Dubai Chamber of Commerce and Industry (DCCI) expects global foreign direct investment (FDI) flows to grow by 10% this year to reach $ 1.5 trillion, noting that despite this rise, foreign investment remains below the average value of investments in the last 10 years.

Developed economies are expected to support the global recovery of FDI inflows as the effects of tax reforms fade.These flows to developed economies range from $ 640 billion to $ 720 billion, with an expected annual growth of 15-30 percent in 2019.

Recovering flows

FDI inflows to Europe will increase by the end of this year by 60%, but the report noted that although the inflows have recovered, they remain about half the value of investments in 2016.

He pointed out that FDI inflows to Africa will grow by 15% this year, making it second, registering strong growth due to the expected acceleration in the economic growth of the continent and the advanced steps towards regional integration.

The report pointed to the stability of these flows to developing economies with an increase of about 5%, expecting other regions to achieve positive growth, albeit at modest rates, which supports the expectations of the flow of foreign direct investment in the world during 2019.According to data published by the United Nations Conference on Trade and Development Finally, last year saw a 13% drop in global FDI flows. The conference attributed the decline mainly to the apparent decline in FDI flows to developed economies, especially Europe.

good performance

In 2018, developing economies performed relatively well in terms of attracting FDI inflows, making them the leading destination globally, with global FDI accelerating by 10% due to the expected recovery in investment flows. Foreign direct to developed economies.

This expected recovery is supported by a 41% increase in the value of the announced start-up projects, which is a measure of planned and projected expenditures by FDI inflows.

According to the report, the expected increase in these flows may face a number of risks in the future, notably geopolitical risks, trade tensions and fears of a shift towards more protectionist policies, which may have negative effects on the prospects of foreign direct investment in the future.

However, the report pointed out that the expected increase in global FDI inflows has a positive outlook this year for the responses of respondents in a survey conducted by investment promotion agencies last year, where 76% of them answered positively about FDI flows to their national economies, compared to 45%. A positive response to global FDI flows.

Information and Communication

According to the results of the survey of investment promotion agencies, it is expected that most investments in advanced economies will be directed to information and communication, followed by professional services, financial services and insurance.

In developing and transition economies, the results of the survey predict more investment in agriculture, followed by food and beverages, and hence information and communication.

Many countries are seeking to attract investment to technology and innovation as one of the main drivers of economic growth. The advanced ranking of the ICT sector in attracting foreign direct investment is a reflection of the efforts of investment promotion agencies to attract investments in this sector.

Services sector

According to the Dubai Chamber of Commerce and Industry (DCCI) report, the total value of the world's announced start-up projects in the service sector is the largest, reaching $ 473.2 billion last year.

The report pointed out that the main economic activities in the field of services, consisting of construction and construction worth $ 112.9 billion, and electricity, gas and water ($ 102.1 billion), expected that the developed economies and developing Asia will be the most receiving for the founding investments in this area, and Africa is an attractive area to receive FDI flows in the fields of construction and public utilities.

- Outlook orientation

Most investments

In economies

Developed into a domain

the information

And communication.

- 60%

Rise in flows

Foreign investment

Direct to Europe

By the end of the year.