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The United Arab Emirates ranked 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 is 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.
In this context, His Excellency 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 the national economy. strengthen and ensure its global competitiveness, in the light of the support and prescriptions of the rational leadership, and in line with the objectives of The principles of the fiftieth anniversary and the determinants of the UAE Centenary 2071, emphasizes that the national efforts to to develop the attractiveness of the investment environment in the country and to create the potential for growth for investment within and outside the country, ongoing efforts are in line with integrated national plans aimed at consolidating the country’s position on the global investment map .
His Excellency added that the progress documented in the report is added to the range of achievements the UAE has recently achieved thanks to the vision and prescriptions of its wise leadership, beginning 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% Through its launch of the fifty projects and the integrated strategic initiatives aimed at the process of internal and external promote the growth of the country in line with ambitious goals and a long-term development path, all of which serve to increase the attractiveness of the investment environment in the country, while at the same time enabling and developing Emirati investments that reach out to all markets of the world including the Investopia Global Summit The investment, aimed at improving the UAE’s position in the world of future investments and consolidate the new economy, and aims to attract 550 billion dirhams of foreign investment by 2030.
In turn, his Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the investment environment in the UAE is achieving successive developments in the light of the support and prescriptions of the wise leadership, and emphasized that the report reflects the high and increasing competitiveness achieved. due to the attractive investment climate in the UAE, thanks to legislation and laws The flexibility established by the state in the light of the objectives and principles of the fifties, and the transformation initiatives that contributed to the development of investment capabilities in the state, especially the providing 100% foreign ownership of investments and projects, and the Global Economic Agreements program, which enhances the state’s trade and investment partnerships with a wide range of strategic regional and global markets. 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.
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 the year 2021 amounting to $ 20.7 billion, with ‘ a growth rate of 4% more than the year 2020, tops the Arab world with 40% of the total foreign direct investment flowing to the group of Arab countries, amounting to 52.9 billion US dollars.
The incoming investment to the state included very important economic sectors and activities, as the oil, gas and energy sector accounted for 59% of the total foreign direct investment coming in to the state, followed by the information and communication technology sector with 10 %, and the banking, financial and insurance services sector attracted 7% of the The total, compared to 7% also for the real estate 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 grew by 9%. %, 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 ranks 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 approximately 31% of the total inflow of foreign direct investment received in this region, amounting to $ 66.6 billion.
According to the report, the cumulative balance of foreign investment that entered the country at the end of 2021 totaled $ 171.6 billion, achieving a growth rate of 14% compared to the 2020 balance sheet, which is about $ 151 billion amounted to. at that point.
The report indicated that the UAE worldwide ranks fifth 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 projects. , and the report quoted With a solar power project announced in Dubai in 2021 for $ 633 million, by Germany’s DHL Global Forwarding and France’s TOTAL.
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.
Regarding issued investments, the report indicated that the cumulative balance of foreign investments issued by the state by the end of 2021 amounted to more than $ 215 billion, achieving a growth rate of 11.7 percent compared to the balance in 2020, which at the time amounted to a total of 192.5 billion dollars.
The UAE accounted for more than 40% of total outbound flows from West Asia, amounting to about $ 56 billion, and about 40% of total outbound flows 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 US dollars.
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. .
He addressed 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 States. 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 field of national framework and guidelines, and the field of disclosure of sustainability.
Globally, the UNCTAD report confirmed the recovery of global foreign investment flows last year to pre-pandemic levels to reach $ 1.6 trillion, 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, investment increased Shares 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 rankings, with a total inflow of about $ 181 billion, an increase of 21% from 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 $ 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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