A Bank of America Merrill Lynch report said the UAE's
economy was to see one percent and two percent growth in 2010 and 2011
respectively.
The bank, in its Global Economic Weekly Report, said the
UAE’s economy would be the worst performer in the region in both years.
However, it will be an improvement over the 1.4 percent growth contraction
witnessed by the country last year, the bank added.
Separately, a report by the UN Conference on Trade and
Development (UNCTAD) showed that foreign direct investment (FDI) channeled by
the UAE into global markets totaled $53.5 billion during 1990-2009, by far the
largest capital flow out of the Arab World.
The report revealed that the FDI flow out of the UAE, the
second-largest Arab economy, climbed to a record high of $15.8 billion in 2008
from $14.5 billion in 2007 before plunging to $2.7 billion in 2009 on the back
of the global financial crisis and lower oil prices.
Saudi Arabia, which according to the BoA Merrill Lynch
report will grow by 3.2 percent this year and 3.9 percent in 2011, came second
in the Arab World in terms of capital exports, pumping $40.3 billion in FDI
during 1990-2009.
In terms of FDI inflow, the UAE came second only to Saudi
Arabia, attracting $73.4 billion during 1990-2009, according to UNCTAD. FDI
flow into Saudi Arabia totaled $147.1 billion during that period while Egypt
was ranked third, with FDI inflow of $66.7 billion, it added.
Morocco ranked fourth, attracting around $40.7 billion,
followed by Lebanon and Tunisia, with $32.08 billion and $31.8 billion
respectively, according to the report.
UNCTAD figures revealed that the bulk of the UAE’s FDI
targeted neighboring countries, with $62.4 billion invested in the region.
Saudi Arabia accounted for nearly 70 per cent of the UAE’s investments while
Egypt, Morocco, Lebanon, Libya and Tunisia were also major recipients.
However, the UAE received $13.1 billion from fellow Arab
nations, according to the UNCTAD report.
Qatar, whose economy was forecast by BoA Merrill Lynch to be
the region's top performer in the next two years, overtook Kuwait for the first
time in FDI outflow at $16.03 billion. The GDP of world's largest exporter of
liquefied natural gas (LNG) is forecast to grow 11.3 percent and 9.6 percent in
2010 and 2011 respectively.
Oman is forecast to be the second-best performing country in
2010 with 4.6 percent GDP growth, improving to 4.8 percent growth next year,
according to BoA Merrill Lynch.
Kuwait's economy, which shrank 2.2 percent last year, is
expected to rebound with 2.5 percent and 3.1 percent GDP growth in 2010 in 2011
respectively. Bahrain is expected to see 2.4 and 2.8 percent growth in next two
years, added the report.
In terms of capital exports, Kuwait pumped nearly $16.01
billion, followed by Libya with around $11.9 billion, according to the UNCTAD
report.
The report revealed that the United States was the top
capital exporter in the world, channeling around $4.3 trillion, more than a
fifth of the world’s total FDI outflow of nearly $18.9 trillion.
France stood second with $1.71 trillion, Britain third with
$1.65 trillion, and Germany fourth with $1.37 trillion. China also emerged as a
giant capital exporter with $1.36 trillion, the report added.
