Literature Review on the Foreign Investment in UAE

The review is important for this research as it clearly shows that foreign investment still undergo barriers that prevent them from investing fully in the UAE. Although policies are being made regarding the issue, they still fail to effectively lift the barriers to pave way for increased foreign investment that is important for the economic growth of the region.

The seventh source literature that has been well utilized in this research is a review by the World Economy, ‘United Arab Emirates FDI Outlook’ written by Wasseem Mina which gives the overall outlook on the Foreign Direct Changes (FDI) changes in the UAE. FDI is crucial in creating a diversified and sustainable economy that is knowledge-based in the UAE.

Over the past 10 years, the FDI stock in the region rose at an average rate of 45.3 annually to reach 95 billion US dollars which is approximately 27% of the GDP in the year 2012. Although the low rate of increase can be attributed to the global crises, outrageous investment laws take the lions share.

Rush of Foreign Investment

Moreover, foreign investors are not provided with any incentives that will make them rush to invest in the UAE. The focus on the improvement of local investments has led to a negligence of the importance of inward investments which has in turn dwarfed the economic potential of the UAE. (Mina, 2014). Get in touch with Dissertation Help Online

The review is important to this research in that it gives an overview of the rate of growth of foreign investment in the region which is quite low in spite of the suitable factors for trade and investment that are enjoyed in the region such as political stability and availability of labor and raw materials.

The eighth literature source that has proven useful to this research is an article from the International Journal of Business and Information, ‘Analyzing the Business and Economic Scenario of Foreign Direct Investment in Yemen Compared with that of Selected Countries in the Middle East and North Africa (MENA),’ written by Musibah, A. S., Shahzad, A, and Bt Fadzil, F. H which examines the pattern and trend of the flow of foreign investment into Yemen for the past 10 years and the onset of the current decade while comparing it with some of the countries in North Africa and the Middle East.

Investments in Yemen

According to the article, there has been a fluctuating and declining pattern of the flow of foreign investment into Yemen at the end of the recently completed decade and at the onset of the current decade.

On the other hand, countries located in the Middle East and North Africa have noted a steady rise in the increase of foreign investment which is only dented by the occurrence of foreign crises. (Musibah et al, 2015). For a similar paper follow the link Buy Term Paper Online

According to the research, the main reason for a reduced flow of inward investments in Yemen as compared to other countries is the improper investment regulations and lack of incentives for foreign investors in Yemen. The article is important for this research as it provides the numerical evidence of the reduced rate of foreign investment in the UAE as compared to other countries and the main reason being use of improper investment laws.