Dubai: Brazil is increasingly viewing the Middle East as a source of investments.
According to the World Investment Report 2014 by the United Nations Conference on Trade and Development (UNCTAD), the Middle East’s foreign direct investment (FDI) increased by 65 per cent in 2013 compared to 2012, driven by increasing flows from Gulf Cooperation Council (GCC) states. The FDI flows are resources put into the economy’s productive sectors.
The UAE, Saudi Arabia, Bahrain, Qatar, Kuwait and Oman have a high level of foreign exchange reserves, specifically in their oil and gas industries, as per the report.
Qatar and Kuwait topped the GCC states in terms of investments abroad. The FDI flows to the UAE went up by 9 per cent to reach Dh10.5 billion, making it the second highest FDI recipient in the region last year after Turkey.
“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,” stated Michel Alaby, general aecretary and CEO of the Arab-Brazilian Chamber of Commerce.
Brazil received $64 billion (Dh235 billion) worth in investments in 2013.
According to the report, global FDI flows reached $1.45 trillion, up 9 per cent over 2012. The UNCTAD projects that FDI will further increase to $1.85 trillion in 2016.