Trade Horizons’ Market Entry Blog

In the 21st century world the economic landscape is continually evolving. One of the most significant trends of recent years has been the surge in Foreign Direct Investment (FDI) from the Gulf Cooperation Council (GCC) countries into Africa. This article explores this burgeoning economic relationship, shedding light on the motivations behind the investments, the sectors targeted, and the implications for both the GCC and Africa.

According to the UNCTAD's 2022 World Investment Report, FDI inflows to Pakistan stood at USD 2.1 billion in 2021, remaining stable compared to the previous year. The total stock of FDI reached USD 32.9 billion, equivalent to approximately 9.5% of Pakistan's GDP. The financial sector receives the highest FDI, followed by the chemicals industry and construction. China remains the dominant investor, but recently, the United Kingdom, South Korea, and Japan have increased their investments. In FY 2022, Pakistan attracted FDI amounting to USD 1.86 billion, with significant inflows in energy, financial services, and oil and gas sectors. Chinese investment, despite a 29% decline due to slowdown in China-Pakistan Economic Corridor (CPEC) projects, remained consistent. The U.S. and Switzerland were also notable investors. Pakistan's attractiveness for investment is gradually improving, although challenges such as security concerns, electricity shortages, and a cumbersome investment climate persist. It ranks lower than neighbouring India but on par with Sri Lanka and Bangladesh in terms of investment potential. Foreign investors (except Indian and Israeli citizens/businesses) can establish, own, operate, and dispose of interests in most types of businesses in Pakistan, subject to certain restrictions.

As the global economy interlaces nations and markets, two states emerge as beacons of prosperity: Texas and Florida. These sun-kissed lands, each with its unique allure, beckon investors, entrepreneurs, and visionaries. In this article, we delve into their success stories, dissecting the strategies that have propelled them to the forefront of FDI. From the sprawling plains of Texas to the vibrant shores of Florida, let's embark on a journey where trade meets tenacity, and borders blur into opportunity.

According to a report by the United Nations Conference on Trade and Development (UNCTAD), greenfield FDI announcements in the UAE rose by 28% in Q3 2023, marking the second-highest number recorded in the world after the US. The report also stated that the UAE has seen significant growth in the information and communications technology (ICT) sector, with ICT spending expected to reach $6.27bn by 2024. The UAE government has been working to diversify its economy away from hydrocarbons and stimulate growth in the private sector. The UAE has been attracting significant amounts of FDI in recent years, with FDI inflows reaching $22.74bn in 2022, a 10% increase from 2021. The country provides several incentives to foreign investors, such as the opportunity for investors of different nationalities to establish and own companies fully, and expedited licensing and incorporation procedures for cutting-edge technology companies looking to establish their presence in the UAE. The legal forms of FDI projects in the UAE include public joint stock companies, private joint stock companies, limited liability companies, limited partnership companies, and partnership companies.