WAIPA’s Executive Leadership Committee holds strategy meeting

WAIPA’s Executive Leadership Committee holds strategy meeting

Global association, currently led by Fahad Al Gergawi, CEO of Dubai FDI, discusses developments and future outlook against the backdrop of unprecedented global challenges

The Executive Leadership Committee of the World Association of Investment Promotion Agencies (WAIPA) held its meeting against the backdrop of unprecedented global challenges facing foreign direct investment (FDI) caused by the COVID-19 pandemic and its economic impact.

Led by Fahad Al Gergawi, President of WAIPA and CEO of Dubai FDI, the Executive Leadership Committee discussed the situation and reviewed a number of initiatives and the future outlook presented by Boštjan Skalar, Executive Director and CEO of the Association; Ismail Erşahin, Deputy Executive Director, and Programme Advisor Hassan Mohalal. The Committee also discussed WAIPA’s future plans and strategy in the presence of the two vice-presidents and the regional directors for the regions of East and Southeast Asia, Eastern Europe, the European Union, Central Asia, the Middle East and North Africa, Sub-Saharan Africa, Central America and the Caribbean, Oceania, and South America.

Fahad Al Gergawi said: “Investment promotion agencies (IPAs) are at the forefront of the economic recovery efforts today, at a time when government policies will play a pivotal role in considering FDI as a priority and a cornerstone in their efforts to revive economies affected by the repercussions of COVID-19.  The priority is to close the gap in lost job opportunities during the difficult period by focusing on strategic sectors such as healthcare, medical technology, food production, and food technology and strengthening the foundations of the logistics and supply chain sector as well as the digital economy and innovation.”

The Committee discussed the development of WAIPA’s new strategy document in the face of the global challenges as well as preparations for the WAIPA World Congress 2021, which will be held in October 2021 in Abu Dhabi as part of UNCTAD’s World Investment Conference.

Al Gergawi said: “WAIPA is working to promote the values and benefits of cooperation, knowledge sharing, exchange of experiences, continuous development of competencies, and regional integration among its member countries. The current crisis has proved that IPAs can remain competitive while working together for a shared future to benefit their cities, nations, and regions and overcome the current challenges by working to attract foreign investments that bolster the economy, society, and the environment, while creating better opportunities for a more sustainable, resilient, and prosperous future for the whole world.”

According to the Global Investment Trends Monitor published in January 2021 by the United Nations Conference on Trade and Development (UNCTAD) – which is a member of WAIPA’s Consultative Committee – global FDI in 2020 witnessed a drop of 42% from USD 1.5 trillion (AED 5.5 trillion) in 2019 to an estimated USD 859 million (AED 3.15 trillion). Declines were witnessed across all forms of FDI, including M&As (Mergers & Acquisitions), greenfield projects, and project finance. This has brought global FDI below USD 1 trillion for the first time since 2005.

According to UNCTAD’s World Investment Report, FDI is projected to decline by a further 5% to 10% in 2021 before a significant recovery begins in 2022. Policy interventions to mitigate the economic effects of the pandemic would play a key role in the recovery. The report highlights the importance of the actions and strategies of nongovernmental organisations, such as WAIPA, in enabling a quicker recovery by promoting cooperation amongst IPAs, enhancing their access to decision-enabling information, and building their capacities to attract inward investments to their respective countries.

While the COVID-19 economic crisis has served to remind nations how interconnected the world is today, it has also underlined the importance of multi-stakeholder collaboration and the need for systemic resilience, cooperation, and sustainable development.

WAIPA’s current Steering Committee was formed at the end of 2019 when Fahad Al Gergawi assumed its presidency. Deepak Bagla, MD and CEO of Invest India, and Mohamed Abdel Wahab, Executive Director of Egypt’s General Authority for Investment and Free Zones, hold the joint vice-presidency of the Committee, while Mohamed Al Musharrakh, CEO of Invest in Sharjah, is the director for the Middle East and North Africa region.