Foreign direct investment (FDI) has continued to pour into Arab states despite political upheavals and social unrest.
New figures from the Arab Investment & Export Credit Guarantee reveal FDI into Arab states rose 9.8% to US$47.1bn in 2012, with investment levels increasing in 15 of 20 countries according to available data for last year. Interestingly, an increase in FDI was recorded in all of the countries that have experienced an Arab Spring uprising except Syria, for which there was no available data.
The economies of Gulf Cooperation Council (GCC) states - namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) - are the most attractive for investments in the Arab region; the UAE topped the list with an investment growth rate of 25% in 2012 compared to the previous year. FDI in Kuwait increased by 118% last year to US$1.9bn.
Small and medium-sized enterprises (SMEs) are one of the fastest growing business segments in the GCC, largely thanks to their ability to seamlessly expand across borders and take advantage of newly forged relations with neighbouring countries. An enhanced bilateral trade relationship with India has recently been tabled after trade between the two regions increased from US$145bn in 2011-12 to US$158bn to 2012-2013.
TMF Group has offices stationed in the Middle East, Africa and India where our teams can help companies seamlessly expand across borders. With dedicated accounting, legal and HR and payroll staff globally, we can take care of the details, leaving you free to focus on your global ambitions.