UAE FDI was second highest in the world last year

UAE FDI was second highest in the world last year

Greenfield announcements on foreign direct investment (FDI) in the UAE rose to the second highest in the world after the US, a report showed on Wednesday.

The UAE’s FDI greenfield announcements rose by 28 per cent, the United Nations Conference on Trade and Development (Unctad) Investment Trends Monitor for January showed.

Foreign Direct Investment (FDI) flow into the UAE recorded a 10 per cent growth to $22.73 billion in 2022– a record high for the country – compared to $20.66 billion in 2021.

In West Asia, FDI remained stable, with a growth of two per cent. Greenfield numbers also jumped in Saudi Arabia, by 63 per cent, the report showed.

Global FDI flows in 2023, at an estimated $1.37 trillion, showed a marginal increase of 3 per cent) over 2022, defying expectations as recession fears early in the year receded and financial markets performed well.

“However, economic uncertainty and higher interest rates did affect global investment. The headline increase was due largely to higher values in a few European conduit economies; excluding these conduits, global FDI flows were 18 per cent lower,” the report said.

In developed countries, FDI in the European Union jumped from negative $150 billion in 2022 to positive $141 billion because of