The UAE has emerged as the second largest Arab recipient of foreign direct capital (FDI) after Saudi Arabia, attracting more than $nine billion in 2012.
Official Arab data showed FDI flow into the UAE surged by around 25 per cent while FDI in Saudi Arabia and other Arab League members declined last year.
From around $7.6 billion in 2011, FDI flow into the UAE swelled to about $9.6 billion in 2012, showed the figures by the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC).
FDI to Saudi Arabia stood at around $12.1 billion in 2012, down from $16.3 billion in 2011. Lebanon emerged as the third largest recipient of FDI, which stood at nearly $3.6 billion in 2012 compared with $3.4 billion in 2011.
The report showed total FDI into the Arab world grew by about 9.8 per cent to $47.1 billion last year from $42.9 billion in 2011 despite a decline in worldwide investment and political developments in the region.
Algeria emerged as the fourth largest Arab recipient of foreign capital, with its FDI swelling by around 13 per cent to $2.9 billion from $2.57 billion.
Morocco came fifth with around $2.88 billion in 2012 compared with $2.56 billion in 2011. Egypt recorded a negative FDI flow of about $483 million in 2011 it rebounded into an inflow of $2.79 billion in 2012.