DAMMAM, 1 June 2007 — A recent economic survey prepared by the Council of Arab Economic Unity (CAEU) said that Saudi Arabia topped the list of countries that attracted bilateral investments worth $28.8 billion in 2005, accounting for 75.8 percent of the total investment licenses issued for mutual Arab investments for that year.
The report to be submitted in the 85th session of the ministerial level meeting of the CAEU on June 7, said the total bilateral Arab investments reached $38 billion in 2005 against $5.9 billion in 2004.
This sharp increase is attributed to investment boom in Saudi Arabia. The report showed that 14 Arab countries attracted $27.9 billion worth of foreign direct investments in 2005, of which $4.6 billion went to Saudi Arabia, representing a 16.5 percent of total investments.
Morocco, Sudan, Libya, Kuwait and Syria are the other Arab countries that came next to the Kingdom. The six countries accounted for 72.5 percent of the total FDI that went to the Arab countries.
The report noted the marked economic performance in Arab countries particularly in terms of the GDP and growth rate in 2006 compared to the previous years. It said there was considerable expansion in investments accompanied by favorable economic policies and healthy reforms. There has also been structural reforms and encouragement to widen the role of the private sector. The spiraling oil prices accompanied by increasing production levels were also significant factors that bolstered the Arab economies in general.
Bilateral Arab trade registered notable growth at the rate of 31.7 percent in 2005, from 33.6 percent in 2004 and in stark contrast with 14.2 percent recorded in 2003. It coincided with the introduction of comprehensive customs exemptions for Arab commodities within the framework of the greater Arab Free Trade Zone launched in 2005. Mutual exports of Arab countries reached $42.6 billion in 2005 against $33.6 billion in 2004 and $25 billion in 2003. Revenues from bilateral Arab trade reached $38.9 billion in 2005 against $28.3 billion in 2004 and $21.4 billion in 2003, the report said.