UAE Investments Abroad Flourish Amid Global Economic Uncertainties: UAEIIC Secretary-General

In a recent discussion with the Emirates News Agency (WAM), Jamal Bin Saif Al Jarwan, Secretary-General of the UAE International Investors Council (UAEIIC), shared insights into the robust performance of UAE investments across the globe. Amidst fluctuating global economic conditions, the UAE has not only maintained but also expanded its investment portfolio, focusing on securing valuable and viable projects for future generations. This strategic approach underscores the nation's commitment to sound economic management and international development cooperation.

Al Jarwan highlighted the UAE's strengthened position within the global economy, noting that the total value of its assets abroad, encompassing both government and private investments, is estimated at a staggering $2.5 trillion as of early 2024. This places the UAE at the forefront in the Arab region and West Asia, ranking 15th globally and second worldwide in venturing into new opportunities.

The United States emerges as the top beneficiary of UAE investments, attracting $65 billion in bonds and $50 billion in direct investments. Egypt is a close second with $65 billion, followed by the United Kingdom and India, each drawing $40 billion in direct investments. Morocco and Europe are also significant investment destinations, with Europe's currency stability making it an increasingly attractive option for future investments.

Al Jarwan revealed that the UAE is currently active in 90 countries, with a keen focus on markets such as India, Indonesia, ASEAN countries, Egypt, Morocco, Central Asian nations, Britain, France, Germany, the United States, Canada, and select Eastern European countries including Serbia, Greece, and Turkey.

The Secretary-General explained that Emirati investments worldwide are predominantly managed by sovereign wealth funds, accounting for 72 percent of total investments. The Abu Dhabi Investment Authority (ADIA) plays a pivotal role alongside Mubadala Investment Company, Investment Corporation of Dubai, Emirates Investment Authority, and ADQ. The UAE boasts seven sovereign wealth funds with assets exceeding two trillion dollars. Government-owned and quasi-governmental companies represent 18 percent of investments, with UAE banks contributing 2.5 percent and family-owned and private companies making up 7.5 percent.

Al Jarwan pointed out several significant investment deals that underscore the UAE's active role in global markets. Among these is a deal between Apollo Global Management and ADIA to acquire UniVar Solutions for US$8.2 billion. Additionally, the Canadian Caisse de dépôt et placement du Québec acquired a 22 percent stake in DP World's operations in Jebel Ali for US$5 billion. The "e&" group's acquisition of a 9.8 percent stake in Vodafone Group for $4.4 billion and ADNOC's purchase of a 24.9 percent stake in OMV AG from Mubadala for $4.1 billion highlight the growing trend of cross-border deals.

From 1991 to 2000, the UAE invested $1.9 billion abroad, which surged to $53.6 billion over the next decade until 2010. By the end of 2022, Emirati investments abroad reached a cumulative balance of $240 billion, marking an increase from $215 billion in 2021.

In terms of annual flows, Al Jarwan noted that UAE's investment flow abroad rose to $24.833 billion in 2022, representing a 10 percent increase from 2021's $22.546 billion. This growth propelled the UAE to the 15th position globally in terms of investment flows to world countries in 2022, improving from its 20th position in 2021 according to a report by the United Nations Conference on Trade and Development (UNCTAD).

The strategic diversification and expansion of its global investment portfolio demonstrate the UAE's proactive approach to fostering economic growth and stability both domestically and internationally.

With inputs from WAM