Foreign direct investments rose 11% y-o-y to USD 1.4 tn in 2024, though figures dipped 8% when excluding European conduit economies, according to the latest Global Investment Trends Monitor (pdf) released by UN Trade and Development. Greenfield projects fell 8% y-o-y, while their value fell 7% — though still remaining only second to their 2023 peak.

The Middle East attracted USD 70 bn in FDI last year, marking a 13% increase y-o-y, with diversification initiatives and mega-projects in renewable energy, technology, and tourism leading the way, Khaleej Times quotes the report as saying. Saudi Arabia alone recorded USD 30 bn in FDI inflows, spurred by transformative projects like the USD 500 bn Neom development. but the Middle East and GCC stand out as resilient regions, driven by diversification strategies and sustainability-focused investments.

International project finance — mostly critical for infrastructure projects — continued a downward trend with a 26% decline in volume and a decline of about a third in terms of value. Meanwhile, cross-border M&A activity fell 13% y-o-y, though total values increased by 2%.

Expect “moderate growth” for FDI in 2025, though not without downside risks. A toxic mashup of geopolitical tensions, inflation, and shifting trade dynamics could spur uncertainty among investors and spell trouble for global FDI flows. Still, some investors — private equity funds in particular — are expected to use up a lot of their dry powder, especially on tech firms amid the ongoing AI boom.

Prospects look good for the Middle East: The GCC region is expected to see vibrant FDI growth in 2025, fueled by improved financing conditions and an increase in mergers and acquisitions, Khaleej Times quotes the report as saying.

MARKETS THIS MORNING-

Asian markets are firmly in the green this morning, tracking gains on Wall Street after US President Donald Trump called for lower interest rates and oil prices. Meanwhile, Wall Street futures are pointing to a weaker open, with futures across the S&P 500, Dow Jones, and Nasdaq all down in overnight trading.

ADX

9,543

+0.1% (YTD: +1.3%)

DFM

5,249

+0.3% (YTD: +1.74%)

Nasdaq Dubai UAE20

4,356

+0.6% (YTD: +4.6%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.1% o/n

4.4% 1 yr

TASI

12,354

-0.1% (YTD: +2.6%)

EGX30

2,998

+0.1% (YTD: +0.9%)

S&P 500

6,119

+0.5% (YTD: +4.0%)

FTSE 100

8,565

+0.2% (YTD: +4.8%)

Euro Stoxx 50

5,218

+0.2% (YTD: +6.6%)

Brent crude

USD 74.30

-0.4%

Natural gas (Nymex)

USD 3.93

-0.3%

Gold

USD 2,763.40

-0.1%

BTC

USD 103,962.60

0.0% (YTD: +11.3%)

THE CLOSING BELL-

The DFM rose 0.3% yesterday on turnover of AED 660.7 mn. The index is up 1.7% YTD.

In the green: National Cement Company (+8.3%), International Financial Advisors (+8.2%) and Takaful Emarat (+3.3%).

In the red: Orascom Construction (-9.2%), Dubai National Insurance & Reinsurance (-8.2%) and National International Holding Company (-7.9%).

Over on the ADX, the index rose 0.1% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai rose 0.6%.

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