufficient for the management and direction of policies and incentives related to investment, accounted for 93.4%. In both cases, this percentage was considered as significantly good, as it reflected the tireless efforts made by the Emirate of Abu Dhabi and UAE in creating the right climate for attracting and encouraging FDI in the Emirate of Abu Dhabi in particular, and the UAE in general.
Regarding consistency of current FDI and incentive policies of the Emirate of Abu Dhabi with international commitments, about 48.7 % of the respondents reported that this issue never posed as a problem, as the FDI and incentive policies adopted by the government were consistent, and did not contradict with international commitments, which include, for example, bilateral investment agreements.
As for the ease of accessing various information relating to investment, respondents revealed that accessing information concerning work permits and licenses was ranked first in terms of ease, compared to other investment information; while information related to the environmental conditions and requirements, came in the second place.
On the other side the less easy investment information to obtain, was that on government fees, as well as information relating to the acquisition of the property, in particular, as shown in Table No. 2.
Respondents evaluation of licensing and registration fees for foreign investors, revealed that 31.4% of respondent in the surveyed sample did not consider the issue as a problem or obstacle to their investments, while the largest percentage reported that the issue was a problem and an impediment to their investments in the Emirate of Abu Dhabi. Views and opinions varied, as 22.8 % indicated that licensing and registration fees constituted a simple problem, 25.6 % believed that it was a medium problem, 16.7% of respondents reported that it was a big problem, and 3.5% considered licensing and registration fees as a very big problem.
In evaluating access to information on the changes in government policies and regulations concerning foreign investors in the Emirate of Abu Dhabi, about 41.1 % of respondent in the examined sample reported that it was not a problem or an obstacle to their investments, the largest percentage 58.9 % reported that it was a problem and an obstacle to their investments in the Emirate of Abu Dhabi. Views and opinions varied as 29% saw that access to information on the changes in government policies and regulations concerning foreign investors constituted a simple problem, 22.1% believed that it represented a medium problem, 5.5 % reported that it was a big problem, while (2.3%) indicated that it was a very big problem.
Regarding respondents assessment of obtaining information on changes in policies and regulations of the federal government concerning foreign investors, about (41.5 %) of respondent in the interviewed sample reported that obtaining such information was not a problem or an obstacle to their investments, while the largest percentage (58.5%) indicated it was problem and an impediment to their investments in the Emirate of Abu Dhabi. Opinions varied among respondents, as 26.8 % considered the issue as a simple problem, (23.9 %) believed that it constituted a medium problem, (5.8%) indicated that it was a big problem while (2%) described obtaining information on changes in policies and regulations of the federal government concerning foreign investors, as a very big problem.
In answer to the question about the sources of information concerning important business laws and regulations issued by the Government of Abu Dhabi on foreign investment, respondents indicated that they depended on information bases in government entities. The sources were either direct contacts or through the websites of government authorities. These two sources of information came as the most reliable sources by 91.9% and 78.3 %respectively.
On the other hand, the least reliable sources of information were the foreign consultancy institutions and foreign legal institutions in general. The results reflected that investors and businessmen were depending significantly on the local databases compared to foreign databases outside the State. This emphasizes the keenness of the Government of the Emirate of Abu Dhabi and all executive authorities to provide information and data needed by investors, with utmost transparency, and raise awareness and knowledge about laws and regulations issued in this regard; which enhances the investment environment for FDI in the Emirate of Abu Dhabi and help attracting more capital inflows. This also contributes to achieving the goals of the Abu Dhabi Economic Vision 2030 emanating from the policy agenda of the emirate.
As for the point of view of respondent about the adequacy of the government efforts in the Emirate of Abu Dhabi, intended to make consultation with investors prior to the enactment of laws and regulations related to foreign investments, about (65%) of the respondents stated that those efforts were sufficient, while 35% reported that these efforts were insufficient. However; 61.6 % of respondents indicated that there were open and sufficient channels of communication between the government of Abu Dhabi and all relevant parties, including foreign investors. Opinions of respondents were positive concerning the clarity of government procedures with regard to exceptions in the process of notification and consultation carried out by the government authorities.
