GENEVA — The UAE is a globally recognized investment destination with a business-friendly environment, said Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD).
Grynspan shared her optimism for the World Investment Forum (WIF) in Abu Dhabi, scheduled for October 16th to 20th, 2023. She highlighted the UAE’s longstanding partnership with UNCTAD.
She praised the UAE for hosting the forum, which will convene global investment stakeholders, business leaders, the private sector, financial markets, government officials, and small and medium-sized enterprises (SMEs).
“The Abu Dhabi forum will serve as a pivotal platform for investors to connect and collaborate. It will also motivate financial institutions, which have strengthened in recent years, to invest in sustainable infrastructure projects and companies adhering to environmental and social standards,” she said.
Grynspan emphasized the forum’s goal to transform sustainable investment. She pointed out that while the world has abundant funds, there’s a need for innovative strategies to channel them into vital sectors like sustainable development, renewable energy, and the blue economy. “The forum also seeks to boost investments in health, education, and infrastructure projects in developing nations.”
She elaborated on how the forum plans to tackle current global investment challenges, noting that the financial crisis isn’t the sole global hurdle. “We’re also grappling with the repercussions of the COVID-19 pandemic and climate change on developing nations, compounded by rising living costs in these countries amidst sluggish economic growth.”
The international official identified two critical issues: “Firstly, the global share of foreign direct investment (FDI) dipped to 12 percent in 2022 but began rebounding in 2023. Secondly, the majority of FDIs crucial for sustainable development are channeled to affluent countries, with a mere 2 percent of the total global FDI inflow reaching Africa. This pattern must shift, redistributing investments more equitably worldwide to foster sustainable growth.”
Grynspan discussed a $2.2 trillion investment shortfall in the energy sector highlighted in UNCTAD’s annual foreign direct investment report. She emphasized the essential role of the private sector in bridging this gap, noting that public funds and development banks alone wouldn’t be enough. She also underscored the importance of international collaboration to draw private investment into the energy sector, accelerating the shift towards a clean and sustainable energy future.
“The WIF in Abu Dhabi presents a pivotal opportunity to promote investment in climate change initiatives. With 150 events spanning five days, including sessions on foreign investment in climate change, the forum aims to mobilize the investment community and COP28 attendees to advance towards a cleaner, sustainable future,” she added. Grynspan expressed optimism that the forum would play a significant role in finalizing investment and finance preparations for COP28, propelling global efforts to address climate change.
She elaborated on the forum’s objective to bridge environmental experts and economists, asserting that the event offers an invaluable chance to realize this aim and yield results that bolster COP28.
Grynspan indicated that the forum’s second segment would delve into critical topics like energy transition, carbon markets, sustainable infrastructure, healthcare financing, and SMEs. She affirmed UNCTAD’s dedication to tackling the world’s most urgent investment requirements, including the $100 billion yearly investment shortfall for sustainable development goals and the $350 billion annual gap for food systems.
She further emphasized the forum’s role as a venue for stakeholders to brainstorm and devise innovative solutions to these challenges, spotlighting its significance in enhancing the UAE’s global reputation as an investment nexus and the intrinsic connection between investment, trade, the Paris Agreement, and climate action.
Additionally, the UAE is set to host the 13th World Trade Organization Ministerial Conference, positioning it as a central figure and a beacon for global investments.
Grynspan concluded by stating that UNCTAD’s primary message for the forum revolves around addressing the world’s most critical challenges and fostering equitable and widespread investment for a sustainable future for everyone. “By harnessing technological advancements, the forum presents a unique platform to achieve these objectives,” she said.