Gulf Cooperation Council (GCC) countries have attracted a staggering $169.8 billion in foreign direct investment (FDI) over the three years following the COVID-19 pandemic.
During the same period, the six GCC nations exported investments totaling $185.5 billion, according to calculations by “Asharq” based on data from the United Nations Conference on Trade and Development (UNCTAD) released yesterday, Thursday.
UAE Tops FDI Attraction
The UAE led the Gulf states in attracting FDI, securing $74 billion over the three-year period. Outbound investments from the UAE during this time amounted to $69.7 billion, as per the report.
The UAE offers numerous incentives to attract investors, including allowing full foreign ownership of companies in all economic sectors, except for a few strategic sectors that require special approvals.
Furthermore, the UAE offers golden visas to investors and their families, enhancing its appeal as an investment destination.
Saudi Arabia Ranks Second
Saudi Arabia came in second within the Gulf region, drawing nearly $63.5 billion in FDI over the three years, which is about $4.2 billion less than its outbound investments for the same period. The kingdom aims to increase the contribution of FDI to 5.7% of its GDP by 2030. This goal is part of Crown Prince Mohammed bin Salman’s vision to diversify the economy away from its reliance on crude oil exports.
To attract investors and talents, Saudi Arabia introduced the premium residency program earlier this year.
Additionally, the kingdom has previously rolled out incentives for global companies to establish their regional headquarters in Riyadh.
The Gulf states have been aggressively pursuing policies to attract foreign investments as part of their economic diversification plans.
The substantial inflows of FDI and outbound investments underscore the region’s strategic importance and the efforts made to create favorable business environments.
The UAE’s progressive policies, including economic reforms and the introduction of long-term visas, have made it a prime destination for global investors.
Similarly, Saudi Arabia’s Vision 2030 aims to transform the economic landscape by promoting private sector growth and reducing dependency on oil revenues.
As the Gulf states continue to implement these initiatives, they are poised to strengthen their positions as attractive hubs for international investment and economic growth.
