Dubai April 7 2022: The Foreign Direct Investment (FDI) inflows into the UAE recorded a 3.9 percent growth in 2021 compared to 2020 to reach nearly AED 76 billion (US$20.7 billion).
As a result, the total FDI balance in the country increased to reach nearly AED 630 billion (US$171.6 billion) by the end of 2021, highlighting a 13.7 percent growth over 2020. Over the past ten years, FDI inflows into the country have grown by 116 percent, while the total balance of those investments during the same period grew by 113 percent.
Abdullah bin Touq Al Marri, Minister of Economy, said that this distinguished result is the country's latest achievement under the UAE leadership's wise vision and directives, which are based on the principles of proactivity and future foresight.
He noted that it has proven the strength and flexibility of the UAE's economy and the attractiveness of its business and investment environment once again, highlighting the advantages it offers to the global investment community.
"These integrated and pioneering competitive advantages and incentives consolidate the UAE's position as an economic and commercial capital both regionally and globally, making it a preferred and attractive destination for FDI and pioneering projects from various international markets," he explained.
Bin Touq added, "This result is a natural outcome of the pioneering measures and initiatives implemented by the UAE in the past phase to develop its economic sectors and significantly enhance its investment climate. These policies align with a new economic model that is more flexible and sustainable, with more openness to global markets, and are also in line with future economic trends and emerging technologies.
"The most prominent among them is the granting of 100 percent free and full foreign ownership of projects and investments in all economic sectors, with the exception of a limited number of activities with a strategic impact. Another notable initiative is the launch of the 'Projects of the 50', which include several strategic and qualitative initiatives to attract pioneering projects and talents.
"We will continue our efforts in this direction during the next stage, following the UAE's recent hosting of the Investopia summit that strengthened its position as a destination for future investments. It has set forth the goal to attract AED 550 billion worth foreign investments to the country by 2030, to eventually reach AED 1 trillion by 2051."
The foreign investments received by the UAE are spread across all sectors and vital economic activities, such as traditional and renewable energy, oil and natural gas, financial sector, insurance activities, real estate, health, industry and agriculture. Various new economic sectors such as digital economy, technology, innovation, artificial intelligence, Internet of things and blockchain, innovative medical technologies, high-speed transportation, virtual and augmented reality, robotics and self-driving cars also attracted considerable FDI.
Meanwhile, the UAE's outward FDI flows reached nearly AED 82.6 billion (AED 22.5 billion) in 2021, with an annual growth of 19.1 percent. They grew by 789 percent over the past ten years, which led to an increase in the UAE's investments in foreign markets to reach nearly AED 830.5 billion (US$226.3 billion) by the end of 2021, with a growth of 11.1 percent compared to the end of 2020.
The UAE's investments have proven highly efficient in regional and international markets, and in various vital economic sectors, where they serve as qualitative and sustainable strategic investments. The UAE companies have been able to enhance the competitiveness of the national economy in a number of advanced global industries and services such as aviat…