FDI flows were strong in 2022, but IPAs face new challenges when it comes to attracting investors.
Greenfield foreign direct investment (FDI) has recovered since its near total collapse in 2020, and the past two years have been marked by a prolonged rebound. In the Middle East and North Africa, the growth shown has been significant, and the number of projects in the region soared from 2021 to 2022.
Globally, greenfield FDI grew by 14% in 2022 and the Middle East and Africa (MEA) have been two of the world’s fastest-growing regions for FDI since 2019, according to GlobalData’s new report, ‘Greenfield foreign direct investment into Middle East and Africa 2022’.
Investment promotion agencies (IPAs) in the MEA region have worked with governments to create investor-friendly policies and regulation, and helped attract investment across a number of sectors including renewable energy, software and IT services.
International investment promotion specialist David Parker said: “Historically, investment promotion has been a face-to-face job.” While Covid-19 changed that, with IPAs suddenly having to adapt and focus on building interactive websites and talking to investors from afar, the post-Covid world means they must again adapt.