FDI In Arab Countries Falls 16.4% In 2009

Total foreign direct investment (FDI) in Arab countries fell 16.4% to $80.60bn in 2009 from $96.48bn in 2008, according to figures in a report in Arabic entitled The Investment Climate in the Arab World, published in June by the Arab Investment and Export Credit Guarantee Corporation. The figures for 2009, which are preliminary and include 18 of the 21 reporting Arab countries, show that Saudi Arabia continues to be the biggest recipient of FDI, with $35.50bn (or 44% of the total), followed by Qatar with $8.70bn (10.8%), the UAE with $8.60bn (10.7%), Egypt with $6.7bn (8.3%) and Lebanon with $4.80bn (6.0%). Also they indicate that FDI to Libya was sharply down in 2009 and that Kuwait’s share of FDI has consistently been very low since 2005. 

For Saudi Arabia, Libya, Egypt and the UAE, FDI was higher in 2008 than in 2009. The report attributes this fall to the world recession, but notes that the Arab countries suffered less than other regions in the world. At the same time the Arab countries, according to the report, offered attractive conditions for foreign capital, namely an improvement in the investment climate in a number of countries with lower taxes and import duties; bilateral agreements, economic and administrative reforms (electronic government); commitment to transfer more investments to the private sector; establishment of new industrial cities and free zones; and availability of reliable economic statistics.

Foreign Direct Investment In Arab Countries: 2005-09 ($Mn)

Country

2009*

 2008

 2007

 2006

 2005

Jordan

2,400

 1,954

 1,950

 3,268

 1,774

Bahrain

257

 1,794

 1,756

 2,915

 1,049

Algeria

2,310

 2,646

 1,662

 1,795

 1,081

Saudi Arabia

35,500

 38,223

 24,318

 18,293

 12,097

Sudan

2,900

 2,601

 2,436

 3,541

 2,305

Somalia

-

 87

 141

 96

 24

Iraq

920

 488

 485

 383

 515

Kuwait

146

 56

 123

 122

 234

Morocco

2,500

 2,388

 2,803

 2,450

 1,653

Tunisia

1,770

 2,761

 1,618

 3,312

 782

Djibouti

9

 234

 195

 164

 59

Oman

-

 2,928

 3125

 1,688

 1,538

Syria

1,500

 2,116

 1,242

 659

 583

Palestine

-

 29

 28

 19

 47

Qatar

8,700

 6,700

 4,700

 3,500

 2,500

Lebanon

4,800

 3,606

 2,731

 2,675

 2,624

Libya

844

 4,111

 4,689

 2,013

 1,038

Egypt

6,700

 9,495

 11,578

 10,043

 5,376

Mauritania

84

 103

 153

 155

 814

UAE

8,600

 13,700

 14,187

 12,806

 10,900

Yemen

655

 463

 917

 1,121

302

Total

80,595

 96,483

 80,837

 71,018

 46,691

* Preliminary.

Source:Compiled from data in The Investment Climate in the Arab World.

Copyright MEES 2010.