AMMAN — In 2022, both
foreign direct investment (FDI)
inflows to Arab countries and global FDI inflows experienced declines.
According to the Arab Investment and
Export Credit Guarantee organization,
known as "Dhaman," FDI inflows to Arab countries reached $54 billion,
a decrease of 3 percent, while global FDI inflows amounted to $1.3 trillion, a
decrease of 12.3 percent.
اضافة اعلان
Dhaman attributed this decline to several factors, including
the ongoing Russian-Ukrainian conflict and its impact on the international
economy,
increasing inflationary pressures, and tightening global financial
conditions, the Jordan News Agency, Petra reported.
Accounting for 4.2 percent of the global investmentsThe organization's annual report reveals that Arab countries
accounted for 4.2 percent of global investment inflows and 6 percent of
investment inflows to developing nations in the past year.
Breaking down the investment inflows received by
Arab countries, the United Arab Emirates (UAE) attracted the highest amount, with
$22.7 billion (42.3 percent). Egypt followed with $11.4 billion (21.2 percent),
Saudi Arabia with $8 billion (14.7 percent), Oman with $3.7 billion (6.9
percent), Morocco with $2.1 billion, Bahrain with $2 billion, and Mauritania
with $1.1 billion.
Furthermore, Dhaman's report highlights that FDI’s balances
flowing into Arab countries increased by 4.4 percent by the end of 2022
compared to 2021, surpassing $1 trillion. This data is based on information
from the
United Nations Conference on Trade and Development (UNCTAD).
Saudi Arabia in the leadAccording to UNCTAD, three Arab countries accounted for over
57 percent of the total cumulative balances entering the Arab region. Saudi
Arabia led the list with balances amounting to $269 billion, representing 25.2
percent of the overall balance. The UAE followed with $194.3 billion (18.2
percent), and Egypt with $149 billion (13.9 percent).
Conversely, FDI outflows from Arab countries experienced a significant
decline of 54 percent in 2022, amounting to $23.3 billion. This downward trend
was driven by negative investment flows, including the liquidation of external
investments worth $25.6 billion in Kuwait, according to UNCTAD data.
By the end of 2022, foreign direct investment balances
issued by Arab countries increased by 10.7 percent, reaching $590 billion. Five
Gulf countries, namely the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain,
contributed 89 percent of the total balances issued in the Arab region.
Regarding cross-border merger and acquisition deals in Arab
countries throughout the year, the sales value of these deals in nine Arab
countries reached $36 billion, accounting for 5.1 percent of the global total
of over $706 billion. Notably, Saudi Arabia, Bahrain, the UAE, and Egypt were
among the countries with significant sales deals.
On the other hand, the value of purchase deals in eight Arab
countries exceeded $28 billion, with Kuwait, the UAE, Saudi Arabia, and Lebanon
contributing more than 96 percent of the total value.
Read more Business
Jordan News
.jpg)
.jpg)
