CEPA Agreements Propel UAE’s Economic Growth
The UAE has seen an increase, in foreign direct investment (FDI) thanks to its Comprehensive Economic Partnership Agreements (CEPAs) with various global partners.
2 min
Massimo Falcioni, Chief Competitiveness Officer (CCO) at Abu Dhabi Investment Office (ADIO) highlighted the importance of these agreements during the AIM Congress at the Abu Dhabi National Exhibition Centre (ADNEC).
Falcioni compared CEPAs to “highways” that facilitate trade of goods and services between participating nations.
Broadening Market Access through CEPA
These CEPA initiatives serve as a gateway for businesses offering them market opportunities and streamlining trade processes by reducing barriers, simplifying customs procedures, and improving logistics.
Since their launch in 2021, the UAE has established CEPA partnerships with countries such, as India, Israel, Indonesia, Turkey, Cambodia, Georgia, Costa Rica, and Columbia. The agreements with the first five countries in this list are fully operational and negotiations with many other countries across the world are progressing.
Looking back on the dynamics of Foreign Direct Investment (FDI) the United Nations Council on Trade and Development’s (UNCTAD) World Investment Report 2023 highlighted that in 2022 FDI flowing into the UAE amounted to $22.737 billion showing a 10% increase and positioning the UAE as the highest recipient of FDI globally.
The UAE was ranked first in the West Asia region since it received 47.1% of the total FDI inflows to the region, amounting to $48.3bn. It was also ranked first in the MENA region as it accounted for 32.4% of the total FDI inflows to the region, amounting to $70.2bn.
Furthermore, Falcioni emphasized the location of the UAE as the intersection of three continents, Asia, Africa and Europe, with well-established aviation and port infrastructure.
They focus more on greenfield investments that drive growth by creating jobs and developing infrastructure. The ADIO provides incentives like land rates and assistance in accessing finance to support projects.
Apart from greenfield initiatives Falcioni also mentioned the growing significance of the UAE’s economy as a driver of growth. The Abu Dhabi Global Market (ADGM) serves as a center attracting fintech companies and offering platforms for financial access. The government is actively fostering an environment to innovation across sectors like e-commerce and e-sports with an interest in attracting foreign talent and investments.
The UAE is prioritising investments in Industry 4.0 and 5.0, focusing on automation, robotics, and enhanced productivity.
Working closely with Abu Dhabis Department of Economic Development the Ministry of Industry and Advanced Technology (MoIAT) is actively collaborating with businesses to facilitate this transition.
The ongoing transformation involves increasing automation and digitalization to enhance productivity and boost competitiveness. Together these initiatives are positioning the UAE as a hub, for investment as stated by Falcioni.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
With the growing global demand for digital infrastructure, Damac has been expanding its footprint in this important sector.
2 min
Damac Group, a renowned conglomerate with a diverse investment portfolio of luxury real estate, hospitality, property management, and logistics, has announced its plan to invest up to $1 billion in the data centers sector over the next few years.
Recognizing the increasing global demand for digital infrastructure, Damac has been expanding its footprint in this crucial sector. A significant milestone in Damac’s diversification strategy was the launch of Edgnex Data Centers in 2021, which has enabled the group to capitalize on the growing need for robust digital infrastructure.
According to Damac, Edgnex is making significant strides in Saudi Arabia, with facilities under construction in Dammam and Riyadh that will deliver 55MW by 2025. Additionally, plans are underway for a data centre in Amman, Jordan, and another in Turkey in partnership with Vodafone.
In May, Damac had announced its entry into the Indonesian market with plans to build a data center in Jakarta. The 15MW facility, located along MT Haryono, is scheduled to complete its first construction phase in the fourth quarter of 2025.
“This substantial investment in the data center sector reflects our commitment to advancing digital infrastructure and supporting the technological transitions that are essential for future growth and innovation,” said Hussain Sajwani, the Founder and Chairman of Damac Group.
In addition to the technological transitions and diversification, particularly in the data centers sector, Damac Group is heavily focusing on its Artificial Intelligence (AI) investments.
The increased focus on AI and technological infrastructure, he stated, is expected to bolster the Group’s existing portfolio and pave the way for new strategic partnerships and collaborations.
By investing in AI and data centers, it aims to leverage advanced technologies to create value and drive sustainable growth, he added.
The Damac Group’s diversified family office has already invested in over 70 funds across various strategies, demonstrating its commitment to fostering innovation and growth across multiple industries.
With this new focus on AI, the Group aims to further enhance its role in advancing foundational AI models and infrastructure.
“As a forward-thinking organization, we recognize the transformative potential of AI in shaping the future,” remarked Sajwani.
“Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors,” he stated.
According to him, Damac has made notable investments in leading AI companies including a $50 million in the AI startup, Anthropic – as one of the top investors who have bought into the company from the bankrupt cryptocurrency exchange, FTX.
Also it has made investments in xAI – an American AI startup founded by Elon Musk and in Mistral – a France-based AI company which is one of the best European large-language model open source.
“We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry,” said Sajwani.
“Our investments in companies like Mistral, Anthropic, and xAI underscore our dedication to fostering innovation and driving the next wave of technological advancements,” he added.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
