Riyadh, (Business News Report)|| Foreign direct investment in the Arab region increased by 37% during the past year 2021, compared to the same investments for the previous year.
The number of foreign direct investment projects in the Arab region rose to 862, at a cost of $32.8 billion.
Western Europe came at the forefront of investors in the region for 2021 in terms of the investment cost of projects, led by the United Kingdom, which contributed about 7.5% of the cost.
Saudi Arabia was the most important destination for foreign projects in the region in terms of investment cost of $9.3 billion.
According to Reuters, the Arab Corporation for Investment and Export Credit Guarantee (Dhaman) said in a statement on the occasion of the launch of its annual report on the investment climate in the Arab countries for the year 2022 that the position of the Arab countries in the majority of international indicators related to the investment climate improved in 2021.
The statement indicated that the total number of foreign direct investment projects in the Arab region rose during the period between 2003 and 2021 to 14,443 projects at an investment cost estimated at $1.3 trillion.
The statement stated that these projects provided nearly two million job opportunities.
Abdullah Ahmed Al-Sabeeh, Director General of the Corporation, expected continued growth in 2022, especially after the value of foreign projects imported to the region increased by 86% to reach $21 billion during the first third of 2022, compared to the same period in 2021, especially if the negative repercussions of the Russian-Ukrainian war.
The gross domestic product (GDP) at current prices of Arab countries increased by 17% during the past year, to reach about $2.81 trillion (representing 2.92% of the global economy), compared to $2.39 trillion in 2020 (representing 2.83% of the global economy).
Saudi Arabia’s share of the Arab economy in 2021 is about 29.7% (it was 29.3% in 2020), as the largest Arab economy is about $833.5 billion (3.13 trillion riyals). The report includes 20 Arab countries.
The size of the Arab economy in 2021 surpasses the eighth largest economy in the world, the Italian economy, with a GDP of $2.1 trillion.
Below comes the seventh largest economy in the world, which is the French economy, with an output of $2.94 trillion.
Three countries accounted for 58.6% of the Arab economy in 2021: Saudi Arabia, with a domestic output of $833.5 billion (29.7%), the UAE, the second largest Arab economy, with $410 billion (14.6% of the total), and Egypt, the third largest Arab economy, with an output of 402.8 $1 billion (14.3% of the total).