Figures released by the United Nations Conference on Trade and Development (UNCTAD) show that foreign direct investment (FDI) in 18 Arab economies totaled $28.3bn in 2017, constituting a decrease of 11.7% from $32.1bn in 2016. FDI inflows to Arab countries accounted for 4.2% of FDI in developing economies and for 2% of global foreign direct investment in 2017. The UAE was the largest recipient of FDI in the region with $10.4bn, or 36.6% of total FDI in Arab countries, followed by Egypt with $7.4bn (26.1%), Morocco with $2.7bn (9.4%) and Lebanon with $2.6bn (9.3%); while Iraq and Yemen posted negative flows of -$5.03bn and -$270m, respectively, in 2017. In parallel, FDI in Bahrain rose by 2.1 times in 2017, followed by flows to Qatar (+27.4%), Morocco (+23%), Mauritania (+21.5%), Oman (+11.1%), the UAE (+7.8%), Jordan (+7.2%), Djibouti (+3.1%), Lebanon (+0.7%) and Sudan (+0.1%). In contrast, inflows to Saudi Arabia fell by 81% in 2017, followed by Palestine (-31.5%), Kuwait (-28.2%), Algeria (-26.4%), Egypt (-8.8%) and Tunisia (-0.6%). Further, FDI inflows to the 18 Arab countries were equivalent to 1.2% of their aggregate GDP in 2017, down from 1.4% of GDP in 2016. FDI inflows to Djibouti were equivalent to 8.1% of its GDP last year, followed by Mauritania (6.4% of GDP) and Lebanon (5.1% of GDP). 
Source: UNCTAD, International Monetary Fund, Byblos Research