KUWAIT CITY, Nov 29, (Agencies): Kuwait topped Arab countries at the level of “exports of investments” to Arab states in 2009, according to a report released by The Inter-Arab Investment Guarantee Corporation and Credit Exports on Tuesday.
Kuwaiti investments in eight Arab countries amounted to approximately $6. 1 billion, some 31.9 percent of the overall inter-Arab businesses. These investments in Saudi Arabia were estimated at $4.3 billion and in the United Arab Emirates, $1.2 billion.
Abu Dhabi came second in terms of businesses in Arab countries, $5.1 billion, some 26.3 percent of the total inter-Arab investments, followed by Bahrain, $1.7 billion, some 8.7 percent. Qatar followed, with $1.2 billion, 6.5 percent, then Jordan, $1.1 billion, 5.8 percent.
The report showed that 18 Arab states drew Arab investments worth $80.7 billion compared to $95 billion in 2008, attributing the drop to impact of the global financial meltdown. However, it indicated that the investment atmosphere in the Arab states remained largely regular due to the enacting of some vital legislations, increasing incentives for investors, slashing taxes and drawing up bilateral and multi-party transactions.

It also indicated at the continuation of reform efforts, namely the expansion of the e-government schemes, abidance of Arab governments by privatization strategies, increasing the investment opportunities, establishing industrial zones and towns, promotion diversification and improving accuracy of statistics.
The flow of foreign direct investment into Arab states dropped 15.1 percent last year due to the ongoing impact of the global economic meltdown, a pan-Arab organisation said on Tuesday.
Total FDI in the 18 states dropped to $80.7 billion in 2009 from $95 billion the previous year, the Kuwait-based Arab Investment and Export Credit Guarantee Corp. said in its annual report.
But the organisation said the region’s decline was the lowest among international economic blocs, citing an improving investment climate in most Arab nations.
OPEC kingpin Saudi Arabia, the largest Arab economy, accounted for $35.5 billion of all FDI into Arab states in 2009, although it declined from $38.2 billion the previous year, the report said.
Gas-rich Qatar was second with $8.7 billion, up from $6.7 billion the previous year.
FDI in the United Arab Emirates plunged to $8.5 billion from $13.7 billion in 2008, the report said.
Foreign investment in Egypt fell from $9.5 billion in 2008 to $6.7 billion last year, while it rose for Qatar, Lebanon, Sudan, Algeria, Iraq, Yemen and Kuwait.
The report covered only 18 Arab countries as information on the remaining four states was not available.