ABU DHABI, 2nd July, 2017 (WAM) -- A new study on the determinants of foreign direct investment, FDI, in Arab countries has been developed by the Abu Dhabi-based Arab Monetary Fund, AMF, using a standard economic model.
The study indicates that the bigger and more open the market is, the more receptive and capable it will be to draw FDI, noting, however, that inflation has its own negative bearing on a country's ability to ensure consistent foreign capital inflows. Among several other recommendations, the study stated that minimising the public sector's role and leveraging the private sector's participation in the economy are necessary to propel economic reforms and enhance productivity and competitiveness. The study underscored the importance of upgrading infrastructure services and developing robust legislation conducive to attracting FDI into Arab countries. Availability of skilled and highly experienced manpower immensely contributes to accelerating FDI, the study noted.Copyright Emirates News Agency (WAM) 2017.
