Connect with us

News

UAE takes second place after US in Greenfield FDI project announcements in 2023

cropped ramez spector.jpg

Published

on

UAE takes second place after US in Greenfield FDI project announcements in 2023

The latest World Investment Report (WIR 2024) by the UN Conference of Trade and Development (UNCTAD) has highlighted that global foreign direct investment (FDI) fell by 2% to $1.3 trillion in 2023 amid an economic slowdown and rising geopolitical tensions.

The downturn in project finance affected sustainable development, with new funding for Sustainable Development Goals (SDGs) sectors dropping over 10%. This hampers efforts to achieve the 2030 Agenda and calls for urgent policy action.

Tight financing conditions led to a 26% drop in international project finance deals, critical for infrastructure investment. International project finance significantly help poorest countries, making them more vulnerable to the global downturn in this type of investment.

UAE secures second spot in new FDI projects in 2023

The UAE took second place globally in Greenfield FDI project announcements in 2023 at 1,323, an increase of 33% compared to the year before, according to the latest report by UNCTAD. The US comes first in the list.

The Gulf state gained a couple of places in the ranking of top destinations for Greenfield projects, since entering the top five in 2022. In terms of foreign direct investment (FDI) inflows in 2023, the nation attracted $30.688 billion in a year-on-year growth of 35%.

The report also highlighted that the UAE’s FDI outflows stood at $22.328 billion in 2023 compared to $24.833 billion in the year before. FDI outflow stock increased to $262.208 billion last year from $239.880 billion in 2022.

UAE is third largest contributor to Bahrain FDI stocks

The UAE contributed 10% of Bahrain’s FDI stocks in 2023, taking the third place. Bahrain Economic Development Board issued a statement noting that the country has secured a record $6.8 billion FDI inflows last year, as per the latest WIR 2024.

Marking one of the highest ratios across the globe, Bahrain’s FDI stocks relative to GDP stood at 99.7% as of the end of 2023, a figure substantially higher than the global average of 46.9%. The top contributors include Kuwait (36%), Saudi Arabia (23%) and the UAE.

The milestone FDI inflows reflect 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,” said the Chief Executive of Bahrain EDB.

Ramez covers the News and Reports sections on The Gulf Independent. He holds a notable experience spanning more than six years, delivering timely and informative content on noteworthy developments in the vast Gulf region.  Interest:  Ramez is your dependable compass for the freshest, unbiased and elaborate coverage of the Middle East and Gulf regional news and events. He believes in the power of giving each story a unique perspective, subsequently inspiring conversation and promoting transparency.  Education and Experience:  Armed with a promising degree in Journalism and Digital Media from the prestigious American University of Sharjah in the UAE, Ramez has been helping audiences get a better understanding of the region's sensitive issues and massive potential. Email Id: https://twitter.com/RamezSpectnews

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending