Saudi Arabia emerges as top destination for FDI in Arab world for 3rd successive year in a row

Saudi Arabia has emerged as the top destination for FDI in the Arab world for the third successive year in a row.

It is followed by United Arab Emirates and Lebanon. According to the latest report by the Kuwait based inter-Arab Investment Guarantee Corporation (IAIGC), foeign investors pumped in nearly $12.2 billion in Saudi Arabia in 2012 ,while UAE received $9.6 billion.

Lebanon came third with FDI receipts around $3.67 billion, followed by Algeria with nearly $2.9 billion .

The FDI inflow was at $2.88 billion to Morocco, $2.79billion to Egypt, $2.48billion to Sudan, $1.9billion to Tunisia and about $1.48billion to Oman.

The report has revealed that the total FDI into the Arab countries grew by nearly 9.8 per cent to around $47billion in 2012 from $42.9 billion in 2011.

It showed that 14 Arab League members recorded an increase in FDI inflow while it was lower in five countries--Saudi Arabia, Sudan, Jordan, Iraq and Lebanon.

In terms of capital outflow, the UAE emerged as the number one Arab capital exporter, pumping nearly $57.7billion 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 around $30 billion. Kuwait was ranked third with around $22 billion.

Although the wealthy emirate emerged as one of the least attractive regional destinations for foreign investment, with capital inflow standing at around $11billion until the end of 2012.
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