MANAMA, 11 August 2007 — Foreign direct investment in Bahrain is almost double the value of overseas investments by Bahrainis, according to a new report.
Bahrain also remained leader in the Gulf in terms of FDI as a percentage of gross fixed capital investment (GFCF) from 1997 to last year, and along with Qatar and the UAE the country is considered an FDI success story with high potential to attract further investment, reveals a study entitled Foreign Direct Investment and GCC Countries published by Dubai Chamber of Commerce and Industry (DCCI).
“FDI brings about improvements in technology, efficiency and productivity and these in turn stimulate economic growth,” said the report. “In this view the contribution of FDI to growth comes through the transfer of technology and management practices from the developed to developing economies.” From 2003 to last year, the stock of inward FDI as a ratio of the stock outward FDI was five for Qatar, four for the UAE, two for Bahrain, and 0.20 for Kuwait.
“These ratios show that Qatar, the UAE and Bahrain have more inward FDI stock by foreigners than their nationals outward FDI stock in foreign countries,” the report said.
“Bahrain, Qatar and the UAE are classified as front-runners, that is countries with both high FDI potential and high actual performance. Kuwait, Oman, and Saudi Arabia are classified as below potential, that is, countries with high FDI potential but low actual performance.”
Bahrain leads the field when it comes to FDI as a percentage of GFCF — with the former accounting for 31 percent of the latter.
That puts Bahrain ahead of Qatar on 26 percent, the UAE on 17 percent and Kuwait on less than one per cent, the report said.
