The UAE’s Global Economic Strength
In a recent statement, Jamal Bin Saif Al-Jarwan, secretary-general of the UAE International Investors Council, highlighted the UAE’s robust position in the global economy. Despite economic fluctuations, the UAE’s overseas investments have remained resilient and continue to grow.
Expanding Investment Portfolio
Al-Jarwan mentioned that the Emirate’s assets abroad, totaling $2.5 trillion as of early 2024, include both government and private investments. The country is actively expanding its investment portfolio to secure valuable projects for future generations.
Global Investment Rankings
According to Al-Jarwan, the UAE holds the top spot in the Arab region and West Asia, and ranks 15th globally in investments. The country is also second globally in investing in new opportunities, although the specific list was not disclosed.
Key Investment Destinations
The US remains a top destination for UAE investments, attracting significant amounts in bonds and direct investments. Other key destinations include Egypt, the UK, India, and several ASEAN countries. The UAE is currently operating in 90 countries and plans to focus on expanding its presence in India, Indonesia, Egypt, Morocco, and Central Asian countries.
Sovereign Wealth Funds and Investments
Al-Jarwan revealed that 72% of the UAE’s overseas investments are attributed to sovereign wealth funds, with prominent entities such as the Abu Dhabi Investment Authority leading the way. Government-owned and quasi-governmental companies account for 18% of investments, while UAE banks, family-owned, and private businesses collectively hold 10% of foreign investments.
Recent Investment Deals
The UAE has been involved in significant investment deals, including the acquisition of UniVar Solutions by Apollo Global Management and Abu Dhabi Investment Authority for $8.2 billion. Additionally, the Canadian Caisse de dépôt et placement du Québec acquired a 22% ownership stake in DP World for $5 billion.
Increased Investment Flows
In 2022, the UAE’s investment flow abroad increased to $24.83 billion, marking a 10% rise compared to 2021. A report from the UN Conference on Trade and Development indicated that the UAE ranked 15th globally in investment flows to other countries in 2022.