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DUBAI (Reuters) – Foreign direct investment (FDI) inflows to the United Arab Emirates will rise 10 percent in 2022 from the previous year to reach a record $23 billion, the United Nations trade agency said in a report on Wednesday.
Global foreign direct investment has fallen by 12% this year, the United Nations Conference on Trade and Development (UNCTAD) said in its World Investment Report 2023.
The United Arab Emirates, the Arab world’s second-largest economy, attracted about 60 percent of total foreign direct investment from the six Gulf Cooperation Council (GCC) countries, more than doubling to $37 billion, UNCTAD said.
FDI into Saudi Arabia, the region’s largest economy and the world’s largest crude oil exporter, will drop by nearly 60% to $7.9 billion in 2022.
The Gulf countries, which rely heavily on hydrocarbons for their income, are all planning to diversify their economies and revenue sources and attract foreign investment.
The UAE is one of the most advanced countries in this process, developing industries such as financial services, trade and tourism, and implementing social and business reforms.
Earlier this week, China announced the creation of a new federal investment ministry to develop global and domestic strategies to counter growing economic competition from its neighbours.
The UNCTAD report also said the UAE attracted the fourth-highest number of greenfield projects in the world last year.
The United Arab Emirates is also a source of investment, with foreign investment of US$25 billion last year, an increase of 10% over the previous year.
(Reporting by Rahna Uppal; Editing by David Holmes)
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