Respondents' assessment regarding access to arbitration appeal procedures by the foreign companies in the face of administrative government decisions in the Emirate of Abu Dhabi indicated that there was no real problem in this regard, since the procedures are in place. About (42.8 %) of the sample reported that this issue does not represent a problem at all, (20.4%) indicated that it is a simple problem, 28% of the respondents considered it to be a medium problem while the remaining part (8.9%) stated that it is a big or a very big problem. Concerning the role of the Department of Economic Development, the opinion of a surveyed sample of foreign investors, reflected effectiveness of the performance and the role of the Department of Economic Development in supporting investors and providing a favorable investment climate to encourage and attract FDI in general.
Around (93.5 %) of the surveyed sample indicated the effectiveness or adequacy of the Department of Economic Development role in supporting the investors by, highlighting and submitting their issues to decision makers' as well as submitting proposals to enhance the investment environment in the Emirate of Abu Dhabi. About (93.9 %) of the respondent emphasized the effectiveness or efficiency of the single-window service (Abu Dhabi Business Center) of the Department of Economic Development, in helping foreign investors, before and during the establishment and practicing of their business activities in Abu Dhabi. The results of Dhabi Foreign Direct Investment Policies Transparency General Index for the year 2013, came to largely reflect investors awareness of transparency in the policies adopted by the federal government of the United Arab Emirates, and the policies of the wise government of the Emirate of Abu Dhabi, which represent a major incentive for attracting foreign direct investments inflow into the Emirate of Abu Dhabi in particular.The index results also confirmed the effectiveness and efficiency of the government policies adopted by the Emirate of Abu Dhabi, which aim at attracting and encouraging FDI, as well as the clarity of roles concerning the management and implementation of policies and incentives which affect the activities of foreign investors in the Emirate of Abu Dhabi. Results as well, emphasized the effectiveness and efficiency of the process of distribution of economic responsibilities among the various levels of the government, regarding the management and implementation of policies and incentives which affect the business activities of investors. The results of Abu Dhabi FDI policies transparency index, stressed the reflected the effectiveness or adequacy of the capabilities of government agencies of the United Arab Emirates, to manage and direct the policies and incentives related to investment and ease of access to information regarding authorizations and work permits, compared to the ease of access to the other investment information. The largest percentage of respondents reported that licensing and registration fees for foreign investors represent a problem and an impediment to their investments in the Emirate of Abu Dhabi, while results reflected the investors depend more on more information bases of government entities,, which they access either by direct contacts with these entities or online through the websites of various government authorities. Respondents praised the coordinating role of the government with the foreign investors, in the enactment of laws which largely affect their business activities.
Meanwhile, the Economist Intelligence Unit, estimated the cumulative value of the foreign direct investment in the United Arab Emirates to stand at $91.6 billion (AED 336 billion) at the end of 2012, and it expected to rise to $100 billion (AED 367.2 billion) in 2013; and to jump to $138.6 billion (AED 508.5 billion) by the year 2017.
According to the United Nations Conference on Trade and Development (UNCTAD) Report, the foreign direct investment in United Arab Emirates increased by 25% to reach $10 billion, which enabled UAE to rank 13 on the list of the best promising economies in FDI during the period (2013-2015).
The UNKTAD report attributed this improvement in the foreign direct investment, to the increased public spending in the Emirate of Abu Dhabi, and the strong performance of the non-oil sector in the Emirate of Dubai; in addition to the issuance by the Emirate of Dubai of a private law to expand the areas where the foreigners have the right to own real estate. According to the results of surveys of foreign investment in the Emirate of Abu Dhabi (2008-2009) & (2010-2011), the results of the survey reflected an increase in foreign direct investments in the Emirate of Abu Dhabi in 2011 at a rate of 7.8% compared to 2010, with a value of about AED 52.2 billion, and about AED 48.5 billion respectively. Foreign direct investments had seen an improvement with high growth rates during the period (2008-2011). Investments increased in 2011 compared to 2010 in all activities of health, building and construction, hotels and restaurants, manufacturing, transport, storage and communication, real estate and business services, wholesale and retail trade, electricity, gas and water. The activities of the extractive industries, financial institutions and insurance, and social and personal services had seen a decrease during the same year.
