‘More direct foreign investments’ into Arab countries needed: Dhaman Corp

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KUWAIT CITY, Aug 26 : The Arab Investment and Export Credit Guarantee Corporation (Dhaman) called on Arab countries, Thursday, to step up efforts to attract more foreign direct investments (FDI) amid fierce competition between regional and world countries. Dhaman stressed the need to draw more investors, mainly multinational companies, in light of their decreased investment activities due to the COVID- 19 pandemic. This would improve the investment climate, and rankings in relevant significant international indexes, it noted.

In a press statement, Dhaman’s Director-General Abdullah Ahmad Al-Sabeeh said on the occasion of issuing the second quarterly bulletin, (Dhaman’s Investment Bulletin) for 2021, the corporation expects the continuation of the positive performance of foreign direct investments in Arab countries during 2021. These expectations came after an unexpected rise by 2.5 percent during 2020 despite a decline in the number of Greenfield FDI projects in Arab countries and their capital investment during the same year. Al-Sabeeh said that “the mixed expectations of foreign direct investment (FDI) in the Region” is a result of acquisitions and investment in other instruments”. The global FDI database showed a fall in the number of foreign projects in the region in the first half of 2021 by 6.9 percent to 285 projects, in addition to a drop in the capital investment by 16.8 percent to USD 12.4 billion, compared with the same period of 2020. “The peculiarity of the Arab situation, the expected extraordinary activity of enterprise attraction and foreign direct investment, the epidemic, political and economic developments in the region would all determine how the year 2021 exactly looks like”,Al- Sabeeh explained., (KUNA)

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