The United Arab Emirates, a leader in attracting investment and competitiveness in the Gulf
Data released by the United Nations Conference on Trade and Development (UNCTAD) on the movement of foreign direct investment (FDI) to the United Arab Emirates (UAE) demonstrates the resilience of its market to global fluctuations, thanks to laws and regulations that stimulate the business environment and the flexibility of its financial and banking system that provides innovative opportunities and facilities. The "World Investment 2023" report, published by the UN, found that foreign direct investment declined by 12% globally in contrast to the 60% foreign attraction in the Gulf countries represented by investment to the Emirates.
Foreign capital in the UAE market achieved a significant growth of 10% compared to the previous year, reaching a record $23 billion in 2022. The country also asserted itself as one of the leading players in global market investment, as it invested an estimated $25 billion in capital abroad in 2022, an increase of 10% over the previous year.
The UAE's economic development is one of the most remarkable in the Gulf, with sectors such as finance, trade and tourism. This is mainly due to a range of economic reforms and legislation with an approach that prioritises an investment and business system in line with international practices, and based on flexibility and innovation. Reflecting this is the creation announced last week of a new Federal Ministry of Investment, as well as a Financial Stability Board. According to Reuters, "the ministry's objectives would include stimulating the investment environment in the UAE and making UAE legislation and procedures more competitive to attract global investment".
Diversification of the economy is one of the main objectives to continue the country's economic growth, in line with the 'We Are the Emirates 2031' vision, as the country today is severely dependent on revenues related to oil and gas production. This will be one of the challenges that the Emirates and most Gulf countries will have to face. According to the UNCTAD report, the UAE leads in more than 500 indicators related to e-commerce, logistics or competitiveness. Diversification policies and economic growth will therefore be key objectives in the country's economic development.