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UAE attracts foreign direct investment of $23bn in 2022

The country remains the leading recipient of global FDI in the GCC, attracting 61 per cent of all foreign investments into the region last year

by Kudakwashe Muzoriwa

July 5, 2023

UAE attracts foreign direct investment of $23bn in 2022

Image credit: The Government of Dubai Media Office

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai said that foreign direct investment (FDI) into the country increased by 10 per cent to $23bn (Dhs84bn) in 2022, compared to the previous year despite a plunge in global FDI activity.

The latest data from the United Nations Conference on Trade and Development (UNCTAD) ranks the UAE 16^th in the global rankings for FDI attraction, up six places compared to 2021.

The UAE remains the leading recipient of global FDI in the GCC, attracting 61 per cent of all FDI committed to the region last year, according to the UNCTAD’s World Investment Report 2023 report. The Emirates is also ranked the fourth largest recipient of greenfield investment projects in the world with a total of 997 projects, after the US, the UK and India – an 80 per cent growth compared to 2021.

“The UAE has achieved the highest foreign direct investment (FDI) inflows in its history in 2022, reaching $23bn despite a 12 per cent decline in global FDI movement,” Sheikh Mohammed said. The UAE is not only a destination for capital but a source. FDI outflows from the Gulf state jumped 10 per cent to $25bn in 2022, making the country the 15^th largest investor globally, climbing from 20^th in 2021.

ضمن نتائج تقرير الاستثمار العالمي 2023 الذي تطلقه منظمة الأمم المتحدة للتجارة والتنمية (الأونكتاد)… حققت دولة الإمارات في 2022 أعلى رقم في تاريخها لتدفقات الاستثمار الأجنبي المباشر بقيمة 84 مليار درهم (23 مليار دولار) رغم الانخفاض العالمي بنسبة 12% في حركة الاستثمارات الأجنبية…

— HH Sheikh Mohammed (@HHShkMohd) July 5, 2023

The global FDI figures represent another major milestone in the country’s progress towards its long-term economic diversification ambitions. The UAE remains committed to establishing a dynamic, flexible and resilient business ecosystem that welcomes all kinds of capital – financial, technological and human.

“We express our appreciation to all regulatory, legislative and service entities who contributed to strengthening the position of the UAE as one of the best international investment hubs,” Sheikh Mohammed said, adding that the country’s aim in the coming year is to achieve more historic milestones.

UAE’s investment strategy

Meanwhile, the figures from the UNCTAD cement the UAE’s position as a global business hub – a compelling platform for ambitious investors, business leaders and entrepreneurs to expand into the high-growth regions of the Middle East, Asia and Africa.

The Emirates is now creating new pathways for investments that will support emerging industries such as fintech, agritech, healthcare, e-commerce and advanced manufacturing.

Earlier this month, the UAE said it is setting up a new federal ministry of investment to develop the country’s investment strategy both globally and domestically.

The ministry’s objectives would include stimulating the investment environment in the UAE and making the country’s legislation and procedures more competitive to attract global investment. Mohamed Hassan Alsuwaidi, who is currently the CEO of Abu Dhabi wealth fund ADQ and deputy chairman of renewables firm Masdar, was appointed the investment minister.