Foreign direct investments in the activity of health witnessed the highest rates of growth compared to other activities, as it reached AED193 million in 2011, compared to AED 28 million in 2010, achieving a growth rate approximately (589.3 %), followed by the foreign direct investments in the Activity of Construction, which reached about 4 billion dirhams in 2011 compared to about 3 billion dirhams in 2010, and a growth rate of approximately (31.9 %), in the third position is the Activity of restaurants and hotels, as the foreign direct investments in this activity reached about 9 billion dirhams during the year of 2011 compared to about 7 billion dirhams in 2010, and a growth rate of approximately 28.6%, while the manufacturing activity came in the fourth place with a growth rate of (26.5 %) during 2011 compared to 2010 with investments of AED 9 billion at the end of 2011. Foreign direct investments in the activity of education remained the same in 2011 and 2010.
This came in the results of Abu Dhabi Foreign Direct Investment Policies Transparency General Index for the year 2013, issued by the Studies Directorate of the Department of Economic Development.
The results of the FDI policies transparency index, reflected the views of respondents on seven key issues which covered: The efficiency of government policies for attracting and encouraging FDI in the Emirate of Abu Dhabi; the role of the federal government in the management and implementation of policies and incentives which affect foreign investors; the role of Abu Dhabi Government in the management and implementation of policies and incentives which affect foreign investors; the distribution of economic responsibilities among the various levels of the government for the management and implementation of policies and incentives that affect foreign investors; the capacity of government entities at the federal level for managing and directing policies and incentives related to investment; the capacity of government entities in the Emirate of Abu Dhabi at the local level for managing and directing policies and incentives related to FDI investment; and the compatibility of the current policies of the Emirate of Abu Dhabi in the field of foreign investment and the available incentives within the international obligations.
Regarding the efficiency of government policies in the Emirate of Abu Dhabi for attracting and encouraging FDI, the index results revealed that approximately (95.4 %) of respondents were aware of the effectiveness and efficiency of government policies aimed at attracting and encouraging FDI in the Emirate of Abu Dhabi.
As for the roles at the various administrative levels in UAE and the Emirate of Abu Dhabi, concerning the management and implementation of policies and incentives which affect foreign investors in the Emirate of Abu Dhabi, the index results reflected the high clarity of those roles, at both the federal level and the level of the Government of Abu Dhabi. About 93.1 % of respondents indicated that those roles were clear at the level of the federal government; the same percentage went for the clarity of the role of the Government of Abu Dhabi in the management and implementation of policies and incentives related to foreign direct investment.
A small percentage of respondents (6.9%), reported that the roles at the level of the federal government and the Government of Abu Dhabi, lack clarity.
About 91.1 % of respondents in the examined sample, asserted the clarity of the process of distribution of economic responsibilities among the various levels of government for the management and implementation of policies and incentives which affect their businesses. With regard to the respondents assessment of the capacity of government agencies in Abu Dhabi at different levels, in terms of management and control of policies and incentives related to foreign direct investment, the results emphasized the effectiveness of capacity of the federal government, as 90% of respondents in the examined sample, indicated that the capacity of government authorities in UAE were effective/ sufficient to manage and direct policies and incentives related to the investment.
The percentage of respondents who reported that the capacity of government authorities in the Emirate of Abu Dhabi were effective/sufficient for the management and direction of policies and incentives related to investment, accounted for 93.4%. In both cases, this percentage was considered as significantly good, as it reflected the tireless efforts made by the Emirate of Abu Dhabi and UAE in creating the right climate for attracting and encouraging FDI in the Emirate of Abu Dhabi in particular, and the UAE in general.
Regarding consistency of current FDI and incentive policies of the Emirate of Abu Dhabi with international commitments, about 48.7 % of the respondents reported that this issue never posed as a problem, as the FDI and incentive policies adopted by the government were consistent, and did not contradict with international commitments, which include, for example, bilateral investment agreements.
As for the ease of accessing various information relating to investment, respondents revealed that accessing information concerning work permits and licenses was ranked first in terms of ease, compared to other investment information; while information related to the environmental conditions and requirements, came in the second place.
