UAE leads Arab na­tions in FDI in 2016 — study

The UAE also topped Arab coun­tries in terms of new for­eign in­vest­ment projects from 2003 to 2016

Gulf News - - Region -

The United Arab Emi­rates has been ranked the most at­trac­tive desti­na­tion for for­eign di­rect in­vest­ment (FDI), among Arab coun­tries in 2016, ac­cord­ing to a study is­sued by the Min­istry of Econ­omy.

The study shows that FDI ac­counts for 29 per cent, or $9 bil­lion, of the to­tal in­vest­ment. The UAE also topped the Arab coun­tries in terms of new for­eign in­vest­ment projects in the pe­riod from 2003 to 2016, with 4,492 out of the to­tal 12,192 new projects, the study showed.

The study mon­i­tored the move­ment of FDI in the Arab World in 2016, in light of the in­vest­ment in­flows, and Arab and global ac­cu­mu­la­tive out­bound and in­bound FDI.

Eco­nomic strengths

“The UAE has a com­pet­i­tive econ­omy with 25 per cent of the in­ter­na­tional com­pa­nies hav­ing re­gional oper­a­tions in the UAE, thanks to the UAE’s eco­nomic strengths, such as po­lit­i­cal and se­cu­rity sta­bil­ity, strate­gic ge­o­graph­i­cal lo­ca­tion be­tween the west and east, ad­vanced tech­no­log­i­cal and reg­u­la­tory in­fra­struc­ture, easy ac­cess to smart gov­ern­ment ser­vices, highly trans­par­ent bank­ing and fi­nan­cial ser­vices,” it noted.

The ac­cu­mu­la­tive FDI in the UAE rose 8.2 per cent to $117.9 bil­lion in 2016, from $109 bil­lion in 2015, mainly boosted by the in­creas­ing in­vest­ment in the man­u­fac­tur­ing and heavy in­dus­tries, in­clud­ing alu­minium and petro­chem­i­cals, while FDI in­flows con­sti­tuted 16.9 per cent by the end of 2016 of the to­tal FDI in West Asia, and 26.5 per cent in the Gulf Co­op­er­a­tion Coun­cil.

The UAE came se­cond after Turkey in West Asia in terms of the most at­trac­tive desti­na­tion for FDI, ac­count­ing for 32.3 per cent of the to­tal in­vest­ment in­flows of $27.8 bil­lion, it added.

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