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FINANCIAL NEWS
FDI into Arab countries may drop 16.7% in 2011
19 Oct 2011
(MENAFN) The Inter-Arab Investment Guarantee Corporation (IAIGC) said that foreign direct investment (FDI) into the Arab region in 2011 could fall 16.7 percent to USD55 billion from USD66.2 billion recorded last year, reported Emirates 24/7.
The IAIGC added that the decline would result from the political upheaval that swept the region along with the global economic conditions, mainly Europe’s debt crisis and the slowdown in the US economic growth.
It also said that FDI in Arab countries that were hit by political turmoil would fall the most, where in Egypt, it could drop to around USD500 million from USD6.38 billion a year ago, whereas it could plunge to USD500 million from around USD3.8 billion in Libya, and it might go down to USD100 million in Bahrain from USD156 million.
It is worth noting that FDI flow into the Arab region started to drop following the global financial crisis in 2008.
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