Bahrain's attractive investment climate and the capacity to absorb maximum foreign investments in all vital sectors have put the Kingdom at the top in terms of investment performance among the GCC countries by the World Investment Report 2008, a senior UN official who launched the WIR 2008 in Manama yesterday said.
Nazha Benabbes Taarji, Director of Investment Promotion at the United Nations Conference on Trade and Development (UNCTAD) in a pre-launch interview of WIR 2008 highlighting the salient features of Bahraini's economic climate said in the Kingdom the FDIs in 2007 performed at its optimum level and benefits shared by the entire spectrum of the economy.
She lauded the steps taken by the Bahraini authorities by attracting more FDIs as well as opening up many areas for foreign investors as part of a strategic move.
Talking about the GCC economic climate Nazha Benabbes Taarji said the record oil revenues and excess liquidity which runs into trillions of dollars has bolstered the region's overall economic strength and made it a preferred region for foreign investors. The robust economic growth in West Asia in general and the GCC in particular contributed towards a sustained growth in flow of foreign investments.
Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board said:
"This report reflects the great strides Bahrain has made towards modernising and liberalising our economy, with substantial investment in creating sustainable industries and economic activities such as the automotive, telecoms and financial services sectors. Bahrain is proud of its record as a leading destination for business and finance. It is the gateway to the Middle East and we will continue to forge a diverse, vibrant economy fully equipped for the demands of the world economy in the 21st century."
Saudi Arabia fetched the highest foreign direct investments among the GCC states and the Kingdom ranked top recipient in the World Investment Report 2008 with a total size of $24 billion FDIs out of total $43 billion attracted by the GCC in 2007.
The level of foreign direct investment flowing into all six GCC states increased by 30 per cent in 2007 from the previous year at $43 billion and overall in the Middle East and North Africa (MENA) region, FDI increased by 12 per cent to $71 billion, even though Iraq, Jordan, Lebanon, Syria and Yemen saw a drop in this figure by 20 per cent to $6.4 billion.
Bahrain's position as a regional leader for foreign investment has been confirmed after it was ranked number one in the GCC, and 12th globally, for inward foreign direct investment performance in the "World Investment Report 2008" announced today at the United Nations Conference on Trade and Development in Geneva.
Bahrain - internationally recognised as having the most open and liberal economy in the Middle East - was rated above fellow GCC states of UAE, Qatar, Oman, Saudi Arabia and Kuwait by the 2008 World Investment Report, which ranks countries by the Foreign Direct Investment they receive relative to their economic size.
The Economic Development Board and MENA OECD Investment Center hosted the regional launch last night of the (UNCTAD) World Investment Report 2008 titled Transnational Corporations and the Infrastructure Challenge. The report is published annually to analyze foreign direct investments (FDI) in countries.
The report was launched in Manama at a press conference held at the Diplomat Radisson SAS Hotel and Spa where Dr Abdullah Al-Sadiq, Vice Chairman of MENA Investment Centre gave the opening speech on behalf of Dr Supachai Panitchpakdi, Secretary-General of UNCTAD. Present were Nazha Al Taraji, Director of Investment Promotion at UNCTAD, amongst board members of the MENA Investment Center and Bahraini economists.
The report showed that Bahrain attracted $1.756 billion in FDI in 2007 and the Kingdom was ranked 2nd in the Gulf and 9th globally in the Outward FDI performance index. The index is based on factors such as ease of conducting business and the improvement of infrastructure in a country.
The World Investment Report also highlighted the increase in local investment which is growing more rapidly than foreign investment as countries wisely utilize surplus oil revenues to develop and improve their economies.
The roots of Bahrain's success lie in its unique social and economic attributes: the Kingdom's economy is recognised as the most free and diverse in the Middle East and its society as the most liberal, together with its strategic location in the Gulf allowing rapid access to Qatar and Saudi Arabia and strong trade links with booming South Asian economies. Bahrain is ideally suited to foreign companies looking to access lucrative Gulf markets It is distinctions such as these and its skilled Bahraini workforce and cost competitiveness that make Bahrain a primary destination for foreign business, foreign investment and expatriates.
By Mahmood Rafique Business Correspondent
