UNCTAD: Ranked 17th in the world in outbound investments, with a total of $22.5 billion
The UAE is the first in the Arab world and the 19th globally in attracting foreign direct investment
The report indicated that DP World purchased Syncreon NewCo for shipping services for $1.2 billion.
Photography: Ahmed Ardeti
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The UAE ranked first in the Arab world, and 19 globally, in terms of its ability to attract foreign direct investment, according to the World Foreign Direct Investment Report for the year 2022, issued by the United Nations Conference on Trade and Development (UNCTAD).
It also ranked 17th globally in outbound investment flows to countries of the world, with a total of $22.5 billion, with a growth rate of 19% over 2020.
steady steps
The Minister of Economy, Abdullah bin Touq Al Marri, said that the positive results and indicators mentioned in the report confirm that the UAE is moving steadily towards achieving its ambitious goals of strengthening the national economy and ensuring its global competitiveness.
He stressed that the progress documented in the report is added to the series of achievements that the UAE has achieved recently, thanks to the vision and directives of its leadership, starting with its rapid recovery from the effects of the “Covid-19” pandemic, and its achievement of the highest growth in the region in its gross domestic product, at a rate of 3.8%, including the launch of the "50 projects" and the integrated strategic initiatives.
successive developments
For his part, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, said that the investment environment in the UAE is achieving successive developments, in light of the support and directives of the leadership.
He stressed that the report reflects the high and increasing competitiveness achieved by the attractive investment climate in the UAE, thanks to the flexible legislation and laws that the state has introduced, in light of the objectives and "Fifty Principles", and transformational initiatives that contributed to the development of investment possibilities in the country, most notably the provision of foreign ownership of investments and projects. 100%, and the Global Economic Agreements Program, which enhances the country’s trade and investment partnerships with a wide range of strategic regional and global markets, and multiple initiatives in the development and diversification of exports, and the development of the entrepreneurship system, intellectual property, innovation and the residence system.
direct investments
The report, which monitors the results of foreign direct investment for the year 2021 in the countries of the world, compared to 2020, indicated that the UAE attracted foreign direct investment in 2021 amounting to $20.7 billion, with a growth rate of 4% from 2020, topping the Arab world with 40% Of the total foreign direct investment flowing to the group of Arab countries, which amounted to 52.9 billion dollars.
Sectors Distribution
The oil, gas and energy sector accounted for 59% of the total foreign direct investments incoming into the country, followed by the information and communications technology sector with 10%, while the banking, financial and insurance services sector attracted 7% of the total, compared to 7% also for the real estate sector and management and development activities 6% for the healthcare sector, and 5% for the manufacturing sector.
attract investment
Many sectors witnessed a growth in attracting foreign direct investment during 2021, compared to 2020, as the manufacturing sector achieved the largest growth jump by 13%, while the health sector achieved growth by 9%, and the communications and technology sector achieved 6%, while the real estate sector witnessed 4% growth, 3% energy, 2% services. West Asia
In addition, the UAE ranked first in the West Asia region, accounting for 37% of the total inflows to the region, amounting to $55.5 billion, and also ranked first in the Middle East and North Africa, accounting for about 31% of the total Inflows of foreign direct investment into this region amounting to 66.6 billion dollars.
According to the report, the cumulative balance of foreign investment incoming to the country at the end of 2021 amounted to a total of 171.6 billion dollars, achieving a growth rate of 14% compared to the balance of 2020, which amounted to approximately 151 billion dollars.
number of projects
The report indicated that the UAE ranked fifth globally in the number of new foreign direct investment projects announced by destination in 2021, with 535 projects, an increase of 39% compared to 2020, which recorded 384 projects.
The report cited the solar energy project announced in Dubai in 2021 for $633 million, by two companies: Germany's DHL Global Forwarding and France's Total.
The report emphasized that the UAE came among the top six economies within the group of developing countries in Asia, in which incoming flows are still highly concentrated, and includes China, Hong Kong, Singapore, India, and Indonesia.
outbound investments
With regard to issued investments, the report showed that the cumulative balance of foreign investment issued by the state amounted to more than 215 billion dollars by the end of 2021, achieving a growth rate of 11.7 percent, compared to the balance of 2020, which amounted to 192.5 billion dollars.
The UAE accounted for more than 40% of the total outbound flows from West Asia, amounting to approximately $56 billion, and also about 40% of the total outbound flows from the Middle East and North Africa region, and more than 43% of the total outbound flows from other countries. Arab world, amounting to 51.9 billion dollars.
The report pointed to a new project for the UAE company “GlobalFoundries” worth four billion dollars, which was announced as one of the new projects to build a chip-making plant in Singapore, in addition to the purchase by “DP World” of “Syncreon NewCo” for long-distance trucking services, for 1.2 billion. dollar.
The UAE in the UNCTAD report:
■ Attracted foreign direct investment of $20.7 billion in 2021, a growth of 4% from 2020.
■ It accounts for 40% of the investments coming to the Arab countries, 37% of those coming to West Asia, and 31% of the inflows to the Middle East and North Africa.
■ It ranked fifth globally in the number of new foreign direct investment projects announced in 2021, with 535 projects.
■ 43% of Arab investments issued to the world are Emirati.
■ It accounts for 40% of West Asia's exports, and also 40% of Middle East and North African exports to global markets.
The cumulative balance of foreign investment issued by the state exceeded $215 billion.
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