UAE top Arab capital exporter with $49bn
The UAE has pumped in more than $49 billion (Dh179.8bn) in direct investment into global markets over the past four years to emerge as the largest capital exporter in the Arab region, according to official figures.
Foreign direct investment (FDI) by the UAE hit an all-time high in 2008 despite the global financial turbulence to become one of a handful of Arab nations to record growth in outgoing FDI last year, according to figures issued by Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAGIC).
During 2005-2008, the cumulative FDI pumped by the UAE across the border totalled $49bn, the largest capital outflow in the Arab World. FDI by the UAE has steadily increased over the past few years to maintain its position as the largest Arab capital exporter and the top regional investor in global mergers and acquisition (M&A) operations.
In 2008, the UAE accounted for about 40 per cent of the total Arab FDI outflow, while it controlled more than a third of the outflow during 2005-2008. A breakdown showed the FDI outflow by the UAE surged from around $3.7bn in 2005 to $10.8bn in 2006 and $14.5bn in 2007 before climbing to a record high of $16.8bn in 2008.
The report by the Arab League's main financial institution did not give details of the country's FDI operations but many official and private UAE companies have been locked in a massive overseas investment drive over the past few years.
They include Mubadala Development Company, the Abu Dhabi Energy Company Taqa, Aabar Investment and the International Petroleum Investment Company.
The report, citing figures by the United Nations Conference on Trade and Development (Unctad) showed Kuwait was the second-largest Arab capital exporter, with a total FDI of $32.05bn during 2005-2008.
FDI was estimated at $15.5bn in Saudi Arabia, $9.9bn in Libya, $8.14bn in Qatar and $5.4bn in Bahrain.
The UAE also emerged as the top M&A buyer with a total value of around $43.1bn during 2006-2008.
It was followed by Saudi Arabia, with $19.5bn.
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