Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai, at the Annual Investment Meeting at the Dubai International Convention and Exhibition Centre, with Shaikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of Dubai Culture, and other officials. Image Credit: Asghar Khan/Gulf News

Dubai: Libya is banking on up to $1 trillion (Dh3.67 trillion) in foreign direct investment to rebuild its war-torn economy.

Ahmad Salem Al Koshly, Libya's Minister of Economy, told a conference here yesterday that the country was expecting a huge cash injection, and said FDI from the UAE alone prior to the war clocked in at $13 billion.

While Libya currently faced many challenges, he said foreign companies had already moved back to the country to resume outstanding projects.

"What we are looking for is long-term investment," he said.

Meanwhile, Makhdoom Ameen Fahim, Pakistan Minister of Commerce, told the media on the sidelines of the Annual Investment Meeting that the UAE was leading the Arab countries in the size of its investments in Pakistan by $14 billion, a figure which is expected to grow to $25 billion by 2015.

Changed regimes

"UAE investment and trade with Pakistan stands out [and] their relations are booming. Investors and businessmen of the UAE have clear plans to invest more in Pakistan, and enlarge the two-way foreign trade," he said. Speaking at the meeting, Zafer Caglayon, Turkey's Minister of Economy, highlighted the strong relationship between economic growth and FDI.

"After liberating the market and the capital the FDI in Turkey could reach $110 billion between 2003 and 2011. It is almost seven times what was achieved in eight decades between 1923 and 2003 at $14.5 billion."

"Turkey is one of the emerging economies which has changed its trade and investment regimes. Turkey carried out this transformation by adopting a new liberal macroeconomic framework."

Turkey, as in many developing countries, has implemented foreign capital-promoting policies. Obstacles which prevent foreign capital from entering Turkey have been removed gradually. As a result the country has started to obtain larger amounts of FDI, he added.