Qatar’s outward FDI grows by 21% to $51bn
29 Nov 2017 - 0:01
By Satish Kanady / The Peninsula
Qatar’s outward foreign direct investment (FDI) stock rose 21 percent to $51bn last year, as compared to $42.2bn recorded a year ago. The country’s inward FDI stock touched $33.9bn in 2016, marginally up from the previous year’s $33.1bn. At the end of 2016, Qatar saw top foreign companies involved in a total of 286 major projects, said The Arab Investment & Export Credit Guarantee Corporation (AIECGC).
During 2012-2016, real estate, hotel and tourism sectors were seen maximum exposures to inward investment capital expenditure. US, UK, France, UAE, Italy, Spain, India, Singapore and Switzerland are the top countries those are investing in Qatar, AIECGC noted in its 2017 ‘Investment Climate in Arab Countries’ report.
According to AIECGC, GCC countries attracted 527 new projects in 2016 related to 434 companies with a CAPEX of about $31bn. These projects provided more than 51,000 new jobs. The UAE alone attracted 57.3 percent of these projects.
Foreign investment projects in Gulf countries remained relatively stable at the beginning of the last decade. The CAPEX of these projects reached $68.4bn in 2010 and then reached $ 67.5bn in 2011 before rising to $71bn in 2012, after which it started a downward trend before reaching $ 51.2bn.
Between 2010 and 2016, the GCC countries attracted 4629 projects of 3109 foreign companies at an estimated CAPEX of $199bn, creating an estimated 408,000 new jobs. Between 2010 and 2016, the United States was the largest investor in the Gulf region at an estimated cost of $31.8bn.
Sector-wise, the real estate accounted for 18 percent of the investment projects in the Gulf countries between 2010 and 2016, followed by the chemicals sector with 17 percent, oil and natural gas sector with 15 percent, and the hotels and tourism sector with 10 percent.
As a whole, inward FDI flows in Arab countries witnessed an increase by 25 percent, going from $24.6bn in 2015 to $30.8bn in 2016.
However, these flows didn’t even reach the third of the record flows estimated at $96.3bn reached in 2008. Inward investments in Arab countries represented 1.8 percent of the world total amount of $1774bn, and 4.8 percent of the developing countries’ total amount of $646bn.
The year 2016 witnessed the establishment of 773 new foreign investment projects in the Arab countries, a slight increase from 2015, and these projects are related to 616 companies. Its CAPEX was estimated at $94bn, providing more than 115,000 jobs. China topped the list of the most important investors in the region in 2016 with a value of $29.5bn, representing 31.9 percent of the total.
The total CAPEX or expenditure of FDI projects in the Arab countries between 2003 and 2016 was estimated at more than $1trillion, about 8.7 percent of the world’s combined CAPEX of $12.6trillion.