The United Arab Emirates (UAE) is writing a new chapter in the history of investment in the Arab region. The country has been able to stay within constant growth margins thanks to the diversification of its economy and great opportunities with flexible regulations and the creation of a business environment supported by a low tax system and stable exchange rates.
For years, the UAE has driven economic growth thanks to tourism, investment in infrastructure making it the favourite Arab destination for large multinationals wishing to invest in the Arab world.
This growth is already reaching its fifth decade of development and innovation since the country became independent from the United Kingdom in 1970. But it was not until the beginning of oil exports that the Arab state increased its presence and made a name for itself on the international scene.
Once the 2023 balance sheet has been completed, data from the Arab Investment Guarantee and Export Credits Corporation (DAMAN) and the United Nations Conference on Trade and Development (UNCTAD) indicate that the United Arab Emirates occupies the first place in the Arab world in terms of countries where the most is invested and the 18th globally. With annual results of 3.5% GDP growth and 1.8% GDP, the current position of the Emirates was a matter of time.
The index of the Kuwait-based DAMAN institution analysed more than 223 parameters from 158 countries, of which 21 are Arab. The report reads: “According to the data of the 39th annual report on the investment climate in the Arab region for the year 2024, the UAE continued to lead the countries as the largest recipient of foreign direct investment projects during 2023”.
With more than 1,216 projects and a capital flow of more than 30,700 million dollars, investment in the country is equivalent to 60% of the total projects carried out in Arab countries and 45.5% of total foreign investment. The remaining 40% is divided mainly between Saudi Arabia, Morocco, Qatar and Kuwait.
Half of the Arab world’s foreign investment contracts are signed in the city of Dubai alone
Not only Dubai is the great winner of the Emirates, other enclaves such as Abu Dhabi, Sharjah and Ras Al Khaimah received great investment offers. Some of the examples are the expansions of the Yas Marina Circuit in Abu Dhabi, the improvement of the facilities and infrastructures around the Jumeirah Beach or the Sharjah Museum of Islamic Civilization in Sharjah.
The UAE is not only a leader in foreign investment, but also the great winners of intra-Arab investments occupying 66% of these. The value of intra-Arab investment reached 43,700 million dollars.
The report issued by DAMAN reaffirms the Emirati success and emphasizes that more emphasis should be placed on the monitoring of investment indicators using Artificial Intelligence (AI) to improve and rise in the world ranking. Specifically, the use of AI will be used to study performance losses in certain months of the year, where investments are lower.
In terms of employment, DAMAN placed the UAE in third place as job creators with almost 45,000 new jobs and sixth in terms of investment of this with an estimated value of 14,100 million dollars in labour investment through the payment of training and accommodation.
The United Arab Emirates has invested 12,600 million dollars more in the Arab world than the foreign investment they have received in them.
The United Arab Emirates, the second Arab economic power only behind Saudi Arabia, has undergone a momentous economic transition. Tourism, transport, technology… all sectors have increased both in prestige and in infrastructure.
In recent years, especially thanks to the Emirates of Abu Dhabi and Dubai, the country has hosted the headquarters of multinational giants that are constantly expanding thanks to the stability it offers them. The growth seems to have no expiration date, so it is not surprising that the United Arab Emirates remains leaders of the Arab world and climbs positions in the coming years.