The United Nations Conference on Trade and Development (UNCTAD) revealed in a report on Wednesday that foreign direct investment (FDI) flows to the UAE increased by 10% in 2022 compared to the previous year, reaching a record figure of $23 billion.
The "World Investment Report 2023" noted that global foreign direct investment decreased by 12%. It added that the UAE, the second-largest economy in the Arab world, attracted about 60% of the total foreign direct investment in Gulf Cooperation Council (GCC) countries, which more than doubled to $37 billion.
Foreign direct investment in Saudi Arabia, the region's largest economy and the world's largest exporter of crude oil, fell by nearly 60% to $7.9 billion in 2022.
All Gulf countries, which rely heavily on oil and gas revenues, are executing plans to diversify their economies and sources of income and attract foreign investments. The UAE is among the most advanced countries in this process, having developed sectors such as financial services, trade, and tourism, in addition to implementing social reforms and business sector reforms.
Earlier this week, the UAE announced the establishment of a new federal Ministry of Investment to develop a strategy for domestic and foreign investment, amid increasing economic competition from neighboring countries.
According to the UNCTAD report, the UAE attracted the fourth largest number of new projects globally last year. Moreover, the UAE also serves as a source of investment, injecting $25 billion in investments abroad in 2022, representing a 10% increase from the previous year.