Latest news with #UNConferenceonTradeandDevelopment
Scoop
30-06-2025
- Business
- Scoop
New UN Report Charts Path Out Of Debt Crisis Threatening Global Development
On Friday, Deputy Secretary-General Amina Mohammed launched a new report, Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing. She was joined by experts Mahmoud Mohieldin and Paolo Gentiloni, along with Rebeca Grynspan, Head of the UN Conference on Trade and Development (UNCTAD). A growing crisis 'Borrowing is critical for development,' Ms. Mohammed said, but today, 'borrowing is not working for many developing countries, over two-thirds of our low income countries are either in debt distress or at a high risk of it.' The crisis is accelerating, Ms. Grynspan warned. More than 3.4 billion people now live in countries that spend more on interest payments than on health or education – 100 million more than last year. Debt service payments by developing countries have soared by $74 billion in a single year, from $847 billion to $921 billion. 'The nature of this crisis is mostly connected to the increase of debt servicing costs,' Mr. Gentiloni explained. 'Practically, the debt services costs doubled in the last ten years.' Prepared by the UN Secretary-General's Expert Group on Debt, the report reinforces the commitments put forward in the Compromiso de Sevilla, the outcome document of the Fourth International Conference on Financing for Development – taking place next week. A path forward The report outlines 11 actions that are both technically feasible and politically viable. Mr. Mohieldin explained that the recommendations fall under two key goals: providing meaningful debt relief and preventing future crises. It identifies three levels of action: At the multilateral level: repurpose and replenish funds to inject liquidity into the system, with targeted support for low-income countries. At the international level: establish a platform for borrowers and creditors to engage directly. At the national level: strengthen institutional capacity, improve policy coordination, manage interest rates, and bolster risk management. 'These are eleven proposals that are doable and that only need the political will of all the actors to be able to make them real,' Ms. Grynspan stressed.
Business Recorder
28-06-2025
- Business
- Business Recorder
Developing states' debt service tops $921bn: UN
UNITED NATIONS: Debt service payments by developing countries soared by $74 billion in 2024, ie, from $847 billion to $921, according to a new UN report, which points out that two-thirds of the low income nations are either in debt distress or at a high risk of it. The report, 'Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing,' was launched on Friday by UN Deputy Secretary-General Amina Mohammed. Mohammed was joined by experts Mahmoud Mohieldin and Paolo Gentiloni, along with Rebeca Grynspan, Head of the UN Conference on Trade and Development (UNCTAD). Debt and climate — I 'Borrowing is critical for development,' Ms Mohammed said, but today, 'borrowing is not working for many developing countries, over two-thirds of our low income countries are either in debt distress or at a high risk of it.' The report showed a 'silent crisis' of surging debt service payments in low-income countries and charted the path out of the debt crisis threatening global development. Ms Mohammed regretted that a decade after the adoption of the Sustainable Development Goals (SDGs), development was facing serious headwinds. On her part, Grynspan warned that the crisis was accelerating. The report showed more than 3.4 billion people now live in countries that spend more on interest payments than on health or education, 100 million more than previous year. 'The nature of this crisis is mostly connected to the increase of debt servicing costs,' Gentiloni explained. 'Practically, the debt services costs doubled in the last 10 years.' Prepared by the UN Secretary-General's Expert Group on Debt, the report reinforced the commitments put forward in the 'Compromiso de Sevilla', which is the outcome document of the Fourth International Conference on Financing for Development – taking place in Sevilla, Spain, next week. The report outlines 11 actions that are both technically feasible and politically viable. Mohieldin explained that the recommendations fall under two key goals: providing meaningful debt relief and preventing future crises. It identified three levels of action including repurpose and replenish funds to inject liquidity into the system, with targeted support for low-income countries at the multilateral level. The other is establishing a platform for borrowers and creditors to engage directly at the international level: At the national level, the report recommended strengthening institutional capacity, improving policy coordination, managing interest rates and bolstering risk management. 'These are 11 proposals that are doable and that only need the political will of all the actors to be able to make them real,' Grynspan stressed.
Arabian Post
20-06-2025
- Business
- Arabian Post
UAE Secures Tenth Spot in World FDI Rankings
The United Arab Emirates drew AED 167.6 billion in foreign direct investment in 2024, climbing to tenth position globally, according to the UN Conference on Trade and Development's World Investment Report 2025. This 48.7 percent surge from 2023 cements the UAE as a top-tier destination for international capital, with greenfield projects playing a central role. Foreign investors backed 1,369 new greenfield ventures worth AED 53.3 billion, placing the UAE second globally in announced projects, trailing only the United States. Remarkably, nearly 37 percent of total FDI into the Middle East went to the UAE. Sheikh Mohammed bin Rashid Al Maktoum described the achievement as 'an international vote of confidence in the UAE's economy', adding that AED 37 of every AED 100 invested in the region now enters the UAE. He attributed the growth to a unified national development agenda under President Sheikh Mohamed bin Zayed Al Nahyan, underpinned by strategic policy clarity and government cohesion. ADVERTISEMENT The UAE's cumulative FDI stock has reached AED 994.9 billion, reflecting a compound annual growth rate of 10.5 percent since 2015. This growth trajectory builds on a decade-long expansion, with inflows growing from AED 31.6 billion in 2015 to AED 167.6 billion in 2024. A diverse range of sectors attracted foreign capital. Software and IT services projects led greenfield values with 11.5 percent, followed by business services, renewable energy, oil and gas, and real estate. Energy-specific inflows to renewable initiatives reached AED 4.8 billion, helping drive a national target to triple clean-energy capacity by 2030. The Ministry of Investment, established in 2023 with Mohamed Hassan Al Suwaidi as minister, was credited with orchestrating this outcome through regulatory reforms and global outreach. Under its stewardship, clear legislation and incentives—including full foreign-ownership rights, a standard corporate tax of 9 percent, and streamlined licensing—have enhanced the investment environment. Global rankings reflect these advances: the UAE placed fifth in the 2024 Global Talent Competitiveness Index and third in the 2024 Stanford AI Index for AI talent attraction. The nation has also forged 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties, further easing entry for international investors. National strategy for the next decade envisions doubling cumulative FDI to AED 1.3 trillion by 2031, aligned with the National Investment Strategy 2031 which prioritises sustainable growth through sector diversification. Initiatives focus on attracting innovation and green investments while scaling existing operations. Despite a global slowdown in productive FDI—with global flows down 11 percent adjusted for conduit economies—the UAE has charted a positive 2.8 percent rise in greenfield projects, underscoring its resilience. Legal insight from White & Case points to ongoing sector-specific reforms that will deepen the FDI ecosystem, including possible relaxation of onshore investment restrictions and expansion of free zone offerings.
