News
Private Arab investments cross $94bn mark
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Private investments among the Arab countries have totalled more than $94 billion (Dh344.9bn) over the past 12 years and the UAE has emerged as one of the top five destinations, according to official data.
The UAE was also rated as the second largest Arab exporter of foreign direct investment (FDI) to markets outside the Middle East, showed the figures by the Inter-Arab Investment Guarantee Corporation (IAIGC).
Saudi Arabia, the world's dominant oil exporter, was the top destination for private Arab capital during 1997-2007, receiving 40.5bn, more than 42 per cent of the total inter-Arab private investments of $94.5bn.
Lebanon emerged as the second largest recipient, with $12.1bn, followed by Egypt, with nearly $8.7bn.
The report showed Arab investments in Sudan topped $8.2bn, while those in the UAE were estimated at $4.6bn. But the report gave no figures for Arab investments in the UAE during 2007 on the grounds the country has yet to supply data on its capital outflow.
"Capital flow into the UAE largely picked up during 2007 because of an economic upswing and improvement of investment laws," a UAE banker said. "I am sure it was a record year for the UAE. This means cumulative investments are actually much higher and the UAE remains among the top Arab capital destinations."
The report by the Kuwaiti-based IAIGC, a key Arab League financial institution, showed 2005 recorded the highest Arab capital flow of around $37.2bn mainly because of a surge in Arab investments in Saudi Arabia, which received in excess of $28.7bn during that year.
The level is far higher than last year's investments of around $7bn and more than 30 times the 2004 flow.
Despite the surge in private investments in Arab countries, the capital remains a fraction of the total overseas Arab assets of more than $1 trillion.
Arab investors have been reluctant to commit large funds in their own countries on the grounds the region is a relatively small market, investment laws remain flawed and risks are high in some nations due to conflicts and other factors.
This was evident in the low Arab private capital invested in Palestine, estimated at $331m during 1995-2007. The investments were also negligible in war-battered Iraq and Somalia and small markets like Bahrain.
Private Arab capital was also relatively low in Qatar as it has been locked in a drive to attract and tap Western capital into its fast-growing LNG industry, which requires massive funds and technology.
Sector-wise, there was no breakdown but the report said services, real estate and farming have received the lion's share of the inter-Arab investments.
As for outgoing private FDI, Kuwait topped the list, with capital outflow of around $15.1bn.
The UAE came second, with around $10.9bn, followed by Saudi Arabia and Lebanon, with nearly $4.6bn and $3.2bn, respectively.
The report showed the cumulative Arab private FDI exported to foreign markets stood at $41.7bn during that period, a tiny portion of the total global exported FDI of nearly $8.3trn.
The UAE was also rated as the second largest Arab exporter of foreign direct investment (FDI) to markets outside the Middle East, showed the figures by the Inter-Arab Investment Guarantee Corporation (IAIGC).
Saudi Arabia, the world's dominant oil exporter, was the top destination for private Arab capital during 1997-2007, receiving 40.5bn, more than 42 per cent of the total inter-Arab private investments of $94.5bn.
Lebanon emerged as the second largest recipient, with $12.1bn, followed by Egypt, with nearly $8.7bn.
The report showed Arab investments in Sudan topped $8.2bn, while those in the UAE were estimated at $4.6bn. But the report gave no figures for Arab investments in the UAE during 2007 on the grounds the country has yet to supply data on its capital outflow.
"Capital flow into the UAE largely picked up during 2007 because of an economic upswing and improvement of investment laws," a UAE banker said. "I am sure it was a record year for the UAE. This means cumulative investments are actually much higher and the UAE remains among the top Arab capital destinations."
The report by the Kuwaiti-based IAIGC, a key Arab League financial institution, showed 2005 recorded the highest Arab capital flow of around $37.2bn mainly because of a surge in Arab investments in Saudi Arabia, which received in excess of $28.7bn during that year.
The level is far higher than last year's investments of around $7bn and more than 30 times the 2004 flow.
Despite the surge in private investments in Arab countries, the capital remains a fraction of the total overseas Arab assets of more than $1 trillion.
Arab investors have been reluctant to commit large funds in their own countries on the grounds the region is a relatively small market, investment laws remain flawed and risks are high in some nations due to conflicts and other factors.
This was evident in the low Arab private capital invested in Palestine, estimated at $331m during 1995-2007. The investments were also negligible in war-battered Iraq and Somalia and small markets like Bahrain.
Private Arab capital was also relatively low in Qatar as it has been locked in a drive to attract and tap Western capital into its fast-growing LNG industry, which requires massive funds and technology.
Sector-wise, there was no breakdown but the report said services, real estate and farming have received the lion's share of the inter-Arab investments.
As for outgoing private FDI, Kuwait topped the list, with capital outflow of around $15.1bn.
The UAE came second, with around $10.9bn, followed by Saudi Arabia and Lebanon, with nearly $4.6bn and $3.2bn, respectively.
The report showed the cumulative Arab private FDI exported to foreign markets stood at $41.7bn during that period, a tiny portion of the total global exported FDI of nearly $8.3trn.