As a result of soaring oil prices, a marked increase was recorded in foreign direct investment (FDI) to both Saudi Arabia and the UAE, according to a report released by the UN Conference on Trade and Development (UNCTAD).
The report indicated that most of the FDI was invested in the energy sector, telecommunications and real estate, according to <i>Gulf Daily News</i>.
In world's wealthiest nations, FDI increased in 2005, reaching some $573.2 billion, an increase of 38 percent. The spike comes after a four year slump in such investment.
The sum of FDI in developing nations, furthermore, was more than twice as much as developing nations in Asia, Latin America and Africa.
A spate of cross-border mergers and acquisitions by companies also helped fuel explosive growth in FDI in the developed world.
FDI inflows emerging economies rose to $274 billion, an increase of some 13 percent, most of which went to South Africa, Egypt and the Sudan.
