The United Nations’ trade agency reportedthat FDI inflow into the United Arab Emirates UAE hit a record $23 billion in 2022, up 10% from the previous year.
The United Nations Conference on Trade and Development (UNCTAD) said in its World Investment Report 2023 that FDI dropped by 12% worldwide in the year.
According to UNCTAD, foreign direct investment (FDI) into the six-nation Gulf Cooperation Council (GCC) bloc more than doubled to $37 billion thanks mostly to the United Arab Emirates (UAE), the Arab world’s second largest economy.
Nearby Saudi Arabia, the region’s largest economy and the world’s top crude exporter, saw a reduction of nearly 60% in foreign direct investment (FDI) flows to $7.9 billion in 2022. All of the Gulf governments, which rely heavily on hydrocarbons for revenues, are working on strategies to diversify their economies and attract foreign investment.
UAE economy has grown a lot
The United Arab Emirates (UAE) is one among the forerunners in this movement, having grown key industries including finance, trade, and tourism while also enacting important social and economic reforms.
As it faces rising economic competition from neighbors, the government this week announced the creation of a new federal investment ministry to formulate a global and domestic strategy.
According to the UNCTAD report, the United Arab Emirates attracted the fourth-most greenfield projects worldwide in 2017. Investments abroad from the UAE totaled $25 billion in 2016, up 10% from the year before.
To read our article about “Umrah season, Saudi Arabia expects huge 10 million pilgrims” click here.
