DOHA: Foreign Direct Investments (FDIs) in GCC countries have increased manifold in the last 15 years. The FDI in the region has increased from $30bn in 2000 to $431bn in 2015, said Abdulaziz bin Hamad Al Ageel (pictured), Secretary General, The Gulf Organization for Industrial Consulting (GOIC).
FDIs in industrial projects in Qatar reached approximately 20%of the total investments in its industrial sector, the highest share compared to other GCC countries. Qatari cumulative FDIs’ share of the total GCC cumulative FDIs in France was about the third with a value of approximately $2bn in 2015, as a result of increasing economic relations between the two countries.
“Since 2000, GCC countries have been witnessing a remarkable increase in FDIs from about $30bn in 2000 to approximately $431bn in 2015. The average annual growth rate of FDIs in the GCC was two times bigger compared to the rest of the world- around 19%in GCC countries versus 9%internationally,” said Al Ageel in his presentation on “Strategic GCC-France Projects” during the forum GCC-France Economic Forum held at in Paris on October 18- 19.
“GCC investments abroad reached approximately $248bn, excluding sovereign funds valued at around $2.7 trillion. The 2008 global financial crisis resulted in an increase of the flow of foreign investments towards GCC countries that were viewed as a stable environment and safe haven for capital,” he added.
AlAgeel said that Saudi Arabia attracted 52%of the cumulative foreign investments, given its large economy and absorptive capacity, in addition to its unique geographic position. The UAE was the second GCC country attracting 26%of the total investments, followed by other GCC countries. He added there were approximately 2,303 joint industrial projects with foreign investments, which is 16%of the total GCC industrial projects that counted 16,890 in 2015.
