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The report found that FDI outflows totalled $22.5 billion in 2021, a 19 percent jump over 2020

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The UAE has been ranked as the number one country in the Arab world and the 19^th country globally for its ability to attract foreign direct investment (FDI), according to the World Investment Report 2022.

The report, issued by the United Nations Conference on Trade and Development (UNCTAD), found that the country also ranked 17^th globally for FDI outflows, with outflows totalling $22.5 billion in 2021, a 19 percent increase over 2020.

“The progress, as revealed by this report, is the latest addition to a series of achievements that were recently accomplished by the UAE, under the directives of our wise leadership, starting with its fast recovery from the pandemic’s impact, followed by the achievement of a 3.8 percent GDP growth – the highest in the region,” Abdullah bin Touq Al Marri, Minister of Economy said, WAM reported.

The Minister noted that the report confirmed that the UAE was on the path towards hitting its goals of improving its national economy and global competitiveness.

“The UAE launched the ‘Projects of the 50’ and a number of comprehensive strategic initiatives with the potential to advance the county’s economic growth – both domestically and externally, in line with its vision for long-term, sustainable development,” the minister said.

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“These projects and initiatives add more value to the attractiveness of our national investment environment, while also supporting the outflows of investments from the UAE to other global markets. These include the Investopia summit, which seeks to consolidate the UAE’s position in the world of future investments and the new economy, and attract FDI worth AED550 billion to the country by 2030,” he added.

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said that the UAE’s investment environment continues to grow and develop as a result of the country’s leadership, and reflects the increasing competitiveness of the UAE’s investment environment.

In 2021, the UAE attracted $20.7 billion in FDI, a 4 percent increase from 2020, and accounted for 40 percent of all FDI received by Arab nations.

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The oil, gas and energy sector accounted for 59 percent of FDI, followed by the information, technology and communications sector at 10 percent of total inward FDI; followed by banking, finance, and insurance (7 percent); real estate, management and development activities (7 percent), health care (6 percent), and manufacturing (5 percent).

The country’s manufacturing sector saw the highest growth rate of FDI at 13 percent, with the health sector following with 9 percent, followed by the communications and technology sector at 6 percent, real estate at 4 percent, energy at 3 percent, and services at 2 percent.

The report also ranks the UAE as the number one FDI destination in West Asia, accounting for 37 percent of all investment inflows in the region. It also leads in the MENA region, acquiring $66.6 billion, or 31 percent, or all foreign investment in the region.

UNCTAD also found that global FDI flows have begun to return to pre-pandemic levels. According to the report, global FDI reached $1.6 trillion in 2021, a 64 percent increase, with this figure expected to continue to grow throughout 2022.

The US was the largest recipient of FDI at $367.3 billion, an increase of 143 percent over 2020.