The Arab-Brazilian Chamber of Commerce (ABCC) has expressed strong optimism over the Middle East (ME) as a source of investments after a report from the United Nations Conference on Trade and Development (UNCTAD) showed the region recording high foreign direct investment (FDI) outflows last year. According to UNCTAD’s World Investment Report 2014, the Middle East’s FDI surged by 65% in 2013 compared to 2012.
This growth was boosted by increasing flows from Gulf Cooperation Council (GCC) states. Saudi Arabia, Bahrain, Qatar, the United Arab Emirates (UAE), Kuwait, and Oman had a high level of foreign exchange reserves, specifically in their respective oil and gas industries, revealed the report. Meanwhile, Qatar and Kuwait led the GCC states in terms of investments abroad. Qatar increased its outflows by fourfold, while Kuwait sky-rocketed by 159%.
Moreover, FDI flows to the UAE rose by nine percent to $10.5 billion, making the country the second highest FDI recipient in the Middle East in 2013 after Turkey.
Michel Alaby, ABCC General Secretary and CEO, said: “The ABCC has always played a significant role in opening up opportunities from both regions to further their trade relations and investments. The Arab Nations and Brazil have been key trade partners and this reflects in the robust increase in trade values. These positive numbers of FDI to Arabs reflect an emerging and promising market for as we do believe that this will affect positively the bilateral relation between Brazil and Middle East.”
In 2013, the report showed that global FDI flow hit $1.45 trillion, up nine percent from 2012. It is worth noting that UNCTAD projects that FDI will further increase to reach $1.6 trillion in 2014, $1.75 trillion in 2015, and $1.85 trillion in 2016.
In Latin America, FDI flow grew by six percent in 2013 to reach $182 billion. Brazil, in particular, received a total of $64 billion in investments. According to UNCTAD, the sectors that benefitted the most were the automotive, electronics, and beverage industries. The organisation said it expects more investments in the Brazilian auto sector.
This growth was boosted by increasing flows from Gulf Cooperation Council (GCC) states. Saudi Arabia, Bahrain, Qatar, the United Arab Emirates (UAE), Kuwait, and Oman had a high level of foreign exchange reserves, specifically in their respective oil and gas industries, revealed the report. Meanwhile, Qatar and Kuwait led the GCC states in terms of investments abroad. Qatar increased its outflows by fourfold, while Kuwait sky-rocketed by 159%.
Moreover, FDI flows to the UAE rose by nine percent to $10.5 billion, making the country the second highest FDI recipient in the Middle East in 2013 after Turkey.
Michel Alaby, ABCC General Secretary and CEO, said: “The ABCC has always played a significant role in opening up opportunities from both regions to further their trade relations and investments. The Arab Nations and Brazil have been key trade partners and this reflects in the robust increase in trade values. These positive numbers of FDI to Arabs reflect an emerging and promising market for as we do believe that this will affect positively the bilateral relation between Brazil and Middle East.”
In 2013, the report showed that global FDI flow hit $1.45 trillion, up nine percent from 2012. It is worth noting that UNCTAD projects that FDI will further increase to reach $1.6 trillion in 2014, $1.75 trillion in 2015, and $1.85 trillion in 2016.
In Latin America, FDI flow grew by six percent in 2013 to reach $182 billion. Brazil, in particular, received a total of $64 billion in investments. According to UNCTAD, the sectors that benefitted the most were the automotive, electronics, and beverage industries. The organisation said it expects more investments in the Brazilian auto sector.
Source:
Mubasher