On the other side the less easy investment information to obtain, was that on government fees, as well as information relating to the acquisition of the property, in particular, as shown in Table No. 2.
Respondents evaluation of licensing and registration fees for foreign investors, revealed that 31.4% of respondent in the surveyed sample did not consider the issue as a problem or obstacle to their investments, while the largest percentage reported that the issue was a problem and an impediment to their investments in the Emirate of Abu Dhabi. Views and opinions varied, as 22.8 % indicated that licensing and registration fees constituted a simple problem, 25.6 % believed that it was a medium problem, 16.7% of respondents reported that it was a big problem, and 3.5% considered licensing and registration fees as a very big problem.
In evaluating access to information on the changes in government policies and regulations concerning foreign investors in the Emirate of Abu Dhabi, about 41.1 % of respondent in the examined sample reported that it was not a problem or an obstacle to their investments, the largest percentage 58.9 % reported that it was a problem and an obstacle to their investments in the Emirate of Abu Dhabi. Views and opinions varied as 29% saw that access to information on the changes in government policies and regulations concerning foreign investors constituted a simple problem, 22.1% believed that it represented a medium problem, 5.5 % reported that it was a big problem, while (2.3%) indicated that it was a very big problem.
Regarding respondents assessment of obtaining information on changes in policies and regulations of the federal government concerning foreign investors, about (41.5 %) of respondent in the interviewed sample reported that obtaining such information was not a problem or an obstacle to their investments, while the largest percentage (58.5%) indicated it was problem and an impediment to their investments in the Emirate of Abu Dhabi. Opinions varied among respondents, as 26.8 % considered the issue as a simple problem, (23.9 %) believed that it constituted a medium problem, (5.8%) indicated that it was a big problem while (2%) described obtaining information on changes in policies and regulations of the federal government concerning foreign investors, as a very big problem.
In answer to the question about the sources of information concerning important business laws and regulations issued by the Government of Abu Dhabi on foreign investment, respondents indicated that they depended on information bases in government entities. The sources were either direct contacts or through the websites of government authorities. These two sources of information came as the most reliable sources by 91.9% and 78.3 %respectively.
On the other hand, the least reliable sources of information were the foreign consultancy institutions and foreign legal institutions in general. The results reflected that investors and businessmen were depending significantly on the local databases compared to foreign databases outside the State. This emphasizes the keenness of the Government of the Emirate of Abu Dhabi and all executive authorities to provide information and data needed by investors, with utmost transparency, and raise awareness and knowledge about laws and regulations issued in this regard; which enhances the investment environment for FDI in the Emirate of Abu Dhabi and help attracting more capital inflows. This also contributes to achieving the goals of the Abu Dhabi Economic Vision 2030 emanating from the policy agenda of the emirate.
As for the point of view of respondent about the adequacy of the government efforts in the Emirate of Abu Dhabi, intended to make consultation with investors prior to the enactment of laws and regulations related to foreign investments, about (65%) of the respondents stated that those efforts were sufficient, while 35% reported that these efforts were insufficient. However; 61.6 % of respondents indicated that there were open and sufficient channels of communication between the government of Abu Dhabi and all relevant parties, including foreign investors. Opinions of respondents were positive concerning the clarity of government procedures with regard to exceptions in the process of notification and consultation carried out by the government authorities.
Respondents' assessment regarding access to arbitration appeal procedures by the foreign companies in the face of administrative government decisions in the Emirate of Abu Dhabi indicated that there was no real problem in this regard, since the procedures are in place. About (42.8 %) of the sample reported that this issue does not represent a problem at all, (20.4%) indicated that it is a simple problem, 28% of the respondents considered it to be a medium problem while the remaining part (8.9%) stated that it is a big or a very big problem. Concerning the role of the Department of Economic Development, the opinion of a surveyed sample of foreign investors, reflected effectiveness of the performance and the role of the Department of Economic Development in supporting investors and providing a favorable investment climate to encourage and attract FDI in general.
