UNCTAD published its 2023 World Investment Report in July, which provides an overview of foreign direct investment (FDI) and in particular in the Middle East.
In a context where global foreign direct investment fell by 12% in 2022, the dynamics in the Middle East are disparate. Although several countries in the region had experienced a drop in their inward FDI in 2021, FDI flows started to rise again in 2022 in Israel (+29% compared to 2021, to 27.8 billion USD), Egypt (+123%, to 11.4 billion USD), Iran (+5%, to 1.5 billion USD) and Jordan (+83%, to 1.1 billion USD).
Divestments accounted for in Iraq are also gradually being reduced. On the other hand, inward FDI flows continue to decline in Lebanon (458 M USD, i.e. -24% compared to 2021 and -76% compared to 2019) and in Palestine (233 M USD, i.e. -34% compared to 2021).
In 2022, the total stock of FDI represented USD 235 billion (45% of GDP) in Israel; USD 149 billion (31% of GDP) in Egypt; USD 71 billion (324% of GDP – particularly given the drastic drop in GDP) in Lebanon; USD 62 billion (17.5% of GDP) in Iran; USD 38 billion (79% of GDP) in Jordan and USD 3.1 billion (17%) in the Palestinian Territories.
Source: French Embassy in Lebanon