The Impact of Inflow Foreign Direct Investment on the Local Human Capital Efficiency with the Role of Financial Deepening as Mediator: A Case of United Arab Emirates

Abstract

Purpose: This research determines the impact of inflow foreign direct investment inflow foreign direct investment on the expanded concept of social and economic progress in the UAE, such as local human capital efficiency and financial deepening, which needs more clarification, while most of the studies focus on human capital in general. Methodology: This study used a questionnaire based survey on a selected sample and used the SmartPLS 4 to analyze the data and conclude the results. With the help of quantitative techniques this data was collected from a sample of 8001 selected employees representing the DUBAI population. Only 376 were taken from those who had working experience in foreign companies in the UAE. Findings: The results show that the inflow foreign direct investment has a significant positive relationship with the local human capital efficiency in the UAE. The role of the mediator in this study was significant and partial mediation with inflow foreign direct investment. Recommendation: The most important question is about the availability of working in foreign companies. Also, the author mentioned that there is a gap in the human capital development study, and it has been recommended for future study.