UAE tops global ranking of FDI performance in 2023

(MENAFN) In 2023, the United Arab Emirates (UAE) achieved the top spot globally for its performance in attracting foreign direct investment (FDI) relative to the size of its economy, according to the latest Greenfield FDI Performance Index by fDi Intelligence. The UAE's remarkable performance surpasses that of Montenegro and Costa Rica, reflecting a significant increase in the number of foreign companies establishing operations in the Gulf state. This achievement marks the UAE's ascension from its previous position, highlighting its growing appeal as a prime destination for investment.

The fDi Intelligence index evaluated 108 countries, with 84 of them scoring above 1.0, indicating that their share of new global FDI projects exceeded their share of global GDP. In contrast, 24 countries scored below 1.0, suggesting they attracted less investment relative to their economic size. The UAE's notable climb in the rankings is attributed to a record-setting increase of 316 FDI projects in 2023 compared to the previous year. This surge in foreign investment was particularly significant in sectors such as business services, technology, real estate, and industrial equipment.

Costa Rica, which had previously held the top position for three consecutive years, fell to third place in the 2024 index. This change is partly due to Costa Rica's strong GDP growth of 5.1 percent in 2023, coupled with a minor decline in foreign direct investment projects from the historic high achieved in 2022. 

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