New UNCTAD report highlights UAE’s position as one of world’s best investment hubs
Despite a 12% decline in global Foreign Direct Investment movement, the United Arab Emirates recorded its highest-ever FDI inflow last year at $22.7 billion – up 10% from $20.6 billion in the year before – entering the list of top 20 economies.
Additionally, the country also became the fourth largest recipient of greenfield projects – at 997 – following the US, the UK and India, seeing a massive 84% increase compared to 2021.
The numbers arrive as the United Nations Conference on Trade and Development (UNCTAD) released the annual World Investment Report 2023.
HH Sheikh Mohammed bin Rashid Al Maktoum noted that the Emirates achieved record investment despite a decline in FDI inflows globally. The Vice President and Prime Minister of the UAE and Ruler of Dubai thanked all regulatory, legislative and service entities involved for bolstering the country’s position as one of the world’s best international investment hubs.
UAE Makes Achieving More Historic Milestones Its Priority
With impressive results, the Emirates has made its way into the list of the top 20 countries for FDI inflows. It reached the 16th spot from 22 in the year before, becoming the only Arab country to grab the marvelous feat.
It’s the most attractive destination in the GCC, attracting 61% of global FDI coming to the region, said Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade. These results confirm the country has made a “robust rebound” from the global pandemic, he added.
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In addition to attracting heavy FDI inflows, the Emirates has also made noteworthy investments globally. Compared to $22.5 billion in 2021, FDI outflows reached $24.8 billion last year – helping the nation grab the 15th position, followed by Saudi Arabia in the 17th.
Stable Political Environment Could Be The Key
The UAE’s remarkable growth has been underpinned by political stability and a flourishing economic climate, said Ahmed Jasim Al Zaabi, Chairman, Abu Dhabi Department of Economic Development.
He underlined the country’s position in terms of FDI outflows, highlighting its help for other countries to grow and provide jobs to millions of people.
The Emirates also received the fourth-largest number of greenfield projects last year, with nearly a thousand ambitious ventures announced. Two of the largest projects include a green hydrogen plant and a neutron therapy hospital, medical university and convention centre.
Developing Countries Need Help
The UNCTAD called for urgent support for developing countries in order to enable them to attract more investment for a quicker transition to clean energy. The annual UN report highlighted a 12% decline in global FDI movement, blaming lower volumes of financial flows and transactions in developed countries for it.
The slowdown was mainly a result of overlapping crises: Russia’s invasion of Ukraine, debt pressures, and high food and energy prices. As per the report, much of the growth in international investment in renewable energy has been concentrated in developed countries.
Developing countries require renewable energy investments too but are failing to attract sufficient foreign direct investment. These countries need help for the world to reach climate goals by 2030.
