UAE ranks second globally in new FDI projects

The UNCTAD report showed that FDI outflows stood at US$ 22.328 billion compared to US$ 24.833 billion in 2022…reports Asian Lite News

The UAE took the second place after the United States in greenfield FDI project announcements in 2023 at 1,323, an increase of 33 percent compared with 2022, according to the World Investment Report 2024, published today by the UN Trade and Development (UNCTAD).

In terms of FDI inflows in 2023, the UAE attracted US$ 30.688 billion compared to US$ 22.737 billion in 2022, a y-o-y growth of 35 percent.

The UNCTAD report showed that FDI outflows stood at US$ 22.328 billion compared to US$ 24.833 billion in 2022.

FDI outflow stock grew to US$ 262.208 billion in 2023 from US$ 239.880 billion in 2022.

The United Arab Emirates gained two places in the ranking of top destinations for greenfield projects, after entering the top five in 2022.

Meanwhile, the UAE contributed 10 percent of Bahrain’s foreign direct investment (FDI) stocks, taking the third place, according to the latest figures.

A statement issued by Bahrain Economic Development Board (Bahrain EDB), said Bahrain has secured a record US$6.8 billion FDI inflows in 2023, according to the latest World Investment Report (WIR 2024) by the United Nations Conference of Trade and Development (UNCTAD).

Marking one of the highest ratios in the world, Bahrain’s FDI stocks relative to GDP stood at 99.7 percent as of the end of 2023, a figure significantly higher than the global average of 46.9 percent.

According to Bahrain’s Information & eGovernment Authority, the top countries contributing to Bahrain’s FDI stocks as part of a diverse portfolio include Kuwait (36 percent), Saudi Arabia (23 percent) and the UAE (10 percent).

The figure tops the previous record set in 2022, marking a huge increase of 148 percent from US$2.8 billion. This contributed to the growth of cumulative inward FDI stocks, which climbed from US$36.2 billion in 2022 to US$43.1 billion in 2023.

Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, said, “The milestone FDI inflows attracted in 2023 reflects the strength of Bahrain’s value proposition and continued standing as a trusted destination of choice for regional and global investors seeking best value operating costs in a strategic location that serves as an ideal gateway to the region and beyond.”

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