Gulf countries witnesses volatile waves of FDI inflows, outflows
Date
6/23/2024 7:38:42 AM
(MENAFN) In the wake of the COVID-19 pandemic, Gulf countries have experienced robust inflows of foreign direct investment (FDI), with total investments amounting to USD169.8 billion over the past three years. Concurrently, these countries have also engaged in significant outward investments, totaling USD185.5 billion during the same period. These figures were calculated based on data from the United Nations Conference on Trade and Development (UNCTAD), as reported by Al-Sharq last Thursday.
Leading the pack in attracting FDI is the United Arab Emirates (UAE), which secured investments worth USD74 billion during the aforementioned period. Simultaneously, outward investments from the UAE amounted to USD69.7 billion. The UAE's appeal to investors lies in its range of incentives, including the allowance for full ownership of companies across various economic sectors, except for select strategic sectors. Additionally, the country offers golden residency to investors and their families, further enhancing its attractiveness as an investment destination.
Following closely behind is Saudi Arabia, which attracted FDI amounting to USD63.5 billion over the past three years, with outgoing investments totaling USD4.2 billion less. Under the ambitious Vision 2030 initiative spearheaded by Crown Prince Mohammed bin Salman, Saudi Arabia aims to increase the contribution of FDI to its gross domestic product (GDP) to 5.7 percent by 2030. The kingdom has also introduced initiatives such as distinguished residency for investors and talents, along with incentives for international companies establishing Riyadh as their regional headquarters.
Oman secured its place in third position, having attracted foreign investments exceeding USD19 billion, while engaging in outward investments of approximately USD2.3 billion. In a bid to further bolster its investment environment, Oman announced a new program in mid-2021 granting long-term residency to foreign investors. This initiative is aimed at diversifying investments across sectors including industry, tourism, mining, logistics, agriculture, education, health, information technology, and renewable energy.
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