Sharp decline in private capital flow to the Middle East

Published June 25th, 2001 - 02:00 GMT

The total amount of private capital invested in the Middle East has fallen in the past four years, reported the UN Conference on Trade and Development (UNCTAD). The separate reports of the IMF (International Monetary Fund) and the IIF (Institute of International Finance), however, are inconsistent with regards to the actual decline in figures.  


While the IMF reports a decrease of 1,900 percent of global net private capital flows to Europe and the Middle East for the year 2000, the IIF reports a 30 percent decline solely in the Middle East. Figures from the latter report a net capital inflow of $7 billion in 2000 relative to $10 billion the previous year.  


It should be noted, however, that the two sources provide remarkably different aggregate levels of total global net private capital flows. According the IIF, private capital flows around the world increased four percent in 2000, relative to the IMF’s figure of a net decline of 46 percent. 


The IMF is an international organization established in 1946 for the purpose of surveillance, financial assistance, and technical assistance to its 183 member countries. It promotes international monetary cooperation, exchange stability, orderly exchange arrangements, as well as fosters economic growth and temporary financial assistance to those countries. — (MENA Report) 

© 2001 Mena Report (

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