Foreign direct investment by Gulf Cooperation Council (GCC) countries reached approximately $22 billion in 2014, according to the 2015 World Investment Report, India was the top destination for Gulf projects last year, with approximately 73 projects totaling $3.6 billion, followed by the United States with 24 projects, noting that Saudi Arabia ranked third among Arab countries as the top investor abroad with approximately $5 billion, after Kuwait and Qatar.
Real estate investment leads the way
The report revealed that real estate projects led foreign direct investment by Gulf Cooperation Council (GCC) countries in 2014, with total capital expenditure reaching nearly $9 billion—more than double that of the sector that ranked second, which was the financial services sector.
Kuwait, Then Qatar, Then Saudi Arabia
The report estimated Saudi Arabia’s investments at approximately $5 billion in 2014, Kuwait topped the list for the second consecutive year with investments totaling $13 billion, while Qatar ranked second with $7 billion in investments, tying with Turkey in investment volume, followed by the United Arab Emirates with approximately $3 billion.
India is the most attractive destination for Gulf investments
The report stated that India attracted the largest number of foreign direct investments from Gulf countries, with 73 new projects totaling $3.6 billion. The United States ranked second, with 24 projects totaling $1 billion, The United Kingdom ranked third as the top destination for projects, with approximately 14 projects worth $3.5 billion, Egypt ranked fourth with a total of 12 projects worth $3.8 billion, Turkey fifth with 11 projects worth $384 million, and Morocco sixth with about 9 projects worth $1.1 billion.
Decline in Foreign Investment
The report revealed a 16.1% decline in foreign direct investment inflows over the past year, to $1.23 trillion, as a result of the continued fragility of the global economy, in addition to the liquidation of some investments and the prevailing anxiety and uncertainty affecting investor decisions due to growing geopolitical risks. The report, released by the United Nations Conference on Trade and Development (UNCTAD) in collaboration with the Arab Investment and Export Credit Guarantee Corporation in Kuwait «Daman,» that foreign direct investment from Gulf countries increased slightly last year in terms of the number of projects, but saw a decline in capital expenditure to approximately $22 billion.
