Abu Dhabi, (Business News Report)|| The volume of foreign direct investment flows to the UAE increased from $19.88 billion during 2020, to about $20.7 billion in the past year 2021, according to the report of the United Nations Conference on Trade and Development (UNCTAD).
UNCTAD said that the report’s figures confirm the UAE’s leading position in attracting foreign investments.
According to the report, the UAE topped the Arab countries in the list of the most attractive countries for foreign direct investment for the year 2021.
On the global level, the report dealt with a set of economic indicators. Itconfirmed the recovery of foreign direct investment flows globally to pre-pandemic levels in 2021, to reach $1.58 trillion, an increase of 64% compared to 2020.
The UAE Central Bank expected the UAE’s gross domestic product to jump to 5.4% this year.
A statement by the bank stated that the GDP growth of the non-oil sector increased by 5.3% in 2021.
The statement also indicated that the estimates of the current account surplus in the balance of payments increased from 77.5 billion dirhams ($21.1 billion) in 2020 to 176.2 billion dirhams ($47.9 billion) in 2021 as a result of the increase in oil and non-oil exports in addition to the rise in the surplus in the balance of services.
The report confirmed that the level of economic activity in the UAE began to grow after its success in containing the health and economic repercussions of the pandemic.
The Central Bank stated that these results support its estimates that the economic recovery in the UAE is gaining steady momentum as a result of the strong response to challenges and supportive macroeconomic policies.
The statement also reviewed the bank’s most prominent achievements in 2021, which are represented by several axes, including following up on the implementation of the comprehensive economic support plan, strengthening efforts to combat money laundering and combating the financing of terrorism, and the measures taken to enhance the flexibility of the UAE financial system.
The UAE Central Bank affirmed that in 2022 it will continue to focus on the guarantees of financial stability and consumer protection through effective supervision of licensed financial institutions, strengthening the monetary framework and infrastructure for payments, and investing in the adoption of new digital technologies.
The six Gulf Cooperation Council countries are expected to witness the fastest economic growth they have achieved in years, during 2022, according to a Reuters poll of economists.
The rise in oil prices is one of the main factors driving the economy of the Gulf states. Twenty-five economists in the poll, which was conducted from January 11-19, expected that the six countries would witness faster growth this year than was expected three months ago.