Foreign direct investments into UAE grow by 44.2 per cent in 2020 (Source: orientplanet.com)

Foreign direct investment (FDI) into the United Arab Emirates (UAE) grew by 44.2 per cent in 2020 compared to 2019 and reached to a total of USD 19.88 billion. The positive results come amidst the reeling impact of the COVID-19 pandemic on the volume of global investment and trade and on the world economy in general.  The increase brought the cumulative balance of FDI inflows to about USD 174 billion, achieving a growth of 12.9 per cent compared to the same period in the previous year.

Meanwhile, the UAE’s outward investments flow reached up to USD 9.2 billion in 2020, which showed to be highly performing in regional and international markets. Various vital economic sectors with major strategic investments have revealed sustainable results.

H.E. Abdulla Bin Touq Al Marri, UAE Minister of Economy, said: “The UAE’s economic and investment market has further advanced its ranking globally and has kept its leading position across the region. Thanks to the directives of our wise leaders, the UAE continues to improve its ranks in global indicators for foreign investment inflow and ease of doing business, confirming the success of the government’s strategies towards making the country an attractive investment destination.”

H.E. Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said: “The UAE’s leading position in global indicators to attract foreign direct investment was not a coincidence, but rather the product of a clear vision of our wise leadership to make the UAE the most preferred investment destination. These investments are directed at supporting our development plans focused on innovation, knowledge, technology and the digital economy, in accordance with the National Agenda 2021 and the UAE Centennial 2071.”

The UAE has climbed up by three ranks in attracting FDIs in 2018 and made it to the 24th ranking globally in 2019. It ranked first in the Western Asian region in attracting FDI, gaining 49.4 per cent of the total inflow of foreign investment across West Asia in 2019. The country has maintained its 19th position in the world for outflows of FDI to other countries, according to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2020.