Riyadh-Amlak
The Arab Investment and Export Credit Guarantee Corporation (Daman) confirmed in its annual report on the investment climate in Arab countries for 2012-2013, revealing that FDI inflows to Arab countries increased by 9.8% to 47 billion dollars in 2012, compared to 42.9 billion dollars in 2011.
The report revealed that FDI inflows to Arab countries increased by 9.8% to 47 billion dollars in 2012, compared to 42.9 billion dollars in 2011.
Investment climate
The report stated that this slight increase came as a result of several positive and negative factors affecting the investment climate in Arab countries, including; the relative calm of political events in some countries in the region that entered the stages of political transition and the increase in flows to some of the main receiving countries in contrast to the decline in the performance of a number of other countries.
The report pointed out that the performance of Arab countries varied, as FDI inflows increased to 14 Arab countries: the UAE, Algeria, Morocco, Egypt, Tunisia, Kuwait, Oman, Bahrain, Libya, Qatar, Palestine, Mauritania, Djibouti, Yemen, on the other hand, inflows declined to 5 Arab countries: Saudi Arabia, Sudan, Jordan, Iraq, Lebanon and Somalia, while flows stabilized at the same levels as last year.
The Kingdom of Saudi Arabia is first in the Arab world
The Kingdom ranked first in the Arab world as the largest host country for foreign direct investment with inflows of 12182 million dollars and a share of 25.8% of the total, followed by the UAE in second place with a value of 9608 million dollars and a share of 20.4%, followed by Lebanon in third place with 3678 million dollars and 7.8%, Algeria in fourth place with 2900 million dollars and 6.2%, Morocco in fifth place with 2887 million dollars and 6.1%, and Egypt in sixth place with 2798 million dollars and 5.9%.
Arab ranking
The report added that Sudan ranked seventh in the Arab world in terms of the volume of inbound foreign direct investment with a value of $ 2488 million with a share of 5.3%, then Tunisia ranked eighth with a value of $ 1944 million with a share of 4.1%, then Kuwait ranked ninth with a value of $ 1864 million with a share of 4%, then Oman ranked tenth with a value of $ 1484 million with a share of 3.1%, then Jordan ranked 11th with a value of $ 1405 million with a share of 3% of the Arab total.
The report stated that Iraq ranked 12th in the Arab world with a value of $1275 million and a share of 2.7%, then Bahrain ranked 13th with a value of $891 million and a share of 1.9%, then Libya ranked 14th with a value of $720 million and a share of 1.5%, then Qatar ranked 15th with a value of $327 million and a share of 0.7%, and finally Palestine, Mauritania, Djibouti, Somalia and Yemen came last.
Investment Attractiveness
The Investment Climate Report, which reviewed the performance of 110 countries, including 17 Arab countries, in the “Daman Investment Attractiveness Index” for 2013, revealed that the Gulf countries - UAE, Kuwait, Bahrain, Qatar, Oman and Saudi Arabia - topped the Arab performance in the index, ranking in the top six places.
The Investment Climate Report, which this year saw the adoption of a completely new methodology in monitoring the investment climate and attractiveness of Arab countries to foreign direct investment, stated that Jordan came seventh in the Arab world with 31.2 points and ranked 57th in the world, followed by Tunisia in eighth place in the Arab world and 60th in the world, then Lebanon in ninth place in the Arab world and 64th in the world, followed by Morocco in tenth place in the Arab world and 66th in the world.
Egypt ranked 11th in the Arab world with a score of 27.4 points and ranked 67th globally, followed by Libya in 12th place in the Arab world and ranked 78th globally, and Algeria in 13th place in the Arab world and ranked 82nd globally.
The group of countries that performed very poorly in terms of attractiveness to foreign investment (well below the global average) included Syria, Yemen, Mauritania and Sudan.
Globally, the report showed that the Organization for Economic Cooperation and Development (OECD) countries dominated the top positions in the overall investment attractiveness index, led by the United States with 67.6 points, followed by Germany in second place globally with 66.4 points, and the United Kingdom in third place globally with 60.7 points.
Financial flows
Reports have also indicated that the Kingdom topped the MENA region in the volume of financial flows in May with $308 million, followed by Qatar and Dubai with $131 million and $129 million, respectively, according to Deutsche Bank's report.
Alexander Stafanowski, author of the study and research analyst at Deutsche Bank, said that the MENA markets recorded their highest levels of financing flows in the last five years, with inflows rising to $655 million in May 2013, a record level compared to the total outflows during the same period in 2012, which amounted to $192 million, adding that the region's markets recorded one billion dollars in net financing flows since the beginning of this year.
He emphasized that the recent revision of the Morgan Stanley index, which resulted in the inclusion of the UAE and Qatar markets in the emerging markets index, reflects the increasing confidence of foreign investors, and will benefit the markets of the region, to represent








