lundi 4 février 2013

Gulf states possess a wealth of investment opportunities



The high oil prices in 2011 and 2012 had a significant positive impact on the oil producing countries, particularly those in the Gulf region, where these countries have achieved budget surpluses in their budgets close to $ 186 billion.

From this point, the oil-producing countries in the Gulf should benefit financial surpluses achieved during the last three years in the diversification of income sources and investments in projects to support the process of economic development. They are able to bring more foreign investment in supporting infrastructure projects that contribute to perform more the labor and increase the gross domestic product.
These countries can benefit from the case of a slowdown in the global economy and its transformation into an investment opportunity. The UK energy sector, for example, has been suffering for months with rising costs, which prompted the British government to seek alternative sources of energy. This can be a great opportunity for the Gulf countries, which invest in other benefits of energy in the long term to avoid the risk of a decline in world prices of energy.

And following the rise in oil prices, the Gulf countries benefit more funds to invest abroad more than what can be spent on the acquisition of businesses and investments, and thus began a portion of funds Gulf liquid to flow to emerging markets. Their investment fund is particularly active in recent years. They invest around the world and particularly in France.
 Flows of foreign direct investment increased from Arab countries, mainly the Gulf from 24% to 24.6 billion dollars last year.

Many motivations behind these investment flows of Gulf in emerging markets: is that business growth of GCC exceeds the capacity of their local markets. So it has to go outside so it can continue to grow. Qatar, for example, has 20 banks.
In addition, several Gulf companies believes that the skills and backgrounds confer a competitive advantage by capturing some of the opportunities in emerging markets.
So,  foreign direct investment knows importance following its ability to contribute to the resolution of national economic challenges such as infrastructure development and promote competition in the local market and find new jobs for citizens and the development of legislation.

Rawdha Dridi

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