UAE Ministry of Economy: “UAE’s GDP is now less reliant on oil, thanks to diversification and higher investment inflows”
Dubai, UAE, 21 February 2015: The UAE Ministry of Economy, the organizing body of the Annual Investment Meeting (AIM), has announced that the industrial investments would be one of the key topics at the 2015 edition to be held from March 29 to April 1, at the Dubai International Convention and Exhibition Centre under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.
H.E. Abdulla Al Saleh, Undersecretary, UAE Ministry of Economy, Foreign Trade Sector said: “Industrial investment holds high importance in this year’s AIM agenda, as it is considered a key pillar that contributes significantly to the GDP of developed economies.”
H.E. Al Saleh said that UAE’s GDP is less dependent on oil due to diversification of revenue sources and higher inflow of investment, with the industrial sector increasingly becoming a major contributor to the GDP as a result of attracting industrial investments.
Mr. Dawood Al Shezawi, CEO, AIM’s Organizing Committee, said that AIM would discuss in depth industrial investment and challenges facing it, given its global economic significance. He added that industrial development has acquired high importance in all markets, including emerging ones.
The industrial sector generates a large number of jobs, which is an important aspect that calls for boosting of various kinds of industrial investments in developing countries and emerging markets.
“Industrial investment triggers high interest among investors, because it is considered a magnet for capital and brings innovative products, especially in technology, energy, renewable energy agriculture and other industries,” added H.E. Al Saleh
“Emirates Global Aluminium (EGA) is a Strategic Partner of AIM 2015. It is a giant industrial entity and global leader in the production of aluminum. It represents the ideal industrial model, being one of the largest aluminum companies in the world,” said Al Shezawi.
EGA is a 50/50 joint venture company of Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. This merger came into effect in 2013, creating the 5th largest global producer of aluminum. EGA has an aggregate enterprise value of more than USD $15 billion (55 billion AED).
AIM 2015 will be focused on the topics of diverse options and policies for innovation and technology transfer through Foreign Direct Investment (FDI). It will also discuss enabling regulatory frameworks for host countries to encourage innovation and technology transfer, in addition to raising the topic of developing high-end industries, and the underlying factors behind Asia’s successful case studies. The forum will also discuss investment in mining as well as companies’ strategies and FDI factors to develop high end industries.
“In-depth discussions on industrial investments will be held during AIM, with a focus on obstacles and challenges, with the goal of accelerating inflow of industrial FDI among participating countries,” Al Shezawi added.
Industrial investment faces numerous legal and legislative obstacles. Investors and host countries need to come together to examine ways to attract investments and develop legislative and legal-oriented industrial investment framework, including intellectual property rights and technology transfer, etc. This is another topic of discussion that will dominate AIM this year, addressed by leading specialists, officials and experts.
Obstacles also include creating appropriate infrastructure to host industrial investments, especially in the case of heavy industries, which require availability of electricity, communications, transportation and logistics.
This year’s AIM will be held under the theme ‘Sustainable Development through FDI Induced Innovation and Technology Transfer’.
Innovation is considered one of the main pillars of the industrial sector, as industrial revolution is the direct result of innovation. Technology transfer is another key requirement for industrial sector FDI, as the foreign investors transfer advanced industrial technologies to the host country, and develop it and as well as train the staff on it.
Experts, officials and investors will discuss the topic of technology transfer at AIM 2015, and throw light on its current status and challenges and its benefits. AIM will also highlight the key technologies that host countries look forward to acquire.
Middle East and Arab countries in general are still in need of more investment in the industrial sector. Those countries have a strong labor force as well as plenty of raw materials and industrial resources. However, they need to create ways to attract more industrial investments which will ensure further economic development, youth employment and technology transfer.