D. Jassim Hussein
Unfortunately, it was revealed the World Investment Report 2011, issued by the United Nations Conference on Trade and Development (UNCTAD) before the days of declining levels of foreign direct investments in the GCC in 2010. The only exception is Oman's success in registering a remarkable growth in the volume of foreign direct investment received, and on the back of the promotion of investment opportunities, especially in the tourism sector in the Sultanate.
The performance of the Gulf in general different from the global trend which has seen a rise in the volume of foreign direct investment received internationally by 5 percent in 2010 as a material to the case of the global economy recovers from the financial crisis. In contrast, the decline in FDI inflows in the world by about 18 per cent in 2009 in the midst of adapting to the financial crisis that has been disclosed in the summer of 2008.
Saudi Arabia provided
In any case, Saudi Arabia maintained its position as the largest raiser of foreign direct investment received for the West Asia region. The value of FDI inflows to Saudi Arabia, $ 28.1 billion in 2010, retreating from the previous level of $ 35.5 billion. And formed the incoming foreign investments in Saudi Arabia 48 per cent of the total investments received for the West Asia region, which includes the Gulf Cooperation Council (GCC) as well as Iran and Turkey. Return back, attracted foreign investment of Saudi Arabia $ 35.5 billion in 2009, as well as 38.1 billion in 2008 and $ 24.3 billion in 2007 and $ 18.3 billion in 2006 and $ 12 billion in 2005. According to UNCTAD, the average value of FDI inflows to Saudi Arabia $ 245 million annually for the period from 1990 to 2000. In total, is the performance of Saudi Arabia in 2010, much better than average, especially compared to what it was several years ago only.
Back side of this outstanding performance in general on the back of Saudi Arabia's accession to the WTO at the end of 2005 and the owner of the improvements and upgrades to the laws and economic legislation of the Kingdom which included opening the financial services sector to foreign competition. Among other things, the Saudi authorities decided to reduce the number of prohibited activities for foreign investors in what is the negative list.
Decline in inward investment
With regard to the performance of the rest of the Gulf Cooperation Council (GCC), Qatar's economy suffered a decline in the dilemma of foreign direct investment from $ 8.1 billion in 2009 to $ 5.5 billion in 2010. But the expected rise of large-scale foreign investments in Qatar in the country's readiness to host the World Cup 2022.
On the other hand, was recorded a slight decline in the volume of incoming foreign investment to the UAE, which means staying in the range of four billion dollars. It is worth mentioning, the UAE has attracted foreign direct investment of 13 billion dollars in 2008, but there was a significant decline in the value of investments coming in the wake of disclosure of Dubai's debt crisis and the subsequent decrease in the level of trust the UAE economy as a whole. Also reduced the value of foreign investment coming into Bahrain from $ 257 million to $ 156 million in the last report. In turn, Kuwait attracted foreign direct investment worth $ 81 million, and this disappointing performance is due in part to the differences between the government and the National Assembly on the process of economic reforms, particularly with regard to problematic to allow foreign companies to invest in the oil sector.
Importance of foreign investment
Can be defined as foreign direct investments, such as those of long-term investment in real estate and the establishment of factories. On this basis, does not enter foreign investment in the stock market within this definition; because it is subject to change at any moment. But it's different with regard to foreign direct investment, where the remains of buildings and factories for a relatively long period, even with the change of owners.
Foreign investment is a measure of the presence of confidence by foreign investors in the economies of other countries. The foreign direct investments over the evidence of a successful conviction of the importance of international investors to invest in different countries, in view of the future prospects of these economies. What is certain is that there is international recognition of the importance of foreign direct investment and its ability to contribute in solving the economic challenges such as developing local infrastructure and promote competition in the local market and create new jobs for citizens.
According to the Organization for Economic Cooperation and Development, based in Paris, is not enough to remove restrictions on foreign direct investment until it is brought to the country; because the majority of countries are similar to the steps themselves. But studies show that international investors see that there are major factors attracted to invest in the region, specifically the existence of the business environment, market size and quality of infrastructure available and the productivity of labor.
Includes the concept of local market access to regional markets; underlines the need to strengthen economic cooperation and the Gulf States to provide an integrated economic unit six in the framework of the GCC common market.
