Bahraini.TV

The tangible results of Bahrain’s recent initiatives aimed at enhancing the economy are illustrated in the almost tripling of Foreign Direct Investment (FDI) to the kingdom last year.

This was revealed yesterday by Economic Development Board (EDB) chief executive Shaikh Mohammed bin Essa Al Khalifa, following the publication of an international report by the United Nations Conference on Trade and Development (UNCTAD).

Bahrain’s FDI inflow increased substantially last year to reach $2.915 billion, almost triple its 2005 size of $1.049bn, according to the report.

World Investment Report 2007 – Transnational Corporations, Extractive Industries and Development, was released by the Economic Development Board (EDB) on behalf of UNCTAD.

The report notes that the increased inflows to the kingdom last year were driven by substantial international investment in the real estate and the financial sectors.

The increased inflows led to Bahrain’s economy being ranked 11th in the performance category globally, up from 23rd in 2005 report.

Bahrain was placed at 32nd in the ‘potential’ category, unchanged from 2005.

Shaikh Mohammed said this investment inflow is an evidence of the healthy economy of Bahrain and highlights the confidence of international investors in the kingdom’s strong and developed infrastructure.

“We are pleased to see the tangible results of Bahrain’s recent initiatives aimed at enhancing our economy and making us a preferred destination for international investors,” he said.

“While FDI inflows to some countries in the region have been dropping, we see a huge leap for foreign investments to Bahrain. This is a clear vote of investor confidence in our economy.”

The report ranks 141 countries across the world and provides transnational corporations and their subsidiaries with potential and performance rankings of economies.

It also provides international governments with clear forecasts of emerging sectors and global trends over the short term.

Figures from the report revealed that last year, world foreign direct investment reached $1.306 trillion, an increase of 38pc over 2005 figures.

FDI growth occurred in all three groups of global economies: developed, developing and transitional economies (southeast Europe and Commonwealth).

The 2006 report noted a new trend emerging in the geographic patterns of greater south-south FDI inflows between economies below the equator.

FDI inflows into West Asia – which includes Bahrain and the Middle East – reached $60bn last year, a surge of almost 44pc.

Outflows from the region totaled $14bn, and were targeted at mainly developed countries, specifically the UK, Canada, and the US, as well as Pakistan. Outflows from the region largely went into oil, gas and related industries and the telecommunication sector.