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FINANCIAL NEWS
Arab 2011 FDI to drop 10%-15%
08 Aug 2011
(MENAFN) The Inter-Arab Investment Guarantee Corporation (IAIGC) said that due to the regional political unrest, this year, foreign direct investment (FDI) into the Arab region would be forecasted to drop between 10 percent and 15 percent reaching between USD50 billion and USD55 billion, reported Emirates 24/7.
The IAIGC added that in 2011, total Arab GDP would be expected to grow by 4.2 percent from 3.8 percent last year reaching about USD2.34 trillion, moreover, as a result of increasing global oil prices and oil output in some Arab countries, fiscal and current account balance would be forecasted to record a surplus.
It also said that last year, FDI flow into the Arab countries fell by around 23 percent reaching USD64.3 billion compared with USD83.9 billion in the previous year.
It is worth noting that in 2011, inflation will pick up to 6.03 percent and public debt will reach USD618 billion, whereas foreign debt will be expected to reach around USD740.2 billion.
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