FDI flow strong: UNCTAD report

Manama : Bahrain has been a standout performer in the region when it comes to attracting Foreign Direct Investment (FDI) in recent years, according to researchers.

FDI to Bahrain has been pouring at an impressive rate in recent years, according to World Investment report released by United Nations Conference on Trade and Development (UNCTAD). According to the report Bahrain’s FDI stock per capita has reached $20,000 this year. 

When it comes to attracting FDI Bahrain, Lebanon, the United Arab Emirates and Saudi Arabia are the standout performers of the region, the report stated.

“Some West Asian economies, such as Bahrain, Lebanon, the United Arab Emirates and Saudi Arabia, in that order, stand out as strong performers in attracting FDI,” the report noted. 

The report noted that allowing 100 per centexpat ownership of businesses in Bahrain has been one of the drivers of FDI growth in the Kingdom. Bahrain’s pro-activeness in business legislation was also mentioned in the report.

“Bahrain amended its Commercial Companies Law, allowing 100 per cent foreign ownership in health and social work, information and communications, mining and quarrying, among others. Bahrain opened the Investment Gateway Bahrain for business, allowing the purchase of land on Muharraq Island by foreign investors for commercial and light industrial use” the report stated, adding, “Bahrain introduced two specialized courts for commercial and investment disputes, aiming to ensure that disputes will be resolved quickly and fairly.”

However, globally there has been a decline with FDI dropping 2 per cent. “In 2016, global flows of foreign direct investment fell by about 2 per cent, to$1.75 trillion. Investment in developing countries declined even more, by 14 per cent, and flows to LDCs and structurally weak economies remain volatile and low. Although UNCTAD predicts a modest recovery of FDI flows in 2017–2018, they are expected to remain well below their 2007 peak. These developments are troublesome, especially considering the enormous investment needs associated with the Sustainable Development Goals, detailed in UNCTAD’s Action Plan for Investment in the SDGs. 

Progress on sustainable development – and lasting peace – requires more investment in basic infrastructure, energy, water and sanitation, climate change mitigation, health and education, as well as investment in productive capacity to generate jobs and income growth” António Guterres Secretary-General of the United Nations noted.