His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has revealed the country’s proactive response to the coronavirus crisis was behind a year-on-year surge in foreign direct investment (FDI).
FDI into the UAE grew by 44.2 percent to $19.88 billion in 2020, despite the economic turmoil caused by the global Covid-19 pandemic.
Despite the UN's estimates that global foreign direct investment flows decreased by 42% in 2020 over COVID-19, the UAE witnessed 44% growth in FDI flows in 2020, compared to 2019, to reach AED73 billion. Good Crisis management is a guaranteed investment.
— HH Sheikh Mohammed (@HHShkMohd) May 15, 2021
In a tweet, Sheikh Mohammed said: “Good crisis management is a guaranteed investment.”
The total value of FDI inflows amounted to $174bn, a growth of 12.9 percent from 2019. In 2019, the UAE ranked 24th globally for attracting FDI and it ranked first in Western Asia. For outgoing FDI, the UAE maintained its position as 19th globally.
Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the growth levels secured by the UAE are reflective of increased investor confidence in the country’s investment ecosystem.
Dr Thani bin Ahmed Al Zeyoudi
The balance of FDI coming into the UAE until the beginning of 2020 is distributed according to continents and their relative importance as follows: Asia, Europe, followed by North America, and then Africa. In terms of countries, the United Kingdom and Northern Ireland comes in first, followed by India, China, and British Virgin Islands. Saudi Arabia comes at fifth, followed by Switzerland, France, Netherlands, the United States of America, and Japan.
FDIs covered all economic platforms, primarily the oil and gas, considering the massive investment partnerships struck by the Abu Dhabi National Oil Company (ADNOC) with a number of foreign companies. The UAE has drawn FDIs for digital economy, including Artificial Intelligence, Internet of Things, blockchain, medical knowhow, augmented and virtual reality (AR and VR), robotics, self-drive automobiles, renewable energy, innovation and AgriTech, among others.
Abdullah bin Touq Al Marri, cabinet member and Minister of Economy, said: “The investment landscape of the UAE has been steadily developing over the past years with the rapid introduction of progressive measures that have earned the nation a coveted position internationally while leading regionally thanks to the directives of our wise leadership to provide a business-friendly environment conducive to facilitating doing business and development that serves the greater good of the country.”
Abdullah bin Touq Al Marri
In terms of FDI outflows, they amounted to $9.2bn and covered various vital economic sectors, including aviation, transportation, mining, renewable energy, real estate, construction, communication, oil and natural gas, traditional and renewable energy, logistics, ports and infrastructure, tourism, leisure, banking, and agriculture sectors.
Al Marri added that the next period will see more measures to strengthen the investment landscape and grow investor confidence in priority sectors.
The UAE currently ranks first in the Arab world and in the region and 15th globally in the Kearney FDI Confidence Index for 2021. It advanced by four ranks compared to 2020, surpassing several major global economies such as Singapore, Australia, Portugal, Denmark, Ireland, Brazil and Finland in the general ranking of the index.
Follow us on
