According to a new report released by Lumina Capital Advisers, the FDI into the UAE and Saudi continued to set records in 2022. In 2023, Lumina anticipates Saudi FDI to exceed the UAE’s for the first time since 2012. In addition, Lumina noted that FDI into the UAE and Saudi in 2022 reached record levels, with $40 billion invested, representing a YoY increase of 58 percent. Key MENA projects driving FDI and UK-to-Middle East investment in 2023 will include infrastructure and engineering, tourism and hospitality, and clean/renewable energy, most notably, the mega-projects in the Kingdom.
According to Lumina’s forecast for 2023, the two-way investment will drive record FDI levels. Furthermore, the company highlighted that the dealmaking in 2023 will be resilient despite global headwinds, implying ongoing joint ventures and corporate restructurings.
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The Lumina Cross-Border Insights report revealed that 2023 is predicted to mark another record for cross-border Middle East transactions in light of a resilient regional-led global M&A environment and strong activity in traditional industries like manufacturing, oil & gas services, and industries.
The firm noted that Middle East and North Africa (MENA) and United Kingdom cross-border trade and deal activity surged in 2022, driven by two-way capital flows as multinationals and funds sought access and investments in the region.
The report further highlighted that UK Public Limited Companies (PLC) contributions to the Middle East would increase to 17 percent in 2023, contributing an additional GBP 1.6 billion to UK PLC companies. While aerospace remains the largest sector, growth remained flat year-over-year.
More on Dubai retaining its position as the world’s top FDI destination can be found here
