In a Value that Reached 89 Billion USD, The Kingdom Accounted for 78% of Foreign Investment in Arab Countries

The Kingdom topped the list of countries attracting foreign investment in the Arab region in 2007. It accounted for 78% of the total investments received during the year which was worth 89 billion dollars, said a recent report of the Council of Arab Economic Unity on foreign direct investment in Arab States: that foreign investments in comparison to Arab countries during 2006 and 2007 shows that seven Arab countries recorded an increase in investment flows namely Saudi Arabia, Jordan, Egypt, Syria, Libya, Lebanon and Djibouti.

The report revealed that 12 Arab countries attracted about 113.7 billion U.S. dollars of foreign direct investment during 2007, registering the highest level of investment flows to Arab countries, compared with 62.2 billion dollars in 2006.

The appreciation that foreign investment flows to Arab countries in 2007 rose by 70.2 billion dollars, a growth rate of 161%.

The report attributed this surge in foreign investment to a set of internal factors, including greater flexibility in the legislative frameworks for foreign direct investment, and the improvement of its methods of promotion, as well as the improved investment climate as a result of continued reform efforts by facilitating administrative procedures. The increase in the number of service centers to provide comprehensive and necessary information, as well as improvement in the degree of disclosure of data and the degree of coverage in accordance with internationally agreed standards, as well as the reduction of tax rates and types of customs duties and the implementation of e-government programs in many Arab countries.

The report added that among these factors also is the launch of major projects in the Arab region such as economic cities, as well as continued high prices for oil and minerals, raw materials and commodities, which led to attracting more investments to industries and services related to oil and gas.