Inter-Arab investments are only US $ 2.4 billion
Observers and specialists stress that the current improvement on the volume of inter-Arab investment, though positive, is still beyond the needed level and the set ambitions. They say that the Arab US $ 800 billion are mostly used out of the Arab economic work field, despite the drastic needs to these sums and the measures taken by many Arab states to introducing more flexible economic laws to attract Arab investors to take part in various investment projects.
However, the Arab economic report said that there are only five Arab states whose share was notable increased of Arab investments during the past five years. They are Syria, Jordan, Egypt, Sudan and Lebanon.
The report added that the sector of services and tourism was on top of the list among other various investment sectors.
The report also noted the increase in the volume of inter-Arab investment in 1999 to reach US $ 2.4 billion, representing an increase of US $ 200 million over the figures of 1986.
This rate is much less than the Arab economy as a whole needs. And this is an established fact that we have realized in recent years as it has become evident that the economics of all countries are in need of investment on the one hand, and in minimizing expenditure through lifting economic support for many foodstuffs items.
The report said that the increase which took place in the inter-Arab investment, despite its small rate, yet it means the success of the strategy the Arab league AL has embarked on to develop inter-Arab trade through promoting the activities of the free trade areas in the Arab region.
The report said that the volume of inter- Arab trade was US $ 400 million in 1990. It increased to US $ 922 million in 1991, but drastically receded to US $ 483 in 1992, as one of negative economic consequences of the Iraqi invasion of Kuwait and the continued recession of this volume to reach 308 million. Later, the report said, this volume continued to recede to reach US $ 308 million and then a gradual revival took place following an Arab economic decision taken by Arab decision makers to re-establish confidence among Arab markets to reach US $ 2.2 billion in 1998.
The report stressed that the volume of inter- Arab investment is still under the required level and the Arab ambitions. It noted that the value of these investment between 1985- 1999 and through 14 years did not exceed US $13 billion, which in average less than US $ one billion per year, and only representing 1.3% of the total Arab investment abroad, estimated at US $ 800 billion.
Many experts view that is it ripe time for the return back of Arab sums to its own economics and that this is a question left not only to business-men but also to political officials in the Arab states, where several Arab politicians still give priority to politics than the economics, despite the fact that the economics is the backbone for every and each social progress and development in any country of the world.