Middle East business services continues downward trend
The Middle East’s business services sector is showing no signs of improvement, as figures from 2011 onwards illustrate. Cara Lyttle reports.
Greenfield investment monitor www.fdimarkets.com shows that between January 2011 and October 2016, total investment in the business services sector across the Middle East has continued to decline.
The number of business services projects into the region has decreased significantly, from 193 in 2011 to 135 in 2013, and 84 in 2015, the lowest figure recorded since 2006. The number of investing companies and jobs created also dropped between 2011 and 2015.
Data shows that in 2011, 163 individual companies invested in business services projects in the Middle East with 6191 new jobs created, which declined to 116 companies and 4207 new jobs in 2013.
In 2015 the number of investing companies in the Middle East had fallen to 76, with 1679 new jobs created, marking a decrease of 15.55% and 34.34% respectively from the previous year. Between 2011 and 2016, the United Arab Emirates attracted the lion’s share of investment in the region with 751 FDI announcements, followed by Qatar with 163 and Saudi Arabia with 146 projects.
The primary investing countries in the Middle East between 2011 and 2016 were the UK, the US, France and the UAE itself. The downward trend recorded by www.fdimarkets.com indicates that the slump the Middle East is experiencing in business services investments is set to continue for the reminder of 2016 with data recorded for Q1-Q3 showing the region attracted 49 investments, a drop of 19.67% from the same time period in 2015.
Despite the decline in investments during 2016, the Middle East has experienced an increase in both capex and job creation, primarily due to a $1.2bn investment by Valoriza Agua, a subsidiary of Spain-based Sacyr, which will establish a new seawater desalination plant in Sohar, Oman by 2018.
The fDi Report 2016
Most popular content
- fDi American Cities of the Future 2017/18 – New York triumphs again
- fDi’s Global Cities of the Future 2016/17 – the winners
- fDi American Cities of the Future 2017/18 – FDI Strategy winners
- The first resort: how FDI can help the Maldives to preserve its paradise
- Maldives pushes sustainability at home and abroad
Crossborder investment monitor
fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.
Corporate location benchmarking tool
fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.
fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.Find out more.