Foreign investment in Middle East much lower than in Far East

Foreign direct investments in Western Asia are lagging behind most countries of the world, the Daily Star quoted a United Nations report as saying. The 1999 World Investment Report, released by the Beirut-based UN Economic and Social Commission for Western Asia (ESCWA), said foreign direct investment in the Arab states and Turkey in 1998 stood at $ 4.5 bn, representing only 0.7 % of the world total.
Foreign investment in the Middle East was much lower than in South Korea and Malaysia, each of which drew more than $ 25 bn. China received $ 45 bn and $ 29 bn went to Brazil, the report said. Foreign companies invested $ 2.4 bn in Saudi Arabia, representing 52.4 % of all investments in the Arab states. Most of these investments went to oil-related products.
Foreign investments in Lebanon stood at $ 230 mm in 1998 compared with $ 64 mm in 1996. Foreign companies and individuals have more than $ 500 mm in fixed assets in Lebanon, mostly held in properties. Most foreign investments in Lebanon wentinto real estate development such as hotels and tourist projects.
Zaki Fattah, chief economist at ESCWA, said that Arab countries must improve their image by passing new investment laws, providing a proper investment climate, building infrastructure, improving transparency, combating administrative corruption and training the local labour force.