São Paulo – Qatari foreign direct investment (FDI) was down in 2012 from 2011. Conversely, FDI outflows from Saudi Arabia and the United Arab Emirates increased, as did those from the Middle East & Africa, according to a survey released this week by the Financial Times’ research division, fDi Intelligence.
According to the survey, 27 projects received Qatari foreign direct investment last year, down 29% from 38 in 2011. However, the Gulf country was the issuer of one of the highest amounts in one single investment: the Qatar Petroleum International invested US$ 3.6 billion in Cairo.
FDI from the United Arab Emirates, the leading issuer of FDI in the region, was up 26.4% in number of deals. The country invested in 220 foreign projects last year, as against 174 in 2011. Saudi Arabia invested in 63 projects last year, up 31.2% from 48 projects in 2011.
According to the survey, the Middle East and Africa were the only regions whose FDI outflow increased in 2012 from 2011, in number of projects, which was up 9.2%; still, the amount of funds invested was down 32.3%.
Inbound FDI
The amount projects which received FDI in the Middle East and Africa was down 11.7% in 2012. A total of 1,370 projects received FDI in the region in 2012; however, the amount invested was down 43.1%. Much of the investment originated from countries in the region itself, which goes to show that Arab and African countries are becoming regional players, according to the survey.
In 2012, 54 projects received FDI in Qatar, 291 in the Emirates, 147 in Saudi Arabia, 73 in Oman, 54 in Egypt, 54 in Nigeria, 50 in Kenya, 48 in Morocco, and 37 in Bahrain. FDI inflow was up 49.8% in Oman and 20% in Nigeria and Egypt. Morocco saw the highest rate of decline in FDI (34.25%) of all surveyed countries.
Sector-wise, FDI in the Middle East and Africa targeted 468 business and financial services projects; 226 information and communication technology projects; 91 industrial machinery, engine and turbine projects; 83 real estate, hotel and tourism projects; and 73 storage and transportation projects.
*Translated by Gabriel Pomerancblum
