Gulf outflows hit $41b in 2007

Dubai: Gulf Arab states that account for some 95 per cent of capital outflows from the West Asian region invested a record $41 billion in foreign countries last year, according to a United Nations report on Wednesday.

Foreign direct investment (FDI) outflows from the Gulf Cooperation Council (GCC) almost doubled last year, and were six times the figure in 2004, the UN Conference on Trade and Development (UNCTAD) said in its latest World Investment Report.

FDI inflows to the six-nation bloc also jumped significantly, growing 20 per cent to $43 billion over 2006.

"These countries have seen relatively high inflows in recent years, especially Saudi Arabia, the UAE and Qatar, due to a growing number of energy and construction projects, as well as a notable improvement in the business environment," the report noted.

Overall, FDI in West Asia rose by 12 per cent to $71 billion, marking a fifth consecutive year of growth.

More than four-fifths of FDI into West Asia was concentrated in Saudi Arabia, Turkey, and the UAE. Saudi Arabia saw an increase of 33 per cent to $24 billion, while foreign investments in Turkey grew 10 per cent to $22 billion.

Capital inflows to Qatar rose seven-fold from their 2006 level.

Main sources of FDI were developed countries, while countries like India and China also contributed in projects in the region.

FDI outflows from West Asia reached $44 billion. This marked the fourth straight year of growth.

FDI inflows rise 30%

FDI inflows globally rose in 2007 by 30 per cent to $1.8 trillion despite the global financial and credit crises that began in the second half of the year.

FDI inflows to developed countries amounted to $1.25 trillion. The US remained the largest recipient country. FDI inflows to developing countries reached $500 billion, a 21 per cent increase over 2006.