22/08/2013
Foreign direct investment in the Kingdom drops to $ 12.2 billion in 2012
All the Gulf States recorded an increase in FDI inflows over the past year, with the exception of Saudi Arabia, which by virtue of the size of its economy is more affected by the trend of declining foreign direct investment globally. The Kingdom saw a decline in foreign direct investment totaled 25 up to 12.2 billion dollars, by 2012; however, the Kingdom remains the most attractive destination for foreign investment in the Arab world
According to a report issued by the National Bank of Kuwait, the flow of foreign direct investment to the Gulf States settled with the improvement in the confidence levels, with FDI to GCC countries rose slightly last year to 26.4 billion U.S dollars, beside the United Nations Conference on trade and development (UNCTAD) announced the end of a period of declines spread to three consecutive years, had peaked at $ 61.7 billion in 2008 before the financial crisis.
At the same time, FDI flows from the GCC States drops by 17% last year to 18.6 billion dollars. Kuwait was the largest investor abroad contributes about 41% of the outflows from the GCC worth 7.6 billion dollars, followed by Saudi Arabia with a value of $ 4.4 billion and 2.5 billion dollars.
The positive performance of the GCC reflected more when considering flows to developing economies and globally, which declined in 2012 by 4.4 % and 11.3% respectively. The GCC share of FDI to the developing States of 3.6 %to 3.8%. While global FDI flows, especially those from the developed countries, still affected by the decline in global banking and credit investors to avoid risks, the GCC countries have benefited as a destination for foreign investment because of high oil and gas prices, rebound in economic growth and the Government's ambitious investment projects. The region is also usually more than 50% of the total FDI to Arabic countries.
The improved FDI flows in the GCC attributed to important measures undertaken by the Gulf countries to facilitate business, where Saudi Arabia and the UAE, the two posts were in the 22 and 26 in the world respectively, because of the positive steps in the procedures, costs and the time required to start a business, trading across borders and permits for construction.
