Foreign direct investment (FDI) in the Middle East saw significant growth in 2023, with companies announcing 1,848 projects worth an estimated $88.3bn, according to a recent Thematic Intelligence report by GlobalData.

The report also noted that the Middle East ranked as the fourth most attractive region for FDI in 2024 by investor sentiment.

The Middle East region experienced an annual increase in both project activity and inbound capital investment from FDI.

Significant investors included Ireland-based Amarenco Solar and Denmark-based Copenhagen Infrastructure Partners, who announced plans for green hydrogen plants in Jordan and Oman, respectively.

The report also highlighted the top five FDI themes in the Middle East, which include digitalisation, strategic partnerships, supply chain management, geopolitics, and artificial intelligence (AI). As the world becomes more digitalised, foreign investors are looking to take advantage of the cost and time savings that a more digital approach can bring.

The US was the leading source market for FDI in the Middle East, with US companies announcing 362 projects in the region worth $36bn in 2023. This marked a substantial increase in capital investment, more than doubling the figures from the previous year.