UAE attracted 57% of (FDI) Foreign Direct Investment Projects in Arab Countries.
The Arab Investment and Export Credit Guarantee Corporation (GAR) revealed that foreign direct investment (FDI) projects entering the region in 2022 increased by 74%.
With an investment cost of 358% to $200 billion.
These projects centers are in the UAE & Egypt:
UAE attracted 57% of (FDI) projects.
While Egypt attracted 53% share of the investment cost.
The accumulated value in the region over the past 20 years has reached $1.5 trillion through more than 16,000 projects, which have created more than 2 million jobs.
The increase in FDI in the Arab region is a good sign of the improvement of the investment climate in the region.
This increase is due to a number of factors.
Including the political and security stability of the Arab region.
As well as the presence of a large consumer market, and the low cost of production.
Arab governments can continue to promote the investment climate by the following:
-Improving infrastructure.
-Developing the workforce.
-Providing incentives for foreign companies.
Arab companies can also benefit from these new investments by cooperating with foreign companies and transferring technology.
Investment in the Arab world is on the rise.
According to the report, Egypt is the most important destination for foreign projects in the region in terms of investment cost.
With a value of $107 billion and a share of 53%.
Egypt benefited from the huge projects that were implemented in the field of clean and renewable energy during the climate conference in Sharm El-Sheikh.
Qatar came in second place, with a value of $29.8 billion, followed by Morocco with $15.3 billion, Saudi Arabia with $13.2 billion.
While the UAE is in fifth place with $10.8 billion.
The United Arab Emirates also ranked first in terms of the number of projects, with about 923 projects.
In terms of investment cost, the renewable energy sector came in the lead, with a share of 60%.
While in terms of the number of projects, the software sector came in the lead, with a share of 23.4% of the total.
The significant growth in FDI in the region is attributed to a number of factors, including:
The Arab region enjoys relative political stability, making it attractive to foreign investors.
The region also has a diversified economy, making it an attractive market for different types of investments.
Additionally, the Arab region has a population of nearly 400 million, making it a large market for investors.
Mentioning that the Arab region has relatively low production costs,which made it an attractive destination for companies looking to reduce costs.
It is expected that FDI in the Arab world will continue to grow in the coming years. This is due to a number of factors, including:
- Economic reforms being carried out by many Arab countries.
- Population growth in the Arab region.
- The increase in demand for Arab goods and services in global markets.
Foreign direct investment is an important tool for economic development in the Arab world.
It contributes to the creation of new jobs, the transfer of technology, and the improvement of infrastructure.
Also it helps to promote trade between the Arab world and the world.
Abdullah Al-Sabih thanked the various official contacts, investment promotion and export agencies, and related entities in Arab countries.
He thanked them for their cooperation with the institution in completing the report in its current form.
In addition, he thanked the national efforts made to promote Arab countries in order to attract more Arab and foreign investments.
Which will contribute to the institution’s other activities.
It is worth mentioning that (GAR) is a joint Arab entity owned by Arab countries in addition to four Arab financial institutions.
Founded in 1974 and has its headquarters in Kuwait.
S&P rated GAR as A+ along with a stable outlook.
Also, GAR is the first multilateral investment insurance institution in the world.
The institution’s research department prepared the report.
And it analyzes the investment climate in Arab countries based on a set of indicators related to the political, economic, and regulatory environment.
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