Foreign Direct Investment Case Study Analysis
Positive and negative list of FDI
The positive list of FDI are those sectors in which the greater level of FDI are permitted as these sectors are thriving and making money for the country as a whole. Also, the positive sectorscontributes to the economic growth of the country. On the other hand, the negative FDI list involves some sectors which are restricted for the investment, despite of the negative restriction on investment in the negative list of FDI, the foreign direct investors are keen to invest into the negativesectors only through the arrangement of local sponsorships. A 51% control over negative sectors could seek by the investors (Business, 2019).
Impact of positive and negative list of FDIon FDI inflow to UAE
The impact of increased foreign direct investment in the positive and negative list includes increasing appetite for the establishment of the local manufacturing businesses, the evolution of the country as a means of the regional hub for manufacturing for the African markets and Indian subcontinent markets, and an efficient utilization of the logistic and transport network. Also, the leading position of the country as a regional destination for doing business and making investment attracts the investors, hence fueling the growth of the economy.(Business, 2019).
Conclusion
Foreigndirect investment (FDI) is growth driver of any economy with potential to increase the employment opportunities, stimulate economic development, transfer resources, and reduce disparity between cost and revenues and tax incentives. With the passage of time, UAE is becoming the global FDI destination with top ranking among all countries. This is due to the government support for the international expansion, providing packages and loans and improving the investment and trade relations................................
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