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FDI projects in region decline 7%, capital investment shrinks 17% in H1-21

FDI projects in region decline 7%, capital investment shrinks 17% in H1-21
There was a decline in the capital investment to $12.4 billion

Mubasher: The number of foreign direct investment (FDI) projects in the Arab countries has decreased by 6.9% to 285 during the first half (H1) of 2021, according to a report by The Arab Investment & Export Credit Guarantee Corporation (Dhaman) on Thursday.

There was also a plunge of 61.8% in the capital investment to $12.4 billion in the first six months of 2021.

A positive performance of FDIs in Arab countries could continue during 2021, following a 2.5% rise in 2020 despite a decline in the number of greenfield FDI projects in Arab countries and their capital investment.

“The peculiarity of the Arab situation, the expected extraordinary activity of several countries in the field of enterprise attraction and foreign direct investment, and the epidemic, political and economic developments in the region would determine how the year 2021 exactly looks like,” Dhaman’s Director-General, Abdullah Al Sabeeh, commented.

Global reports expected a limited recovery of FDI influx worldwide by 10% to 15% until the end of 2021, following the negative impacts of the COVID-19 pandemic on the size of inflows during 2020. FDIs are also projected to keep rebounding in 2022 to reach the 2019 level of $1.5 trillion, based on the best-case scenario.