THE FOREIGN DIRECT INVESTMENT

Running head: FOREIGN DIRECT INVESTMENT
Foreign Direct Investment
Name of the Student
Name of the University
Author note

FOREIGN DIRECT INVESTMENT1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
FDI...................................................................................................................................................2
Importance of FDI for a country......................................................................................................2
Reasons behind investing in a country by a company.....................................................................2
Top 5 sectors of 2019 in terms of FDI.............................................................................................3
Recommendations for the UAE government to attract FDI in other sectors...................................3
Positive and Negative list of FDI.....................................................................................................3
Impact of positive and negative list on FDI inflow to UAE............................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

FOREIGN DIRECT INVESTMENT2
Introduction
Foreign direct investment (FDI) is an important tool for economic development of a
country. It involves the investment by a company or individual into another country for the
business interest. One of the major country that attracts huge foreign investment into the region
is United Arab Emirates (U.ae, 2020).
Discussion
FDI
Foreign direct investment is a long term investment in a foreign country by a firm or
individual. There are different forms of the FDI into a country. FDI required when an investor set
up a foreign business operation (Anyanwu, 2017). In addition, when an investor acquires foreign
business assets from a foreign company, it also considered as the FDI. The investors mainly
prefer open markets for the FDI instead of closed market.
Importance of FDI for a country
The investments into the country by a company brings growth prospects for the country.
It enables best return with the least risk associated with the business. Moreover, it boosts the
growth of business and trade of the country. Thus, it creates potential employment benefits for
the country (Rojec & Knell, 2018). As a result, it improves the standard of living and purchasing
power of the people. Overall, it fosters economic growth and development of the country.
Reasons behind investing in a country by a company
The companies are interested in investing in a country for some key reasons. It benefits
the companies due to lower risk and higher return associated with the business. It enables the