UAE remains second largest Arab capital recipient

Foreign investors pumped nearly $9.6 billion in capital into the UAE in 2012 allowing the country to maintain its position as the second largest Arab recipient of foreign director investment (FDI) after Saudi Arabia, according to official data.

While FDI into Saudi Arabia declined in 2012, the UAE recorded an increase for the third consecutive year and was among a few Arab nations to record high growth in FDI inflow last year, showed the figures by the Kuwaiti-based inter-Arab Investment Guarantee Corporation (IAIGC), a key Arab League organisation.

FDI into the UAE sharply fell to around $5.5 billion in 2010 compared with 2009 in line with an international trend in the wake of the 2008 global fiscal distress. But capital rebounded to nearly $7.67bn in 2011 and continued its recovery in 2012.

IAIGC’s data showed Saudi Arabia remained the largest Arab FDI recipient in 2012 despite a decline over the previous year as it received around $12.18bn.

Lebanon came third with around $3.67 billion, followed by Algeria with nearly $2.9bn. FID flow stood at $2.88 billion to Morocco, $2.79bn to Egypt, $2.48bn to Sudan, $1.9bn to Tunisia and about $1.48bn to Oman.

Total FDI into the Arab countries grew by nearly 9.8 per cent to around $47bn in 2012 from $42.9bn in 2011, according to the report.
It showed 14 Arab League members recorded an increase in FDI inflow while it was lower in five countries—Saudi Arabia, Sudan, Jordan, Iraq and Lebanon.

Last year’s flow raised to $82.2 billion the total FDI received by the UAE since it was founded 42 years ago, the second largest Arab destination for foreign capital. Total foreign capital flow into Saudi Arabia stood at around $186.8bn.

As for capital outflow, the UAE emerged as the Arab capital exporter, pumping nearly $57.7bn into foreign markets until the end-2011.

Saudi Arabia, the largest Arab economy and the world’s top oil exporter, came second, with FDI outflow totalling $29.9bn.

Kuwait was ranked third with around $22bn although the wealthy emirate emerged as one of the least attractive regional destinations for foreign investment, with capital inflow standing at around $11bn until the end of 2012.
 

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