According to the United Nations Conference on Trade and Development (UNCTAD), investment inflows into Saudi Arabia decreased by 59% to USD 7.9 billion, but cross-border M&A sales remained robust.
The USD 16 billion purchase of a 49% share in an Aramco Gas pipeline by an investor group from the USA, China, Hong Kong, China and Saudi Arabia itself, was one of the biggest deals ever recorded.
Investment outflows from the Kingdom decreased from USD 24 billion in 2021 to USD 19 billion in 2022.
The UAE had its greatest level of FDI inflows in 2022, and it is the fourth largest beneficiary of greenfield projects, according to the World Investment Report.
The Tadawul-listed ACWA Power of Saudi Arabia was ranked first among investors in renewable energy in developing countries with 53 projects, followed by Abdul Latif Jameel of Jeddah and Masdar Clean Energy of the United Arab Emirates.
According to the research, the drop in investment inflows to developed economies in 2022 was caused by the uncertainty in the financial markets and the expiration of stimulus packages, but the report also noted that the volatile nature of FDI flows in developed markets continued to have an impact on aggregate values.
Germany was Europe’s greatest investor, with FDI outflows of USD 143 billion, down from USD 165 billion in 2021, followed by the UK with USD 130 billion, up from USD 85 billion.
In the US, where inflows fell by 26%, the halving in cross-border M&A values played a role, the report said.
The US FDI inflows fell to USD 285 billion in 2022, but the country was still the largest recipient, followed by China in second place, which received USD 189 billion. India received USD 49 billion, up from USD 45 billion in 2021.
Global FDI inflows fell 12% to USD 1.3 trillion, while outflows fell by USD 1.73 trillion down to USD 1.5 trillion in 2021.