Abstract:
There are many factors that may influence foreign direct investment (FDI) in a certain
country. The study identifies the influential factors of foreign direct investments with an
emphasis on foreign multinational companies in the manufacturing sector of the UAE. It
is believed that the growing need for FDI in the global economy is what derives the
interest of both foreign investors and host countries in engaging in FDl. The
information sought concentrates on investigating a contemporary phenomenon within
its real life context, to explore relevant issues, measures, factors and opinions.
In the globalised world economy of the twenty-first century, the world market for
foreign investments has become more competitive. Foreign direct investment is
welcomed by countries especially developing ones. FDI can be an effective contributor
not only to economic growth, but it is also important to management skills, transfers of
technology and a higher standard of living. Therefore, developing countries have made
considerable efforts over the past decade to improve their investment climate by
offering a wide range of investment incentives.
The research is sponsored by the government of the U.A.E. Therefore; it aims at helping
the country to reduce its dependency on oil as the main source of national income. It
aims at providing scientific and analytical material to help the country achieve its goals
in expanding the manufacturing sector and attracting foreign investments to create
future diversification of the economy away from oil.
The first stage of the thesis is to outline the problem, and the objectives of the study,
with a review of literature relevant to the subject and the impact ofFDI in the UAE. The
second stage is the research methodology and collecting data needed for the research.
Finally, the results are analysed and discussions are presented together with some
recommendations for further research. Moreover, a number of recommendations and
suggestions on policy implications were derived and presented based on the research
findings. It is hoped that the outcomes of this research will provide some guidelines that
will enable the UAE to become a better place for conducting businesses and a
favourable destination for foreign investments.
