UAE's Global Investment Influence Expands; Morocco Emerges as Key Beneficiary

Tuesday 26 March 2024 - 17:15

In a testament to the UAE's burgeoning global investment influence, Morocco, in North Africa, has emerged as a significant beneficiary, attracting a remarkable $30 billion in investments from the Gulf state. This revelation comes from Jamal Saif Al Jarwan, the esteemed Secretary-General of the UAE International Investors Council, shedding light on the UAE's expanding investment footprint worldwide.

Al Jarwan's remarks illuminate the UAE's overseas investments, both governmental and private, which have surged to an impressive $2.5 trillion as of early 2024. This substantial figure solidifies the UAE's position as a leading global investor, ranking first in the Arab world, West Asia, and an impressive 15th globally for foreign investment. With a presence extending to 90 countries across six continents, the UAE's investment reach is truly global.

While the United States remains the largest recipient of UAE investments, with $65 billion in bonds and $50 billion in direct investment, followed by Egypt with $65 billion, and the UK and India with $40 billion each in direct investment, Morocco's $30 billion share underscores the country's growing economic allure.

The UAE's investments in Morocco encompass a diverse range of sectors, with a joint declaration signed last December between the two nations outlining plans to enhance economic, commercial, investment, and industrial cooperation. Key areas of focus include infrastructure projects such as high-speed rail, airport and port development, as well as sustainable sectors like green hydrogen production, food security cooperation with Morocco's OCP Group, tourism, real estate, and post-earthquake reconstruction.

Morocco's strategic location at the crossroads of Africa, Europe, and the Middle East also positions it as a gateway for the UAE to explore energy infrastructure partnerships with African nations. Projects such as the Africa-Atlantic gas pipeline and the Dakhla Gateway to Africa development are poised to benefit from the enhanced cooperation between the two countries.

The UAE's global investment strategy is divided between sovereign wealth funds (72%), government and semi-government companies (18%), Emirati banks (2.5%), and private/family businesses (7.5%). The Abu Dhabi Investment Authority (ADIA) plays a primary role, alongside Mubadala, the Dubai government's Investment Corporation, and other key funds and companies.

Al Jarwan highlighted the pioneering role of the Abu Dhabi Development Fund in expanding the business of national companies, enabling their entry into new markets, and financing development projects that have benefited many countries globally. Major global deals in the past year include ADIA and Apollo's $8.2 billion acquisition of Univar Solutions, CDPQ's $5 billion investment in Dubai's DP World, and e&'s $4.4 billion acquisition of a 9.8% stake in Vodafone.

The UAE's thriving investment and M&A landscape reflect the strong trust placed in the country by global partners. The UAE ranked first in MENA for both inbound and outbound M&A deals by value in 2022, with the private sector leading the charge. Since 1991, the UAE's outward foreign investments have surged from $1.9 billion in the 1990s to $240 billion by the end of 2022.

"The UAE has comprehensive international, regional, and strategic partnerships and strong ties with many brotherly and friendly countries," said Al Jarwan. "UAE investments, currently present in 90 countries worldwide, contribute to supporting the country's positive image either directly or indirectly."

He emphasized the developmental nature of most Emirati investments abroad, aimed at bolstering the economies of partner nations, improving living conditions, and enhancing the UAE's global reputation. These investments have significantly eased crises, created jobs for youth, and improved living standards for millions worldwide.

The signing of the joint declaration last December, titled "Towards an Innovative, Renewed, and Deep-rooted Partnership," marks a new chapter in the Morocco-UAE economic relationship. By leveraging their complementary strengths and shared vision for growth and prosperity, the two nations are poised to unlock new opportunities that could create a lasting impact on the global stage.