UAE investors have invested an enormous US$55 billion into foreign markets over the past three decades, allowing the UAE to emerge as the largest Arab capital exporter, accounting for around one-third of Arab capital flows. The highest foreign direct investment (‘FDI') outflows from the UAE were during 2006-2008, when they totalled nearly US$41 billion. These outflows slowed in the following years to reach an average of US$2 billion per year. Nonetheless, UAE FDI flows increased significantly to US$ 4.4 billion in 2012.

The key driver has been growth in intra-regional FDI in the Middle East, with recent reports of renewed investment by Gulf States in Egypt, while China, India and some Southeast Asian have become favoured destinations for UAE investors, who have also made significant investments into Europe.

This investment activity is not without its risks, not least in the Middle East and North Africa, which has witnessed a wave of popular uprisings demanding freedom, jobs and social justice. This article outlines the protection afforded under international and regional law to outward foreign direct investment by UAE nationals, companies and other entities in neighboring Arab States and elsewhere.