Dubai: The value of UAE’ foreign direct outflows stood at $67 billion (Dh245.9 billion) in 2014, Sultan Al Mansouri, UAE Minister of Economy said at Ministerial Roundtable at the Annual Investment Meeting 2015.
Most of these investments are related to various businesses in energy, real estate, telecommunication, ports development and management, hospitality, infrastructure, banking and financial services as well as industrial sectors, he said. These investments are located in different countries including Sweden, America, Korea, Africa and several countries in the Arab world, he added.
“According to the UAE economic plan, we don’t focus our investment in one basket. We intend to diversify the investments as well as the markets,” Al Mansouri said.
According to the minister, in 2013 UAE’s FDI outflow was valued at 38 per cent of the total world’s outflows.
Clear policy According to the Ministry of Economy the total value of UAE’s FDI outflows in the last 10 years stood at $217 billion.
“The UAE has successful investments abroad due to the clear policy and proper planning as well as government support for the outward investments. This enabled us to venture into foreign markets and compete successfully with their counterparts,” Al Mansouri said.
Not only this, UAE authorities make concrete examinations and researching before into venturing any market.
“We were targeting countries with potential and have a welcoming framework for FDI,” he said.
Most of UAE’s outflows are made in developed countries that already have a national investment law that encourage and protect businesses, and the other host countries also supplementing and enhancing their national regulatory framework with strong international investment agreement.
The UAE is the top Arab country in terms of FDI outflows, accounting for 58 per cent of the total value of FDI outflows in the Arab world. It is 22nd worldwide, according to Abdullah Al Saleh, Undersecretary of the UAE Ministry of Economy, Foreign Trade Sector.
In the last 13 years, the UAE has investments worth $31.1 billion in the Arab world, a 30 per cent share of the total Arab investment in the Arabic countries, he said.
The total value of Arab countries investments reached $53 billion in 2014, according to United Nation Conference on Trade and Development (UNCTAD).
Ekwow Spio-Garbrah, Ghana’s Minister of Trade and Industry, attributed the success of the UAE in investing abroad to the experience the country has in establishing and managing foreign affiliates.
“The UAE successful economic story, enable the country to successfully enter, operate and prosper in foreign markets,” he said.
“It is not like any other developing countries, UAE has the high standard of operating environment which allows the adoption the local business environment in other developed countries,” Garbrah said.
Ghana’s government is working hard to improve investment infrastructure to attract investments from the UAE through tax relaxation, establishing free zones and industrial spots, upgrading the financial services and hospitality, he said.
“Ghana is a potential market for UAE’s outflows and we aim to meet their investment’s standard,” Garbrah said.
