An increase in the flow of foreign investment to the Arab states
Regional, Economics, 9/24/2004

The flow of foreign investment to the Arab states registered a large increase of 60% in 2003 in comparison with 2002, that seems to have been a result of the events of September 2001 in the USA.

A report by the Arab commission for investment guarantee, which has Kuwait as a headquarters, noted the increase of direct foreign investments in 21 Arab states that reached in 2003 $ 8.62 billion for $ 5.38 billion in 2002.

In 2001, the number of foreign investments in the Arab world reached $ 7.71 billion. The report which was published on Wednesday indicated that the flow of foreign investment receded at 30% in 2002, and recorded the first decrease for it since 1999.

Arab economists and experts considered that September attacks effected negatively the Gulf states especially the process of attracting foreign capitals with the aim to diversify its economies which are linked to oil.

Direct foreign investments increased in 2003 in 13 Arab states and receded in other 6, in addition to not investing in Iraq and areas of the West Bank and Gaza which fall under the Palestinian authority.

Morocco is one the top list in the increase of foreign investments from $ 482 million in 2002 to $ 2.28 billion in 2003.

Sudan occupied the second rate in investments which increased to $ 1.35 billion in 2003 in comparison with $ 713 million in 2002. Foreign investments in Jordan reached $ 379 million in 2003 for $ 56 million in 2002.

However, Algeria occupied the first position in the decrease of direct investment from $ 1.065 billion in 2002 to $ 634 million in 2003, while investments also receded in Egypt, Qatar, the United Arab Emirates, Tunisia and Yemen.

The report showed that direct investments in Saudi Arabia reached in 2003 $ 308 million after it receded from $ 615 million in 2002 following the migration of capitals.

The report which is based on data on investments in the world, prepared by the UN conference for trade and development, specified the share of the Arab states from foreign investment at 1.54% in 2003.

The report said that foreign investment in the world reached $ 559.5 billion in 2003 in comparison with $ 678.8 billion in 2002.

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