UAE FDI inflow climbs over 44% to $19.88bn in 2020

FDI inflows to the UAE grew 44.2 per cent in 2020 to $19.88bn compared to 2019, according to a report by the Ministry of Economy.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai tweeted 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 a 44 per cent growth in FDI flows in 2020, compared to 2019, to reach Dhs73bn. “Good Crisis management is a guaranteed investment,” added Sheikh Mohammed.

Despite the UN’s estimates that global foreign direct investment flows decreased by 42% in 2020 over COVID-19, the UAE witnessed 44% growth in FDI flows in 2020, compared to 2019, to reach AED73 billion. Good Crisis management is a guaranteed investment.

— HH Sheikh Mohammed (@HHShkMohd) May 15, 2021

The cumulative value of foreign direct investments inflows amounted to $174bn, a growth of 12.9 per cent during the reference period.

FDIs were recorded across sectors, primarily oil and gas, considering several investment partnerships struck by the Abu Dhabi National Oil Company (ADNOC) with a number of foreign companies.

The UAE has drawn FDIs for digital economy, 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.

As for FDI outflows, they amounted to $9.2bn and covered various vital economic sectors, including aviation, transportation, mining, renewable energy, real estate, construction, communication, oil and natural gas, traditional and renewable energy, logistics, ports and infrastructure, tourism, leisure, banking, and agriculture.

“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,” said Abdullah bin Touq Al Marri, Cabinet Member and Minister of Economy. He added that the coming period will see more measures to strengthen the investment landscape and grow investor confidence in priority sectors.

Dubai recorded Dhs24.7bn worth of FDI in 2020 across 455 projects, according to data from the Dubai FDI Monitor released by the Dubai Investment Development Agency (Dubai FDI), an agency of Dubai Economy.

Read: Dubai records Dhs24.7bn FDI in 2020

In March, Sheikh Mohammed approved a five-year plan that seeks to increase Dubai’s foreign trade from Dhs1.4 trillion to Dhs2 trillion.

Read also: Sheikh Mohammed restructures Dubai government; approves five-year foreign trade plan

Meanwhile, the emirate of Sharjah in the UAE attracted 24 foreign direct investment (FDI) projects worth $220m in 2020, a Wavteq study noted earlier this year.

Read more: Sharjah attracted $220m FDI in 2020

The UAE’s non-oil GDP is expected to grow by 3.6 per cent by the end of 2021, the Central Bank of the UAE (CBUAE) has estimated.

Read: UAE’s non-oil GDP to grow 3.6% by end 2021