Stability and reform critical to improving FDI in the Middle East
With recent World Bank studies indicating that the Middle East only receives a modest one percent of global foreign direct investment (FDI), a new research report has highlighted the key challenges to attracting more international capital to the region.
Executive Director of the Middle East Infrastructure Development Congress David McLean commented that the research study highlighted both opportunities and threats to the flow of investment. “There is huge potential in the region and major investment projects are happening.
However, there are some challenges concerning broader political stability, economic reform, and legal frameworks that need to be successfully tackled or they will hamper further opportunity and growth.”
The research study was conducted during a series of in-depth interviews with 30 senior executives from companies representing the banking and finance, power, water, oil and gas, and construction sectors many of whom are looking to expand their investment base in the region.
The overwhelming majority of executives interviewed identified the creation of an attractive environment for foreign direct investment in key countries of the region as the most vital factor. The role and political will of host governments was seen as critical to providing a workable framework with acceptable terms and conditions for infrastructure investment.
However, it was also noted that many countries in the region have committed themselves to removing these obstacles and are making significant progress in the creation of an environment conducive to private sector investment in infrastructure.
The full findings of the research study will be released at the forthcoming meeting of the Middle East Infrastructure Development Congress to be held in Dubai at the Moevenpick Hotel from September 21-22. — (menareport.com)
© 2003 Mena Report (www.menareport.com)