The United Arab Emirates (UAE) foresees reaching a historic milestone with a projected $30 billion in foreign direct investment (FDI) inflows this year, despite ongoing geopolitical tensions. Jamal Al Jarwan, Secretary General of the UAE International Investors Council, made this announcement during the Annual Investment Meeting (AIM) Congress 2024 in Abu Dhabi.
Al Jarwan emphasised that, despite geopolitical challenges, the UAE remains an attractive destination for foreign investment due to its stable economy and investor-friendly regulations. He expressed confidence in surpassing the previous year’s FDI inflows, which stood at $24 billion in 2022 and $27 billion in 2023.
The UAE’s resilience in attracting FDI is evident in its position as the second-highest recipient of new foreign investment projects, as per UNCTAD. Moreover, according to the World Investment Report 2023, the UAE recorded an FDI inflow of $22.7 billion in 2022.
A key factor contributing to the UAE’s attractiveness to investors is its successful diversification strategy. Over the past 50 years, the UAE has transitioned from reliance on oil and gas revenue to a more diversified economy. Currently, the non-oil sector contributes more than 70% to the UAE’s GDP, signalling its commitment to sustainable economic development.
Al Jarwan highlights the UAE’s robust economic outlook, projecting continued GDP growth despite geopolitical tensions. With more than 20% of global goods passing through its land, ports, or air, the UAE maintains a strategic position in global trade.
Looking ahead, the UAE aims to achieve a $1 trillion economy by 2031, supported by investments abroad totaling $2.5 trillion. Al Jarwan reaffirmed the UAE’s commitment to its investment strategy, emphasising its long-standing track record of executing strategic investments.
The UAE’s historic $35 billion investment agreement with Egypt for the development of Ras Al Hekma exemplifies its commitment to international investment partnerships. As the UAE continues to pursue its investment strategy, it remains a dynamic global business hub, attracting investors from around the world.