Around (93.5 %) of the surveyed sample indicated the effectiveness or adequacy of the Department of Economic Development role in supporting the investors by, highlighting and submitting their issues to decision makers' as well as submitting proposals to enhance the investment environment in the Emirate of Abu Dhabi. About (93.9 %) of the respondent emphasized the effectiveness or efficiency of the single-window service (Abu Dhabi Business Center) of the Department of Economic Development, in helping foreign investors, before and during the establishment and practicing of their business activities in Abu Dhabi. The results of Dhabi Foreign Direct Investment Policies Transparency General Index for the year 2013, came to largely reflect investors awareness of transparency in the policies adopted by the federal government of the United Arab Emirates, and the policies of the wise government of the Emirate of Abu Dhabi, which represent a major incentive for attracting foreign direct investments inflow into the Emirate of Abu Dhabi in particular.The index results also confirmed the effectiveness and efficiency of the government policies adopted by the Emirate of Abu Dhabi, which aim at attracting and encouraging FDI, as well as the clarity of roles concerning the management and implementation of policies and incentives which affect the activities of foreign investors in the Emirate of Abu Dhabi. Results as well, emphasized the effectiveness and efficiency of the process of distribution of economic responsibilities among the various levels of the government, regarding the management and implementation of policies and incentives which affect the business activities of investors. The results of Abu Dhabi FDI policies transparency index, stressed the reflected the effectiveness or adequacy of the capabilities of government agencies of the United Arab Emirates, to manage and direct the policies and incentives related to investment and ease of access to information regarding authorizations and work permits, compared to the ease of access to the other investment information. The largest percentage of respondents reported that licensing and registration fees for foreign investors represent a problem and an impediment to their investments in the Emirate of Abu Dhabi, while results reflected the investors depend more on more information bases of government entities,, which they access either by direct contacts with these entities or online through the websites of various government authorities. Respondents praised the coordinating role of the government with the foreign investors, in the enactment of laws which largely affect their business activities.
Meanwhile, the Economist Intelligence Unit, estimated the cumulative value of the foreign direct investment in the United Arab Emirates to stand at $91.6 billion (AED 336 billion) at the end of 2012, and it expected to rise to $100 billion (AED 367.2 billion) in 2013; and to jump to $138.6 billion (AED 508.5 billion) by the year 2017.
According to the United Nations Conference on Trade and Development (UNCTAD) Report, the foreign direct investment in United Arab Emirates increased by 25% to reach $10 billion, which enabled UAE to rank 13 on the list of the best promising economies in FDI during the period (2013-2015).
The UNKTAD report attributed this improvement in the foreign direct investment, to the increased public spending in the Emirate of Abu Dhabi, and the strong performance of the non-oil sector in the Emirate of Dubai; in addition to the issuance by the Emirate of Dubai of a private law to expand the areas where the foreigners have the right to own real estate. According to the results of surveys of foreign investment in the Emirate of Abu Dhabi (2008-2009) & (2010-2011), the results of the survey reflected an increase in foreign direct investments in the Emirate of Abu Dhabi in 2011 at a rate of 7.8% compared to 2010, with a value of about AED 52.2 billion, and about AED 48.5 billion respectively. Foreign direct investments had seen an improvement with high growth rates during the period (2008-2011). Investments increased in 2011 compared to 2010 in all activities of health, building and construction, hotels and restaurants, manufacturing, transport, storage and communication, real estate and business services, wholesale and retail trade, electricity, gas and water. The activities of the extractive industries, financial institutions and insurance, and social and personal services had seen a decrease during the same year.
Foreign direct investments in the activity of health witnessed the highest rates of growth compared to other activities, as it reached AED193 million in 2011, compared to AED 28 million in 2010, achieving a growth rate approximately (589.3 %), followed by the foreign direct investments in the Activity of Construction, which reached about 4 billion dirhams in 2011 compared to about 3 billion dirhams in 2010, and a growth rate of approximately (31.9 %), in the third position is the Activity of restaurants and hotels, as the foreign direct investments in this activity reached about 9 billion dirhams during the year of 2011 compared to about 7 billion dirhams in 2010, and a growth rate of approximately 28.6%, while the manufacturing activity came in the fourth place with a growth rate of (26.5 %) during 2011 compared to 2010 with investments of AED 9 billion at the end of 2011. Foreign direct investments in the activity of education remained the same in 2011 and 2010.
Source:
Mubasher
