Data from greenfield investment monitor fDi Markets shows a steep decline in the level of FDI into the Middle East in the first six months of 2012, compared to the same period in previous years.
Comparing 2012 data with corresponding figures for 2011 shows that the number of FDI projects has decreased by 28%, while the level of capital investment has decreased by 62% and the number of jobs created by FDI has fallen by 55%. With investment into the Middle East historically tending to decrease during the month of Ramadan – which will take place in the second half of the year in 2012 – it is unlikely that FDI into the region will make a recovery in the next six months.
Prior to 2012, crossborder investment into Middle East had remained relatively stable even in the wake of the 2008 global financial crisis. However, the decline witnessed in the Middle East in the first six months of 2012 is reflective of a global trend. Global FDI project numbers are down 23% in the first six months of 2012 compared to the same period in 2011, while the level of capital investment has decreased by 47% and the number of jobs created through FDI has fallen by 44%.