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FDI in GCC declines 35% in 2011

07 Sep 2012

(MENAFN) A report by the UN Conference on Trade and Development (UNCTAD) revealed that foreign direct investment (FDI) flow into the Gulf Cooperation Council (GCC) countries dived by around 35 percent last year to USD25.9 billion, reported Emirates 24/7.

The report attributed the big decline to the postponement of several large projects in both Saudi and the UAE as a result of difficulties in securing project funding.

On the other hand, the report showed that FDI flows out of the GCC surged by 53 percent in 2011, reaching USD21.8 billion, recovering from 2 straight years of declines.

It is worth noting that the North Africa region, which was swept with the Arab Spring, recorded the steepest declines in FDI inflows, due to the lack of socio-political stability and security.

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