TLDR:
Key Points:
- The UAE and Saudi Arabia have seen significant rises in foreign investment rankings.
- Global venture capital investments have fallen to a near five-year low.
In a recent edition of The Daily Circuit, it was reported that the UAE and Saudi Arabia have made significant gains in attracting foreign investment. According to Kearney’s 2024 Foreign Direct Investment Confidence Index, the UAE ranked eighth globally and Saudi Arabia ranked fourteenth, marking a ten-spot increase for both countries from the previous year. This is seen as a positive sign for Saudi Arabia as it works towards achieving the ambitious goal of attracting $100 billion in foreign investment by 2030 as part of its Vision 2030 economic transformation plans.
However, global venture capital investments have seen a decline, reaching a near five-year low in the first quarter of 2024. High interest rates and a focus on AI technology have contributed to this drop in funding. Despite some rebound in investment in March, overall VC investment in the MENA region is down by 62% for the quarter, according to Wamda.
Additionally, Abu Dhabi has unveiled plans to invest over $10 billion in tourism infrastructure, aiming to increase the number of hotel rooms in the emirate by more than 50% and create 178,000 new jobs. Meanwhile, Saudi Arabia’s Public Investment Fund has entered into a joint venture with a South Korean cybersecurity company, further expanding its investments in the technology sector.
