In line with Al-Shall Financial Report, based mostly on the UN Convention on Commerce and Improvement (UNCTAD) findings launched on June 19, international direct funding (FDI) exercise within the GCC witnessed notable progress in each inward and outward flows throughout 2024.
Whole inward FDI to the GCC rose from $67.1 billion in 2023 to $73.6 billion in 2024, marking a rise of 9.7 %. Outward flows additionally grew from $51.9 billion to $58.6 billion, a 12.9 % enhance, reflecting a greater efficiency by the GCC area in distinction to the worldwide decline in FDI, experiences Al-Rai day by day.
The UAE accounted for the biggest share of inward FDI, receiving round $45.6 billion, or 62 % of whole inflows to the area. Saudi Arabia adopted with $15.7 billion, making up 21.4 % of the overall, however this determine represented a 31 % drop in comparison with the earlier 12 months.
Oman ranked third, attracting $8.7 billion in FDI, up 83 % from 2023, and capturing about 11.8 % of whole inflows. Bahrain got here fourth with $2.5 billion, a 65.7 % decline, whereas Kuwait ranked fifth, receiving solely $614.1 million—a drop of almost 71 %—representing a marginal share of whole GCC inflows. Qatar, although final with $460.2 million, improved from damaging inflows in 2023.
On the outward funding aspect, the UAE led once more with $23.4 billion in outflows, and retained a robust internet optimistic stream of $22.2 billion. Saudi Arabia was subsequent with $22 billion in outflows, however recorded a internet deficit of $6.3 billion.
Kuwait had the third-largest outflows at $10.3 billion and the very best internet deficit of $9.7 billion. Qatar adopted with $1.6 billion in outflows and a $1.1 billion deficit. Oman’s outflows have been $1 billion, with a notable surplus of $7.6 billion. Bahrain had the bottom outflows at $275 million however posted a surplus of $2.2 billion.
Kuwait’s figures mirror a troubling actuality: the nation stays unattractive to inbound FDI whereas additionally seeing the very best internet outflows, suggesting capital flight and a weak funding local weather. Al-Shall emphasised that these outcomes spotlight the fragility of Kuwait’s enterprise surroundings and its restricted attraction to international buyers.
Globally, the UNCTAD’s World Funding Report 2025 estimates a decline of 11 % in international FDI for 2024, following an analogous drop in 2023.
This development shouldn’t be common, nonetheless, with variations throughout areas. Superior economies recorded a sharper decline of round 22 %, with Europe struggling essentially the most extreme contraction at 58 %.
Asia skilled a modest drop of three % in FDI, however Southeast Asia defied the development with a ten % rise, reaching $225.3 billion. Africa noticed a considerable 75 % enhance in FDI, pushed largely by one megaproject in Egypt, which alone noticed inflows rise from $9.8 billion to $46.6 billion. In the meantime, Latin America skilled a 12 % decline.
North America stood out with a sturdy rise in FDI. The US attracted $278.8 billion, up from $233.1 billion in 2023. Canada’s FDI grew from $46.5 billion to $64.1 billion, whereas Mexico posted a slight enhance to $36.9 billion.
UNCTAD attributes the worldwide decline in FDI to a variety of challenges, together with geopolitical instability, commerce coverage tensions, and rising competitors in key industries.
Al-Shall famous that these pressures have intensified by mid-2025, significantly in gentle of escalating commerce conflicts and navy tensions close to important oil and gasoline reserves. These developments, it warned, might lead to a 3rd consecutive 12 months of declining international FDI flows.