Foreign Direct Investment Case Study Help

Reasons to invest in a country

The firms seek to invest in the particular country due to the positive business environment and strategic assets,such as: new technology or networks of distribution. Also, it allows the company to be more innovative & efficient in their use of financial as well as non-financial resources, through capturing& exploringa number of opportunities in the international market forstrengthening its presence in globalarena. This also attracts a handful of potential drivers, making a company elevate its value offering inthe market. The companycould make a plan for the purpose ofincreasingits production capacity while establishing partnerships to strengthen competitiveness of product and to promote localization as well. Also, it could maximizethe performance of business,with optimal allocation of humanresource as well as competencies.

Leading sectors attracted most of the FDI

The top five leading sectors that accounted 62 percent of the total FDI projects include: retail and whole sale trade (25%), accommodation and food service (17%), administration and support service (8%), software publishers (6%), finance and insurance (6%). All of these sectors are profit making sectors with growth potential, hence attracts number of overseas business investments. Through attracting most of the FDI, a country could be able to contribute to the creation of the value adding and decent jobs, improve the skill base of the economy of country, facilitate the transfer of know-how, knowledge and technology, boost competitiveness of the local companies and allow their access to the markets and operate in anenvironmentally and socially responsible manner (Finance, 2019).

Attempts of UAE government to get more FDI into other sectors

The government of UAE should issue some laws for the purpose of developing, fostering as well as nurturing the foreign investment to boost the economy. The government should also provide the 100% FDI loan in profit generating and lucrative sectors and support them in their expansion plan.The attempts of the Emirati government should be aligned with the investor’s choice of making investment in UAE, without local sponsors or partner.The governmentkeep providing the stimulus packages to investors to attract them and to boost the economy. Additionally, it is significantly important to improve the confidence of investors in the economy of UAE, and trade and investment relations. All of these attempts would allow the country to move to global rankings in terms of FDI (TV, 2018)................................

 

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