Despite the events of the Arab Spring, in 2011 the number of FDI projects in the Middle East rose by 7.8% and their value increased by 2.2% on 2010
Clearly, there is still confidence in the Middle East’s attractiveness as an investment destination.
In this report, we highlight the latest foreign direct investment (FDI) trends in the Middle East and explore the views of decision-makers on the investment climate in the region.
Our survey reveals business leaders are optimistic about FDI in the region. The Middle East has many of the qualities that companies look for in an FDI destination:
- Solid fundamentals
- Strong demographics
- Government willingness to improve growth prospects
- A large, young and wealthy population
- Vast natural resources
- Increasing oil prices
Overall, investors remain positive about the Middle East, but still see some areas for improvement, including:
- R&D capacity
- Regulatory environment
- Technological readiness
- Innovation and entrepreneurship
The relatively stable Gulf Cooperation Council (GCC) countries such as Qatar, Saudi Arabia and the United Arab Emirates (UAE) remain FDI favorites. Investors are more cautious about non-GCC nations like Egypt and Libya.
Our report also highlights the differences in opinion between investors already operating in the region and those who are not.