Arab News, Tue, Mar 26, 2024 | Ramadan 16, 1445
UAE’s abroad investments performing well despite economic headwinds: top official
Emirates:
The UAE has strengthened its position in the global economy, with its overseas
investments proving resilient amid economic fluctuations, said a senior
official.
Jamal Bin Saif Al-Jarwan, secretary-general of the
UAE International Investors Council, stated that the Emirate’s assets abroad,
both government and private, are estimated at $2.5 trillion as of early 2024, as
reported by the state news agency WAM.
He added that the country is continuously
expanding its investment portfolio to secure future generations with valuable
and viable projects.
“It (the UAE) ranked first in the Arab region and
West Asia and 15th globally, and second globally in investing in new
opportunities,” said Al-Jarwan, although he did not specify which list he was
referring to.
In a statement to WAM, Al-Jarwan revealed that the
US holds the top spot, attracting $65 billion in bonds and $50 billion in direct
investments by the UAE.
The US is followed by Egypt at $65 billion, while
direct investments in the UK and India amounted to $40 billion each.
He added that they are currently operating in 90
countries.
He anticipates that their focus will be on India,
Indonesia, and ASEAN countries. Additionally, Egypt, Morocco, and Central Asian
countries were expected to draw their attention.
Moreover, the UK, France, and Germany, along with
the US and Canada, were also on their radar. Lastly, he added, some European
countries, particularly Serbia, Greece, and Turkiye, would be areas of focus.
The senior official revealed that 72 percent of
the UAE’s overseas investments are attributed to the country’s sovereign wealth
funds, led by the Abu Dhabi Investment Authority. Other prominent entities
include Mubadala Investment Co., Investment Corp. of Dubai, Emirates Investment
Authority, and ADQ.
Government-owned and quasi-governmental companies
account for 18 percent of the Emirate’s investments abroad. UAE banks,
family-owned, and private businesses collectively hold 10 percent of foreign
investments. Among these, banks hold 2.5 percent, while family-owned and private
businesses hold 7.5 percent.
He added that the UAE owns seven sovereign wealth
funds, with assets exceeding $2 trillion.
“There are a series of deals that have been
concluded, the most prominent of which was the deal between the American asset
management company Apollo Global Management and Abu Dhabi Investment Authority
to acquire UniVar Solutions, headquartered in the UAE, for $8.2 billion,” he
added.
The official also highlighted the deal in which
the Canadian Caisse de dépôt et placement du Québec acquired 22 percent
ownership of DP World in both the Jebel Ali Free Zone and the National
Industries Park and Jebel Ali Port for $5 billion.
He added that the UAE’s investment flow abroad
increased in 2022, reaching $24.83 billion, marking a 10 percent rise compared
to 2021.
Citing a report issued by the UN Conference on
Trade and Development, Al-Jarwan noted that the UAE ranked 15th globally in
investment flows to other countries in 2022, compared to its position in 2021.