Over 40% of the foreign direct investment (FDI) projects that Arab countries attracted between 2003 and 2021 went to the UAE.
The Arab Investment Export Credit Guarantee Corporation (Dhaman) reports that during the past 19 years, 14,443 overseas projects totaling $1.3 trillion have been lured to Arab countries.
According to the Kuwait-based corporation’s 37th annual report, between 2003 and 2021, the number of FDI projects into the region increased by 37%, while their expenditure increased by 1%.
According to the research, these developments have generated about two million new work prospects.
According to the corporation’s Director-General Abdullah Al Sabeeh, the number of foreign projects into the region increased by 15% while their capex increased by 86% to $21 billion during the first quarter of this year compared to the same period in 2021.
He noted that Western Europe was the primary investor in the region in 2021, Saudi Arabia was the top destination for capital expenditures ($9.3 billion), and the UAE was the top country for the number of projects (455).
UAE tops UN report
The United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2022 placed the UAE as the best Arab nation for attracting FDI in 2021.
With FDI flows rising from $19.88 billion in 2020 to $20.7 billion in 2021, the UAE continued to be the top beneficiary.
According to the research, global FDI flows reached $1.58 trillion last year, up 64% from the previous year and back to pre-pandemic levels.
With a record number of 418 greenfield projects, Dubai, on the other hand, came in top place globally in luring foreign direct investment in 2021. Last year, the emirate finished third.
According to data, Dubai improved from fourth place last year to first in the Middle East and North Africa (MENA) region and third overall for FDI capital inflows. Dubai ranks first in the MENA region and third globally for reinvestment FDI projects (up from fourth last year), and seventh globally for FDI capital inflows (up from eleventh last year). Dubai improved from sixth place last year to first in the MENA region and fifth internationally in terms of FDI job creation.