The United Arab Emirates has solidified its position as a leading regional and global player in foreign direct investment, according to Jamal Bin Saif Al Jarwan, Secretary-General of the UAE International Investors Council (UAEIIC).
He estimates the total value of Emirati investments abroad, encompassing both government and private sectors, to have reached a staggering $2.5 trillion by the beginning of 2024.
The UAE's robust financial presence positions it as a formidable economic force poised for further growth. Emphasizing emerging markets and strategic partnerships, the UAE actively engages in international economic activities, evident in landmark deals like the $35 billion investment agreement with Egypt for Ras Al Hekma development, marking Egypt's largest direct investment. Despite global economic hurdles, this project signifies confidence and reshapes regional investments. Anticipated total UAE investment in Egypt to reach $65 billion post-project completion underscores transformative opportunities, led by Abu Dhabi's ADQ investment and holding company, promising substantial benefits for Egypt's economy.
The UAE-Egypt deal positions Egypt as a prime destination for foreign direct investment, likely elevating its status in the upcoming UNCTAD report. Immediate effects include a strengthened Egyptian pound, stabilized supply chains, and normalized prices, with swift IMF negotiations. This unexpected development may improve Egypt's credit rating and prompt positive investor reassessment. The deal deepens strategic and economic ties between the UAE and Egypt, aiming to enhance investment, infrastructure, and smart city development. The Ras Al Hekma project, spanning 170 million square meters, is set to become one of the largest new city developments, attracting over $150 billion in investments, fostering mutual prosperity and technical cooperation.
Al Jarwan sees a promising future for UAE investments in Egypt, noting positive evolution in their economic relations. He stresses the need for specificity and deep understanding of Egypt's economy for successful investments, citing factors that encourage foreign currency injection into emerging markets. With around 2,000 Emirati companies across sectors like telecommunications, real estate, and oil and gas, the UAE is a leading investor in Egypt.
Al Jarwan underscores global strategic interest in UAE investments due to confidence in its leadership and professional investors. Expecting continued interest, he highlights potential investment destinations like India, Indonesia, ASEAN nations, Morocco, and certain European countries, including Turkiye.
News Source: Emirates News Agency
