His Highness Vice President and Prime Minister of the UAE and ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, recently disclosed that the UAE attracted a record-breaking $23 billion in foreign direct investment (FDI) in 2022. This is a 10% increase over the prior year and ranks the UAE as the 16th foreign direct investment (FDI) destination globally, moving up six spots from 2021.
Despite a 12% reduction in worldwide FDI flows, the UAE reached this milestone, according to the UNCTAD’s World Investment Report 2023. With a total of 997 projects declared, the UAE is ranked fourth in the world for greenfield investment projects, after the US, the UK, and India, and first in the region for FDI inflows. Impressively, this is a rise of 80% from the prior year.
Sheikh Mohammed expressed his appreciation for the regulatory, legislative, and service organisations that helped make the UAE a centre for foreign investment. He emphasised the desire to reach additional historic milestones in the upcoming year as he looked forward.
The findings show that, particularly in terms of greenfield investment, the UAE is becoming more and more attractive to foreign investors in the post-Covid economy. The fact that the GCC’s top FDI destination, bringing in 61% of all FDI pledged to the area in 2022, highlights the country’s allure.
Additionally, the UAE is now a source of FDI in addition to being a destination for investors. The country’s outflows rose by 10% to $25 billion in 2022, moving it up from 20th position in 2021 and placing it as the 15th largest investor in the world.
These accomplishments support the UAE’s long-term economic diversification objectives by creating a vibrant and robust business ecosystem that accepts different types of capital. Global connection, strategic location, laissez-faire regulation, and a trained workforce are all part of the nation’s value offer. Additionally, it is aggressively paving the road for investments in new sectors including advanced manufacturing, agritech, healthcare, and e-commerce.
Ambitious investors, company executives, and entrepreneurs have a platform to expand into the high-growth markets of the Middle East, Asia, and Africa thanks to the UAE’s rising prominence as a worldwide commercial hub. It depicts a country that aims to create possibilities and establish international links.
From October 16 to October 20, 2023, Abu Dhabi will play home to UNCTAD’s 8th World Investment Forum, which will concentrate on sustainable development. In order to address important economic issues and opportunities, including food security, energy, health, supply-chain resilience, infrastructure, and capacity growth in the developing world, the event will bring together top government officials, CEOs, and other investment players.
