Abu Dhabi: The United Arab Emirates (UAE) is seeing strong performance from its overseas investments, according to the UAE International Investors Council (UAEIIC). This positive trend comes despite ongoing fluctuations in the global economy.
The UAE is actively expanding its investment portfolio, securing valuable projects for future generations. This demonstrates the country’s sound economic management and commitment to global development and cooperation.
Jamal Bin Saif Al Jarwan, Secretary-General of the UAEIIC, highlighted the UAE’s growing strength in the global economy. The total value of UAE’s assets abroad, both government and private, is estimated at a staggering $2.5 trillion as of early 2024. This ranks the UAE first in the Arab region and West Asia, 15th globally, and second worldwide in pursuing new investment opportunities.
Jamal provided a breakdown of the UAE’s top destinations for investment. The United States leads the way, attracting $65 billion in bonds and $50 billion in direct investments. Egypt follows closely at $65 billion, while the United Kingdom and India each receive $40 billion in direct investments. Morocco sees $30 billion, and Europe is emerging as a promising future destination due to its currency stability.
“We are currently operating in 90 countries,” Jamal Bin Saif Al Jarwan said, outlining the UAE’s geographically diverse investment strategy. He expects India, Indonesia, ASEAN countries, Egypt, Morocco, Central Asian countries, Britain, France, Germany, the United States, Canada, and some Eastern European nations to be key areas of focus moving forward.
The UAE’s overseas investments are primarily driven by sovereign wealth funds, accounting for 72% of the total. The Abu Dhabi Investment Authority (ADIA) plays a leading role, alongside Mubadala Investment Company, Investment Corporation of Dubai, Emirates Investment Authority, and ADQ. Notably, the UAE boasts seven sovereign wealth funds with assets exceeding $2 trillion.
Government-owned and quasi-governmental companies contribute 18% to UAE’s overseas investments, followed by UAE banks at 2.5% and family-owned and private companies at 7.5%.
Jamal Bin Saif Al Jarwan cited several significant recent deals to illustrate the UAE’s growing influence. These include the acquisition of UniVar Solutions by Apollo Global Management and Abu Dhabi Investment Authority for $8.2 billion, and the Caisse de dépôt et placement du Québec’s $5 billion acquisition of a 22% stake in DP World’s Jebel Ali Free Zone, National Industries Park, and Jebel Ali Port.
He also highlighted the e& group’s $4.4 billion acquisition of a 9.8% stake in Vodafone, and the Abu Dhabi National Oil Company’s (ADNOC) $4.1 billion purchase of a 24.9% stake in Austrian oil and gas company OMV AG.
Jamal pointed to the $35 billion Ras El-Khaimah deal as another landmark achievement, showcasing the increasing popularity of cross-border investments.
The UAE’s commitment to overseas investment is evident in its steady growth. The country invested $1.9 billion between 1991 and 2000, followed by $53.6 billion from 2001 to 2010. By the end of 2022, the cumulative balance of Emirati investments abroad had reached $240 billion, up from $215 billion in 2021.
Annual investment flows are also on the rise. According to the United Nations Conference on Trade and Development (UNCTAD), the UAE’s investment flow abroad reached $24.833 billion in 2022, a 10% increase from 2021. The UAE’s global ranking in investment flows also improved, moving from 20th in 2021 to 15th in 2022.
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