Despite the United Nations estimates that it decreased by 42% globally last year due to the pandemic

Mohammed bin Rashid: 73 billion dirhams of foreign direct investment to the UAE, with a growth of 44.2% during 2020

• Foreign direct investment received into the UAE included all sectors and economic activities.

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, said in a tweet on Twitter: “Despite the United Nations estimates that foreign investment flows worldwide will decrease by 42% in 2020 due to the pandemic, the UAE is investigating A 44% growth in foreign investment coming into our country in 2020, compared to 2019, to reach 73 billion dirhams ... Crisis management creates a return ... and management crises destroy gains.

In addition, foreign direct investments incoming to the UAE achieved a growth of 44.2% during 2020, compared to 2019, reaching 19.88 billion dollars (73.1 billion dirhams), despite the repercussions of the "Covid-19" pandemic, which cast a shadow over The volume of investment, trade and world economies.

The cumulative balance of inflows of foreign direct investment rose to about $ 174 billion (640.3 billion dirhams), achieving a growth of 12.9% during the same period.

These investments included all sectors and economic activities, while focusing on the oil and gas sectors, as the Abu Dhabi National Oil Company (ADNOC) concluded huge investment deals and partnerships with a number of foreign companies that contributed to this growth, and investments focused on sectors that serve modern technologies. Underpinning the digital economy, such as artificial intelligence, the Internet of Things and blockchain, innovative medical technologies, high-speed transportation, augmented virtual reality, robotics and self-driving cars, and renewable energy.

As for Emirati investment flows to the world, they reached in 2020 about $ 9.2 billion (33.8 billion dirhams), and proved highly efficient in regional and international markets, and in various vital economic sectors, as they are considered sustainable quality strategic investments. Enhancing the competitiveness of the national economy in a number of advanced global industries and services, such as the aviation industry, air transport services, transportation services and mining, in addition to the great progress it has made in the field of renewable energy.

The investment scene

The Minister of Economy, Abdullah bin Touq Al-Marri, said, “The investment and economic scene in the UAE has succeeded in achieving an advanced position globally, in addition to its regional leadership, thanks to the directives of the wise leadership, as the state continued to progress in global indicators related to the flow of foreign investments and the ease of doing business, Once again, the numbers of foreign direct investment inflows received into the country during the past year confirm the validity of the government approach, policies and steps being taken to enhance the flexibility and attractiveness of the business environment, through an integrated system of policies and procedures, which are based on the continuous modernization of legislative and regulatory frameworks, and the continuing launch of government support initiatives. It aims to improve the performance of various sectors, stimulate the national economy and accelerate its recovery and recovery, and we will continue to move forward in developing initiatives that raise the efficiency of the investment environment and increase opportunities, especially in priority sectors, to consolidate the position and competitiveness of the state regionally.And globally ». Bin Touq explained that “the progress made by the UAE in the index of attracting foreign investments confirms the positive outlook and confidence among investors, based on the government's strong commitment to economic diversity, innovation, infrastructure and ease of doing business, which is a new evidence of the strength and durability of the country's economy and its ability to overcome challenges. That permeates the global economic scene today ».

Global indicators

For his part, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al-Zeyoudi, said, “The position the UAE occupies in global indicators to attract foreign direct investment was not a coincidence, but rather the product of a clear vision adopted by our wise leadership to strengthen the UAE’s position as a global investment destination. What is reflected in the state's policies for the development of foreign direct investment, as the state is keen to formulate strategies that enhance its leadership in attracting qualitative investment, which supports development plans based on innovation, knowledge, technology and the digital economy, in accordance with the National Agenda 2021 and the UAE Centennial 2071 ”.

3 places

In terms of its ability to attract foreign direct investment, the UAE advanced three ranks over it in 2018, and ranked 24th at the global level during 2019, while the UAE ranked first in the West Asian region in attracting foreign direct investments. By this, it acquired 49.4% of the total inflow of foreign investment into the countries of the West Asian region for the year 2019, while it maintained its 19th position in the world for outflows of foreign direct investment to the countries of the world, according to the classification of "UNCTAD" through the World Investment Report. 2020. The balance of the foreign direct investments coming into the UAE until the beginning of 2020 is distributed according to the continents, according to the relative importance as follows:Asia, then Europe, followed by North America, then Africa, and at the level of countries, the United Kingdom and Northern Ireland come first, India, third China, fourth British Virgin Islands, Saudi Arabia fifth, then Switzerland, followed by France, Netherlands, America, and Japan.

As for the sectors in which the balance of direct investments received into the state is distributed until the beginning of 2020, wholesale and retail trade, repair of vehicles and motorcycles came first, real estate activities ranked second, financial and insurance activities ranked third, and mining and quarrying came fourth. Then the manufacturing industry ranked fifth, followed by the construction sector, then professional, scientific and technical activities.

The first place in the Arab world

The UAE ranked first in the Arab world and regionally, and the 15th in the world in the "Kearney" index of confidence in foreign direct investment for the current year, up four ranks compared to last year, and outperforming a number of major global economies in the general ranking of the index, such as Singapore, Australia, Portugal, Denmark and Ireland. Brazil and Finland.

It is noteworthy that the United Nations Conference on Trade and Development (UNCTAD) had estimated a decrease in the volume of total inflows of foreign direct investment worldwide during the year 2020, at a rate of 42%, and the same applies to the group of West Asian countries, at a rate of about 24% due to the outbreak of the virus. Corona »to the world and the complete and partial closures in some countries of the world, but the UAE has achieved tangible growth in this matter despite the uncertainty prevailing in the global economy, in light of the precedence that the country has achieved in dealing with the pandemic and limiting its repercussions, as the UAE recorded the highest rates Globally vaccination.

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