Mint
19-06-2025
- Business
- Mint
Global FDI shrinks for second year in 2024, UN warns of worsening outlook for 2025
New Delhi: Global foreign direct investment (FDI) declined 11% in calendar year 2024 to $1.5 trillion, marking a second consecutive year of double-digit contraction, while international project finance deals slumped 27%, the United Nations said Thursday. Investment activity weakened sharply, particularly in major economies such as China and India. The World Investment Report 2025 by the UN Conference on Trade and Development (UNCTAD) noted that after stripping out financial flows routed through European conduit economies, global FDI actually rose 4% last year. But overall, the report offers a sober assessment of global investment trends, especially in developing Asia, which remains the world's largest recipient region. FDI inflows into developing Asia fell 3% in 2024, reflecting growing uncertainty in cross-border capital flows. China saw one of the steepest drops, with inflows plunging 29%, extending the sharp retreat from the previous year. India recorded a smaller 2% decline, though UNCTAD pointed out that an uptick in greenfield project announcements suggests that much of the new investment is yet to translate into actual flows. Southeast Asia offered a rare bright spot: the Asean bloc attracted a record $225 billion in FDI, up 10% year-on-year. Despite hopes of a rebound, UNCTAD warned that the investment outlook for 2025 has turned sharply negative, citing persistent geopolitical tensions and economic headwinds. 'The outlook for global investment in 2025 has turned negative,' the report said, citing downgrades across key indicators such as GDP growth, capital formation, exports, investor sentiment, and market stability. 'While tariffs have triggered a few supply chain realignment projects, their dominant impact has been to sharply elevate investor uncertainty,' it added, noting that deal and project activity hit record lows in early 2025. UN Secretary-General António Guterres, in the report's preface, underscored the broader reversal of global integration. 'Rising trade tensions, policy uncertainty and geopolitical divisions risk making the investment environment even worse,' Guterres said. The global economy continues to face a confluence of challenges—from ongoing wars in Ukraine and the Middle East to tighter financial conditions and policy uncertainty in the US. "The global economy continues to grapple with a complex set of challenges: mounting debt, persistent underperformance in GDP growth, geopolitical tensions, and structural shifts in trade and investment flows," said Rebeca Grynspan, secretary-general of UNCTAD. "What is most alarming, however, is the continued deterioration of investment flows into key sectors aligned with the Sustainable Development Goals," Grynspan added. "The world can least afford to fall short of these goals." UNCTAD flagged sharp declines in investment into sectors aligned with the Sustainable Development Goals (SDGs). Infrastructure investments dropped 35%, renewable energy fell 31%, and spending on water, sanitation and hygiene contracted 30%. Agrifood investments declined 19%. Only health and education bucked the trend, posting a 25% increase. Semiconductors and the digital economy saw the strongest investment surges—rising 140% and 107% respectively—while global value chain–intensive industries grew a modest 1%. The number of greenfield investment projects worldwide rose 3%, while cross-border mergers and acquisitions jumped 14%. In developed economies, financial transactions and corporate restructuring shaped FDI trends in 2024, reflecting supply chain shifts and international tax reforms. FDI flows to Europe declined 11% to $198 billion, and by more than half when adjusted for conduit flows that distort headline numbers. All major European economies saw sharp declines. North America stood out, with FDI rising 23%, supported by strong mergers and acquisitions activity.
India Today
16-05-2025
- Business
- India Today
High on AI India hits top league
The global AI race is hotting up, and India is now a contender. The country cracked the top 10 in private investment in AI globally, bringing up the rear with $1.4 billion (Rs 11,875 crore), a UN Conference on Trade and Development (UNCTAD) report announced in April. The US was top dog with $67 billion (Rs 5.7 lakh crore) in 2023, while China came in a lowly second with $7.8 billion (Rs 66,163 crore). India did much better in 'cloud infrastructure', where it was tied third with Australia (China and the US took the top two posts). But we did go one up on China in GitHub developers, taking the No. 2 spot with a 12.8 million-strong army. The Americans, with 19.7 million nerds heating up the servers, took the top spot. Apparently, we are now also a leader in 'creating GenAI projects on GitHub'. Photo: Shutterstock
