ابو الاسهم
02-10-2005, 07:19 PM
Manama Saturday, October 01, 2005
Bahrain has topped the list of Arab countries for Foreign Direct Investment (FDI) Performance, while Qatar, followed by the UAE, topped the list for Potential FDI Performance, according to the United Nations World Investment Report 2005
Foreign Direct Investment Performance ranks countries according to the levels of FDI they have achieved in relation to their available resources. The potential FDI performance category ranks countries according to the potential of a country to attract more foreign investment taking into account its existing infrastructure
Bahrain was ranked 27th in this year's world FDI Performance rankings overall. The UAE ranked 104th on FDI Performance, behind Bahrain (27th) and Qatar (63rd), but ahead of Saudi Arabia (121st) and Kuwait (138th). The world's largest economy, the US, ranked 114th
Both Qatar and the UAE fared better in terms of FDI Potential. Both are in the UN's Top 25 economies on the Inward FDI Potential Index. Qatar ranks 7th in the world, the UAE is placed 22nd. They are the only two Arab economies in the 25
That the UAE lies so far down in performance, but so high up in terms of potential, suggests the country in not pulling in the FDI it should. The UAE pulled in $840 million in 2004 up significantly from 2003 when it secured just $30 million. However, in both 2001 and 2002 the country's FDI was above $1 billion
Bahrain, by contrast, is punching above its weight, recording three straight years of FDI increases despite questions over its existing infrastructure. FDI flows were $865 million in 2004, up from $517 million in 2003 and $217 million in 2002
FDI has not played a huge role in the development of Arab economies largely as a result of investor perception of risk, while sanctions imposed on several countries have impeded their integration into the world economy
In the Middle East regulation has also prevented international companies from being able to invest into regional economies. Foreign ownership laws have restricted access to key industries such as oil and gas. The UAE, one of the region's leading economic lights, still restricts foreign ownership to a minority interest of 49 per cent outside free trade zones
However, economies are both deregulating and beginning the process of privatising state controlled industries and companies
As a result the Western Asian region which includes the Middle East has seen the largest percentage increase in FDI over the last year, jumping by 51 per cent
FDI inflows to West Asia rose from $6.5 billion in 2003 to $9.8 billion in 2004. Bahrain, Jordan, Saudi Arabia, Turkey and the UAE saw the sharpest rise in inflows
from
http://www.zawya.com/Story.cfm/sid184668/SecCountries/pagQatar/lok051750051001
Bahrain has topped the list of Arab countries for Foreign Direct Investment (FDI) Performance, while Qatar, followed by the UAE, topped the list for Potential FDI Performance, according to the United Nations World Investment Report 2005
Foreign Direct Investment Performance ranks countries according to the levels of FDI they have achieved in relation to their available resources. The potential FDI performance category ranks countries according to the potential of a country to attract more foreign investment taking into account its existing infrastructure
Bahrain was ranked 27th in this year's world FDI Performance rankings overall. The UAE ranked 104th on FDI Performance, behind Bahrain (27th) and Qatar (63rd), but ahead of Saudi Arabia (121st) and Kuwait (138th). The world's largest economy, the US, ranked 114th
Both Qatar and the UAE fared better in terms of FDI Potential. Both are in the UN's Top 25 economies on the Inward FDI Potential Index. Qatar ranks 7th in the world, the UAE is placed 22nd. They are the only two Arab economies in the 25
That the UAE lies so far down in performance, but so high up in terms of potential, suggests the country in not pulling in the FDI it should. The UAE pulled in $840 million in 2004 up significantly from 2003 when it secured just $30 million. However, in both 2001 and 2002 the country's FDI was above $1 billion
Bahrain, by contrast, is punching above its weight, recording three straight years of FDI increases despite questions over its existing infrastructure. FDI flows were $865 million in 2004, up from $517 million in 2003 and $217 million in 2002
FDI has not played a huge role in the development of Arab economies largely as a result of investor perception of risk, while sanctions imposed on several countries have impeded their integration into the world economy
In the Middle East regulation has also prevented international companies from being able to invest into regional economies. Foreign ownership laws have restricted access to key industries such as oil and gas. The UAE, one of the region's leading economic lights, still restricts foreign ownership to a minority interest of 49 per cent outside free trade zones
However, economies are both deregulating and beginning the process of privatising state controlled industries and companies
As a result the Western Asian region which includes the Middle East has seen the largest percentage increase in FDI over the last year, jumping by 51 per cent
FDI inflows to West Asia rose from $6.5 billion in 2003 to $9.8 billion in 2004. Bahrain, Jordan, Saudi Arabia, Turkey and the UAE saw the sharpest rise in inflows
from
http://www.zawya.com/Story.cfm/sid184668/SecCountries/pagQatar/lok051750051001