Private investments expected to increase in the Arab states

Financial experts in the United Arab Emirates on Monday expected the increase in private investments in the Arab states by 25% for this year. But they warned that the lack of regional industrial opportunity impedes this investment.

A report by "Capital towers" for investments which has Dubai as a headquarters showed that the value of private deals in the Arab establishments was less than one billion dollars in 2004, noting it is expected to be increased to $ 2.6 billion by the fall of 2007.

The executive director of Aref Naqwa towers said in a press conference in Dubai that his company considers the area prepared for increasing the participation of the private sector investors.

The comany had launched a second fund for investments with the aim to become the largest fund of its kind in the area with a targeted capital of $ 500 million, of which $ 300 million has been already supplied.

The comany said it finalized deals at $ 500 million since its foundation in 1996 and achieved a return estimated at 35%.

Meantime, (HSBC) bank said on Sunday that it bought a share which was not disclosed in (AMA Info.), which is an information technology company via the Internet in Dubai, in the fourth investment finalized by the bank's fund for investment in the Middle East. Its investments are $ 118 million.

This came at a time when stock markets in the Gulf region witnessed a sharp increase in 2004, thanks to the increase in oil prices. But certain finance experts in the conference complained over the shortage of investment opportunities in the region.

Worthy mentioning that some 98% of all companies in the Arab states are family owned. Experts say that these companies are not ready yet to open its books and ask the help of foreign investors.