Investment summit to act as match-maker between global investors and regional projects

The exhibition will seek to channel some of the estimated US$735 billion in Foreign Direct Investment (FDI) that flows around the globe, towards this region - as also encourage local savings and Arab funds abroad into regional investment projects.

Presently, the Arab world gets less than 1 per cent of global FDI flows, according to the World Investment Report 2002.

"Through the International Investment Summit, we have declared our resolve that the less than 1 per cent in FDI that flows into the Arab world is not enough," said Salem bin Dasmal, Deputy Director General of the Dubai Development and investment Authority (DDIA).

"And, through the investment exhibition, we are taking practical steps to present actual investment opportunities which would divert and canalise investments into our economies," he pointed out.

"While academics, analysts, heads of investment promotion bodies, economists and financiers discuss in theory the FDI flows at the International Investment Summit, the exhibition will provide the actual physical opportunities for global, regional and local investors and entrepreneurs to meet and network with seekers of investment," he said.

The exhibition will showcase strategic investment opportunities in the region, like projects in tourism; real estate, entertainment sectors etc. as also provide an insight into the regional privatisation activity, especially in Saudi Arabia.

Repatriating US$1 trillion in Arab funds
Bin Dasmal pointed to estimates that put a figure of US$1,000 billion in Arab funds alone that are invested overseas.

"The aim - through the exhibition - is not only to bring these funds back to where they rightly belong, but to also present the Arab world as a lucrative investment opportunity to non-Arab investors," bin Dasmal said.

He pointed out that the large size of the overseas Arab funds indicates the high savings potential of the Arab world.

"These savings need to be canalised into gainful employment to boost revenue-generating economic activity. At this exhibition we would be presenting exactly such opportunities," bin Dasmal said.

It is estimated that up to $300 billion in Arab funds has already left the United States markets since the events of September 11, 2001.

"Whoever presents opportunities for gainful employment of those funds will attract them. We aim to compete aggressively for these funds and other FDI flows," bin Dasmal said.

Presenting readymade opportunities
Encouraging FDI flows, repatriation of Arab funds invested abroad and canalising fresh local investment will be done through the exhibition, which will showcase specific pioneering and internationally relevant investment opportunities in the region at a pan-sectoral and pan-industrial level.

The Arab world has taken practical steps in recent years to open up its economies to foreign investment. There have been rafts of recent legislations rapidly integrating regional economies into the global village.

FDI is being actively sought after. Privatisation is gathering speed with foreign firms getting invited into major power, water, desalination, telecommunications and energy projects.

Real estate is being opened up to private development - and even ownership in certain cases. Mega industrial projects are being offered to investors all over the region - especially in the field of energy and natural gas.

These opportunities will be highlighted during the exhibition.

Geographical diversification
Investment opportunities that will be made available to potential investors at the exhibition will stretch from the North Africa, across the Levant to the edge of the Arabian Gulf.

"The opportunity for diversification and consequent minimisation of risk is massive not only in terms of the many kinds of opportunities available in different sectors, but also through geographical diversification, bin Dasmal said.

"This vast region can no longer be ignored by the rest of the world in terms of economics or investment opportunities. This area represents a combined Gross Domestic Product (GDP) of US$2.4 trillion a year," he pointed out.

North African markets of Morocco and Egypt present a bridge between Africa and the Middle East to Europe. They have opened up to investment in industry, mining, fisheries, real estate, tourism, handicrafts and exports.

Levant markets of Jordan and Lebanon are targeting investment in tourism and IT and telecommunications, tourism and real estate development.

The Gulf Cooperation Council (GCC) countries have been opening up. In the UAE, the public and private investment is expected to rise to US$16.4 billion, of which 60 per cent is from the private sector.

Qatar's economy has been the fastest growing in the region with 7.2 per cent GDP growth fuelled, in the main, by investments in its huge natural gas resources.

Saudi Arabia has opened 20 state controlled or dominated sectors, including telecommunications, water desalination, air transport and airport services, construction and management of highways, seaport services and local refineries. It plans to sell government stakes in banks and industrial units.

Bahrain is recognised as among the most economically free countries. Kuwait has allowed foreign investment in its oil sector. Its US$7 billion Kuwait project for northern oilfields development has pre-qualified seven global oil majors. Oman too, has progressive investor-friendly policies and has kept specific projects for 100 per cent foreign ownership.

The exhibition will highlight all these opportunities and reemphasise all these points to delegates, visitors, investors and entrepreneurs attending the International Investment Summit.

Participants at the exhibition will include:
•Investment authorities and promotion boards,
•Multinational corporations,
•Major international and regional property developers,
•International and regional non-governmental organisations (NGOs),
•Free Zone representatives,
•Financial institutions, and
•Representatives of other large regional investment opportunities.

"In order for the region to attract investment, there must be a unified strategy and innovation. This exhibition will help in the development of this confederated vision. It will help key stakeholders to adopt the right mindset for future regional prosperity. It will be a platform for investment innovation," bin Dasmal pointed out.