ABU DHABI - The UAE and Qatar figure prominently in the list of the world's 25 most attractive destinations for investments, according to this year's World Investment Report (WIR) issued by the United Nations Conference on Trade and Development (UNCTAD), that covered a total of 140 countries.
The six-member Arab Gulf Cooperation Council (AGCC) states top the list of the most attractive Arab countries for foreign direct investment (FDI), the report stated.
The report's index covered 13 components for assessing a country's potential for attracting FDI, including growth rate of GDP, density of fixed telephone subscribers, average consumption of energy, access to higher education, quantum of exports and FDR reserves.
The 2004/05 Global Competitive Report, issued the World Economic Forum (WEF) has ranked the UAE on top of the list of Arab countries. This is the first time that the UAE has been credited so, with a competitiveness growth mark at 5.21, that places it first in the Arab world and 16th at the world level. The UAE topped the list with best scores in many indices including technological advancement, public institutional administration, general economic stability, level of competitiveness among business sectors and local work climate. On the macroeconomic environment, the UAE was placed 11th in the world-ranking list.
According to the Economy magazine of the Abu Dhabi Chamber of Commerce and Industry, a separate study conducted by the Arab Bankers Association placed the UAE third in the list of Arab countries with high intra-Arab investments.
The study pointed out that intra-Arab investment found focus in the services sector, followed by industry and agriculture. Despite the negative impact of the September 11 attacks in the US, the event has, in many ways, contributed positively to attract intra-Arab investment, particularly in the real estate sector, that witnessed a sharp rise.
Arab countries continue to encourage intra-Arab investment by turning attention to streamlining investment laws, setting up national authorities to oversee investment projects and creation of free zones, the report added.BY N. SRINIVASAN
© Khaleej Times 2004
