As per the report stated by Government of UAE (Ministry of Economy), the overall FDI inflows to UAE has amassed a staggering $19.88Bn, a surge of 44.2% during the preceding year 2020.
The Vice President and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum stated in his latest tweet as done on Saturday, that, “Despite the UN’s estimates that global foreign direct investment flows decreased by 42 per cent in 2020 over Covid-19, the UAE witnessed 44 per cent growth in FDI flows in 2020, compared to 2019, to reach Dh73bn.” He also added out further that, “Good crisis management is a guaranteed investment.”
The overall collective figures as achieved in the overall net worth of the FDI inflows accounted in to $174Bn, an overall upsurge of 12.9 percent within the stated timeframe.
The huge credit for the nation’s momentous inflows regarding the FDI the preceding year is all attributed to ADNOC’s as well as sectors like Oil and Gas, wherein Oil and Gas major ADNOC was seen monetizing few of its non-core assets. As well as there were numerous deals struck up by the Abu Dhabi National Oil Company (ADNOC) alongside numerous other foreign firms, despite the Pandemic issue and Oil rate decline being the primary concern.
The UAE has obtained out the FDIs for a global digital economy, that also was including Artificial Intelligence, Internet of Things, Blockchain, Medical Knowhow, Augmented and Virtual Reality (AR and VR), Robotics, Self-drive automobiles, Renewable energy, Innovation, and Agritech, among others.
The preceding year, Adnoc assisted to fascinate Dh62bn ($16.8bn) in foreign direct investment to the UAE, primarily through innumerable multibillion-dollar transactions contracted in the midstream and infrastructure segments.
Over the past four years, the state-owned establishment aided in powering out a Dh237bn in FDI flows to the UAE.
As for FDI outflows, they accounted out to $9.2bn and enfolded numerous core economic sectors, including
- Renewable energy
- Real estate
- Construction and communication
- Oil and natural gas
- Conventional and Renewable energy
- Logistics and Supply Chain Management
- Ports and infrastructure
- Tourism and Leisure
- Banking and agriculture.
In July, a group of the global principal infrastructure and sovereign wealth funds signed an agreement costing a staggering $20.7bn to invest in Abu Dhabi’s natural gas pipeline infrastructure. The transaction, the major single global energy infrastructure deals the preceding year and the Middle East’s biggest, will unearth $10.1bn of foreign investment into the UAE.
As per the government data (Dubai FDI Monitor released by the Dubai Investment Development Agency (Dubai FDI), an agency of Dubai Economy) published in April, Dubai, the UAE’s financial, transportation and trade hub, engrossed Dh24.7bn ($6.7bn) in FDI the preceding year, via the 455 projects.
It also added out that, “The inbound FDI formed an appraised 18,325 latest employment measures in the emirate the preceding year. However, it wasn’t been able to offer comparable figures for the year 2019.”
The large inflows to the UAE were derived amidst the nation’s tactics to double the size of its economy over the approaching decade. The Ministry of Economy’s intents to channelize in their efforts to develop the size of the economy to spread Dh3 trillion over the forthcoming 10 years.
The UAE’s economy is set to nurture by 2.5 percent this year, and its non-oil economy by 3.6 percent, according to estimates from the Central Bank of the UAE. The economy is anticipated to progress by 3.5 percent in 2022 and non-oil growth will upsurge to 3.9 percent.
Cabinet Member and Minister of Economy, Abdullah bin Touq Al Marri, stated that, “The investment landscape of the UAE has been steadily developing over the past years with the rapid introduction of progressive measures that have earned the nation a coveted position internationally while leading regionally. He added that the coming period will see more measures to strengthen the investment landscape and grow investor confidence in priority sectors.”
The national oil giant had also unlocked up partnership prospects across its midstream and real estate sectors to permit foreign private equity and pension funds to pool in capital.
Meanwhile, the emirate of Sharjah in the UAE it was able to fascinate 24 foreign direct investment (FDI) developmental aspects valued at a whopping $220Mn in 2020, a Wavteq study noted earlier this year. In March, Sheikh Mohammed approved a five-year plan that pursues to upsurge Dubai’s foreign trade from Dhs1.4 trillion to Dhs2 trillion.