UAE Investment Value in Indonesia Decreases Over the Past Three Years

The value of United Arab Emirates (UAE) investments has shown a declining trend over the past three years. This is despite a peak of US$69.94 million in 2018, according to the Indonesian Investment Coordinating Board (BKPM).

In 2019, UAE investment fell to US$69.73 million, further decreasing to US$21.57 million in 2020. By November 8, 2021, the value had plummeted to US$7.78 million. Although the year isn't yet over, this is the lowest investment value recorded in the last 10 years.

However, the number of UAE investment projects in Indonesia has increased over the past three years. There were 59 projects in 2018, rising to 77 in 2019 and surging to 118 in 2020. As of November 8, 2021, there were 89 UAE investment projects in Indonesia.

Recently, the Indonesia Investment Authority (INA) signed a framework investment agreement with the Abu Dhabi Growth Fund (ADG). This agreement aims to support UAE investments worth US$10 billion channeled through INA.

The agreement aims to deploy capital across various financial instruments. Following the announcement of a US$10 billion investment directed by UAE Crown Prince Mohammed bin Zayed al-Nahyan in March 2021, the UAE will become the largest anchor investor in INA.