Unfortunately, it was revealed the World Investment Report 2011, issued by the United Nations Conference on Trade and Development (UNCTAD) before the days of declining levels of foreign direct investments in the GCC in 2010. The only exception is Oman's success in registering a remarkable growth in the volume of foreign direct investment received, and on the back of the promotion of investment opportunities, especially in the tourism sector in the Sultanate.
The performance of the Gulf in general different from the global trend which has seen a rise in the volume of foreign direct investment received internationally by 5 percent in 2010 as a material to the case of the global economy recovers from the financial crisis. In contrast, the decline in FDI inflows in the world by about 18 per cent in 2009 in the midst of adapting to the financial crisis that has been disclosed in the summer of 2008.
Saudi Arabia provided
In any case, Saudi Arabia maintained its position as the largest raiser of foreign direct investment received for the West Asia region. The value of FDI inflows to Saudi Arabia, $ 28.1 billion in 2010, retreating from the previous level of $ 35.5 billion. And formed the incoming foreign investments in Saudi Arabia 48 per cent of the total investments received for the West Asia region, which includes the Gulf Cooperation Council (GCC) as well as Iran and Turkey. Return back, attracted foreign investment of Saudi Arabia $ 35.5 billion in 2009, as well as 38.1 billion in 2008 and $ 24.3 billion in 2007 and $ 18.3 billion in 2006 and $ 12 billion in 2005. According to UNCTAD, the average value of FDI inflows to Saudi Arabia $ 245 million annually for the period from 1990 to 2000. In total, is the performance of Saudi Arabia in 2010, much better than average, especially compared to what it was several years ago only.
Back side of this outstanding performance in general on the back of Saudi Arabia's accession to the WTO at the end of 2005 and the owner of the improvements and upgrades to the laws and economic legislation of the Kingdom which included opening the financial services sector to foreign competition. Among other things, the Saudi authorities decided to reduce the number of prohibited activities for foreign investors in what is the negative list.
Decline in inward investment
With regard to the performance of the rest of the Gulf Cooperation Council (GCC), Qatar's economy suffered a decline in the dilemma of foreign direct investment from $ 8.1 billion in 2009 to $ 5.5 billion in 2010. But the expected rise of large-scale foreign investments in Qatar in the country's readiness to host the World Cup 2022.
On the other hand, was recorded a slight decline in the volume of incoming foreign investment to the UAE, which means staying in the range of four billion dollars. It is worth mentioning, the UAE has attracted foreign direct investment of 13 billion dollars in 2008, but there was a significant decline in the value of investments coming in the wake of disclosure of Dubai's debt crisis and the subsequent decrease in the level of trust the UAE economy as a whole. Also reduced the value of foreign investment coming into Bahrain from $ 257 million to $ 156 million in the last report. In turn, Kuwait attracted foreign direct investment worth $ 81 million, and this disappointing performance is due in part to the differences between the government and the National Assembly on the process of economic reforms, particularly with regard to problematic to allow foreign companies to invest in the oil sector.
Importance of foreign investment
Can be defined as foreign direct investments, such as those of long-term investment in real estate and the establishment of factories. On this basis, does not enter foreign investment in the stock market within this definition; because it is subject to change at any moment. But it's different with regard to foreign direct investment, where the remains of buildings and factories for a relatively long period, even with the change of owners.
Foreign investment is a measure of the presence of confidence by foreign investors in the economies of other countries. The foreign direct investments over the evidence of a successful conviction of the importance of international investors to invest in different countries, in view of the future prospects of these economies. What is certain is that there is international recognition of the importance of foreign direct investment and its ability to contribute in solving the economic challenges such as developing local infrastructure and promote competition in the local market and create new jobs for citizens.
According to the Organization for Economic Cooperation and Development, based in Paris, is not enough to remove restrictions on foreign direct investment until it is brought to the country; because the majority of countries are similar to the steps themselves. But studies show that international investors see that there are major factors attracted to invest in the region, specifically the existence of the business environment, market size and quality of infrastructure available and the productivity of labor.
Includes the concept of local market access to regional markets; underlines the need to strengthen economic cooperation and the Gulf States to provide an integrated economic unit six in the framework of the GCC common market.
