New report expects 15% rise in FDI inflows to Arab World
The Arab Investment & Export Credit Guarantee Corporation expects a growth of up to 15% in the volume of foreign direct investment (FDI) inflows into the Arab World this year. This positive prediction comes despite the uncertain conditions in the global economy.
A report prepared by the Arab Investment & Export Credit Guarantee Corporation projects a growth rate of 4.5% for the Arab economy this year. In addition, it predicts a growth of 14% for the Arab external trade, which will amount this year to US$1.9 trillion compared to US$1.7 trillion in 2009.
The report indicates also improvement in the Arab financial markets. Their total capitalization rose by over 17% at the end of last year to hit US$903.4 billion. The report went on to project a growth in the activity of mergers and acquisitions in the Arab region. This activity in the Gulf region alone is predicted to reach US$ 25 billion in 2010.