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Investment inflows into Saudi Arabia fell by 59% to $7.9 billion, but cross-border M&A sales remained high, the United Nations Conference on Trade and Development (UNCTAD) said in its World Investment Report.
One of the largest deals recorded was the $16 billion acquisition of a 49% stake in an Aramco Gas pipeline by an investor group from the USA, China, Saudi Arabia itself, Hong Kong and China.
The kingdom recorded investment outflows at $19 billion in 2022, down from $24 billion in 2021.
According to the World Investment Report, the UAE is the fourth largest recipient of greenfield projects and received its highest level of FDI inflows in 2022.
Top investor in green projects
Saudi Arabia’s Tadawul-listed ACWA Power was named as the developing nations’ top investor in renewable power by number of projects, with 53 projects, followed by Jeddah-based Abdul Latif Jameel and the UAE’s Masdar Clean Energy in third place.
The report said the 2022 decline in developed economies investment inflows reflected the uncertainty in financial markets and the winding up of stimulus packages, but the volatile nature of FDI flows in developed markets also continued to affect aggregate values.
Germany was Europe’s largest investor, with FDI outflows of $143 billion, down from $165 billion, followed by the UK with $130 billion, up from $85 billion in 2021.
Sweden was the continent’s largest recipient of FDI inflows with $46 billion, up from $21 billion, with France in second place, receiving $36 billion, up from $31 billion in 2021.
In the US, where inflows fell by 26%, the halving of cross-border M&A values played a role, the report said.
The USA’s FDI inflows fell to $285 billion in 2022, but it was still the largest recipient, with China in second place, which received $189 billion. India received $49 billion, up from $45 billion in 2021.
Global FDI inflows declined by 12% to $1.3 trillion with outflows falling to $1.5 trillion from $1.73 trillion in 2021. Meanwhile inflows to developed economies fell to $378 billion from $597 billion, and outflows $1.030 trillion, down from $1.244 trillion.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
