The foreign direct investment (FDI) by the UAE in Saudi Arabia stood at nearly $5.8 billion last year, the largest FDI flow by an Arab country, the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC), said. The UAE's FDI flow into Saudi Arabia accounted for nearly 45 percent of the total capital of nearly $12.9 billion received by the kingdom from other Arab countries in 2008, said IAIGC, which groups most Arab countries. The UAE investments in Arab countries last year also accounted for more than a third of the total inter-Arab FDI of nearly $34 billion. Total capital funneled by the UAE into its fellow members in the Cairo-based Arab League stood at about $10.7 billion to emerge as the largest Arab capital exporter to other League members. The capital was more than double the total FDI channeled by the UAE into other Arab countries last year and nearly 45 percent of the total investments received by Saudi Arabia from other Arab League members. Other key recipients of UAE capital last year were Libya, which got about $1.94bn, Lebanon, which received nearly $1.1 billion, Egypt, with about $748 million and Morocco, which attracted nearly $620 million. Syria and Tunisia got $211.9 million and $109.6 million, respectively. A breakdown of investment figures showed Kuwait was the second-largest regional capital exporter to other Arab states, investing about $6.59 billion, followed by Egypt, which invested nearly $3.5 billion, Oman, with about $2.6 billion, Lebanon with nearly $2.2 billion and Saudi Arabia, with $2.1 billion. Dubai-based Emaar and Etisalat telecommunication operator are the largest investors in the Kingdom. During 2004-2007, the UAE was the second largest foreign investor in Saudi Arabia after Japan. However, with the completion of the Economic City project, it is expected to lead the pack.
