$ 171.6 billion foreign direct investment balance in UAE

Abu Dhabi: “The Gulf”

The United Arab Emirates ranks first in the Arab world and 19 worldwide in terms of its ability to attract foreign direct investment, according to the World Foreign Trade Direct Investment Report for the year 2022 issued by the United Nations Conference on Trade and Development (UNCTAD). The country also ranks 17th globally in outgoing investment flows to countries around the world, with a total of $ 22.5 billion, with a growth rate of 19% over the year 2020.

integrated national plans

In this context, Abdullah bin Touq Al Marri, Minister of Economy, said that the positive results and indicators mentioned in the report confirm that the UAE is gradually moving towards achieving its ambitious goals of strengthening the national economy. and ensure its global competitiveness, in the light of the support and prescriptions of the rational leadership, and in line with the objectives and principles The fiftieth anniversary and the determinants of the UAE Centenary 2071, emphasize that the national efforts to attract the developing investment environment in the country and preparing the potential for growth for investment within and outside the country are ongoing efforts in line with integrated national plans, aimed at consolidating the country’s position on the global investment map.
He added: “The progress documented in the report is added to the series of achievements the UAE has recently achieved, thanks to the vision and prescriptions of its wise leadership, which begins with its rapid recovery from the effects of the” Covid -19 “pandemic, and achieving the highest growth in the region in its gross domestic product. At a rate of 3.8%, including the launch of the fifty projects and integrated strategic initiatives aimed at internal and promote the country’s external growth process, pursuing ambitious goals and a long-term development path, all aimed at increasing the attractiveness of the investment environment in the country, while enabling and developing Emirati investments that are relevant to all markets; Among them is the Investopia Global Investment Summit, which aims to gauge the UAE’s position in the world of future investments and the current we consolidate economy, and aim to attract 550 billion dirhams of foreign investment by 2030.

global competitiveness

In turn, dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the investment environment in the UAE was achieving successive developments in the light of the support and prescriptions of the wise leadership, and emphasized that the report achieved the high and increasing competitiveness through the attractive investment climate in the UAE, thanks to flexible legislation and laws. instituted by the state in the light of the objectives and principles of the fifties, and the transformation initiatives that have contributed to the development of investment potential in the state, in particular the provision of 100% foreign ownership of investments and projects, and the program of global economic agreements, which provides the state’s trade and investment partnerships with a wide range of strategic regional and global markets and the multiple initiatives in the development and diversification of exports, and the development of the entrepreneurship system, intellectual property, innovation and the residence system, in a way that increases the country’s attractiveness to talents and creators and to invest in emerging and innovative projects.

Report details

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 has attracted foreign direct investment in the amount of $ 20.7 billion in 2021, with a growth rate of 4% from the year 2020, tops the Arab world with 40% of the The total foreign direct investment flowing to the group of Arab countries, amounting to $ 52.9 billion.
The investments received by the state included very important economic sectors and activities; Where the oil, gas and energy sectors accounted for 59% of the total foreign direct investment entering the country, followed by the information and communications technology sector with 10%, and the banking, financial and insurance services sector accounted for 7% of the total attracted. , compared with 7% also for the real estate sector and management and development activities, 6% for the healthcare sector and 5% for the manufacturing sector.
Many sectors saw growth in attracting foreign direct investment during 2021 compared to 2020, at varying rates, as the manufacturing sector achieved the largest growth jump during the comparison period by 13%, while the health sector achieved 9% growth and the communications and technology sector grew by 6%, while the real estate sector saw a growth of 4%, energy 3% and services 2%.

In addition, the UAE ranked first in the West Asia region, accounting for 37% of total inflows to the region, amounting to $ 55.5 billion, and also first in the Middle East and North Africa. , which accounts for about 31% of the foreign direct investment received in this region, amounting to $ 66.6 billion.
According to the report, the cumulative balance of foreign investment coming into the country at the end of 2021 totaled $ 171.6 billion, achieving a 14% growth rate compared to the 2020 balance sheet, which is about $ 151 billion amounted to. at that point.
The report indicated that the UAE worldwide occupies the fifth position in the number of new foreign direct investment projects announced by destination in 2021 with 535 projects, which saw a 39% increase compared to the number of projects at the end of 2020, which amounted to 384. The solar project announced in Dubai in 2021 for $ 633 million, by DHL Global Forwarding of Germany and TOTAL of France.
The report highlighted that the UAE is among the top six economies within the group of developing countries in Asia, in which incoming flows are still highly concentrated, and include China, Hong Kong, Singapore, India and Indonesia.
With respect to issued investments, the report indicated that the cumulative balance of foreign investment issued by the state by the end of 2021 was more than $ 215 billion, achieving a growth rate of 11.7 percent compared to the balance sheet in 2020, which amounted to a total of $ 192.5 billion over time.
The UAE accounted for more than 40% of the total outflow from West Asia, amounting to about $ 56 billion, and about 40% of the total outflow from the Middle East and North Africa region, and more than 43% of the total outgoing flow. flows from Arab countries to the world, amounting to $ 51.9 billion.
In this regard, the report pointed to a new project by the UAE company GlobalFoundries worth $ 4 billion, which was announced as one of the new projects to build a chip manufacturing plant in Singapore, in addition to the acquisition by DP World of Syncreon NewCo, a provider of long-distance truck services, for $ 1.2 billion. .
The report touched on the measures taken by the state through the introduction of the virtual license by the Abu Dhabi government that allows non-resident foreign investors to obtain an economic license to do business in Abu Dhabi without any prior residency procedures and from anywhere outside the United Arab Emirates. In order to strengthen governments in both developed and developing economies their efforts to support the growth of sustainable finance by developing the necessary policies and regulatory frameworks, the report indicated that the UAE is among the group of countries that have a number of key areas of sustainable financial policies such as the framework and national guidelines, and the field of disclosure of sustainability.

America is number one in the world

Globally, the UNCTAD report confirmed the recovery of global foreign investment last year to pre-pandemic levels to reach $ 1.6 billion, an increase of 64%, and this recovery is expected to continue worldwide during the current year , but the recovery of investment in new areas of industry It remains fragile, especially in developing countries, and this fragile growth of real productive investment is likely to continue until 2022.
According to the report, the United States remained the largest recipient of foreign direct investment with $ 367.3 billion, an increase of 143% over the year 2020. The increase in corporate profits had a direct impact on reinvested earnings, leading to ‘ a record level of $ 200 billion. In addition, equity investments increased by 54%, reflecting a sharp increase in cross-border mergers and acquisitions. Announcements of new founding projects also increased by 28% to $ 86 billion. China is second in the world, with a total inflow of about $ 181 billion, an increase of 21% over 2020, and Hong Kong in third place with an inbound flow volume of about $ 141 billion, an increase of 4%.
The report pointed out that foreign direct investment flows to developing countries in Asia increased by 19% to reach $ 619 billion in 2021, as flows continued to grow for the third consecutive year, confirming the resilience of the developing economy in Asia . especially during the pandemic period, and China was the main beneficiary, followed by Hong Kong, Singapore, India, the United Arab Emirates and Indonesia.

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