UAE ranks first in region for growth potential with 4% FDI inflows – News

Total foreign capital inflows to reach US$20.7 billion in 2021

The UAE ranks first among MENA countries and 12th globally in terms of growth potential, according to a new study.

The survey by US consultancy Frost & Sullivans monitors the best future growth opportunities available to countries around the world based on a set of criteria related to the growth potential offered by governments. For example, policies aimed at boosting trade and attracting more foreign direct investment.

The U.S. ranks first in the study, followed by Norway and the U.K. third.

According to UNCTAD’s World Investment Report 2022, the value of foreign direct investment (FDI) inflows into the UAE achieved a growth rate of 4%. Total foreign investment inflows stood at US$20.7 billion (AED76 billion) in 2021, compared to US$19.884 billion (AED73.04 billion) in 2020 – despite the Covid-19 pandemic clouding investment volumes, trade and the world economy.

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The cumulative balance of FDI inflows increased to about $171.6 billion. The UAE has signed some 106 agreements with its trading partners to protect and encourage investment.

The UAE ranks first in Western Asia in foreign direct investment (FDI), accounting for 37% of the region’s total foreign direct investment (FDI) at US$55.5 billion.

The UAE ranks first in foreign direct investment (FDI) in the MENA region, accounting for 31% of the region’s total FDI inflows, amounting to US$66.6 billion.

ismail@khaleejtimes.com