Identification of the influential factors of foreign direct investment in the manufacturing sector of the United Arab Emirates

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.