In 2023, the UAE ranked second globally after the United States in terms of new foreign direct investment projects. It also claimed the top spot in the Arab world, West Asia, and the Middle East for both inbound and outbound investments. Overall, the UAE is now ranked 11th globally in terms of foreign investment, well on track to meet the government’s 2030 target.

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, highlighted these achievements in a recent X post. He reacted to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2024, which was released on Thursday.

According to the UNCTAD report, which covers more than 200 economies worldwide, global FDI fell by 2 percent to $1.3 trillion in 2023 amidst a global economic slowdown and rising geopolitical tensions. The report noted that the decline would have been 10 percent when excluding a few European conduit economies that registered large swings in investment flows.

FDI flows to developing countries fell by 7% to $867 billion, while tight financing conditions resulted in a 26% drop in international project finance transactions. The report highlighted that crises, protectionist policies, and regional realignments are disrupting the world economy and fragmenting trade networks, regulatory environments, and global supply chains.

Despite these challenges, UNCTAD noted that modest growth in FDI is possible this year, driven by easing financial conditions and investment facilitation efforts in both national policies and international agreements.