Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times

This report explores the effect of political risk on foreign direct investment (FDI) flows to countries in the Middle East and North Africa. FDI flows dominated capital flows to MENA in the period since the early 2000s and the drop in FDI has been an important component of the economic decline since...

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Main Author:	World Bank
Format:	Publication
Language:	en_US
Published:	Washington, DC 2014
Subjects:	Arab world foreign direct investment FDI GCC Gulf Cooperation Council macroeconomic outlook political instability political risk resource dependence growth projections greenfield FDI
Online Access:	http://hdl.handle.net/10986/16577

id	okr-10986-16577
recordtype	oai_dc
spelling	okr-10986-165772021-04-23T14:03:31Z Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times World Bank Arab world foreign direct investment FDI GCC Gulf Cooperation Council macroeconomic outlook political instability political risk resource dependence growth projections greenfield FDI This report explores the effect of political risk on foreign direct investment (FDI) flows to countries in the Middle East and North Africa. FDI flows dominated capital flows to MENA in the period since the early 2000s and the drop in FDI has been an important component of the economic decline since 2010. The report shows that political turbulence has affected not only the level of FDI flows to the region, but also its composition. It has skewed greenfield FDI, which is the major mode of entry into MENA, towards resource activities that create the least jobs and the non-tradable sectors. At the same time, political shocks have discouraged the high quality greenfield FDI in non-resource tradable manufacturing and services needed for export upgrading and diversification. By hurting these efficiency-seeking investments, shocks to political stability entrench resource dependence and exacerbate the clustering of FDI in the extractive industries and nontradable sectors – a problem associated with the weak business climate and political capture that predate the Arab Spring. Special focus will be needed on reforms that improve competition, transparency, and accountability. 2014-01-17T16:59:37Z 2014-01-17T16:59:37Z 2013-10 978-1-4648-0114-3 10.1596/978-1-4648-0114-3 http://hdl.handle.net/10986/16577 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Publications & Research :: Publication Middle East and North Africa North Africa Middle East
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Arab world foreign direct investment FDI GCC Gulf Cooperation Council macroeconomic outlook political instability political risk resource dependence growth projections greenfield FDI
spellingShingle	Arab world foreign direct investment FDI GCC Gulf Cooperation Council macroeconomic outlook political instability political risk resource dependence growth projections greenfield FDI World Bank Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
geographic_facet	Middle East and North Africa North Africa Middle East
description	This report explores the effect of political risk on foreign direct investment (FDI) flows to countries in the Middle East and North Africa. FDI flows dominated capital flows to MENA in the period since the early 2000s and the drop in FDI has been an important component of the economic decline since 2010. The report shows that political turbulence has affected not only the level of FDI flows to the region, but also its composition. It has skewed greenfield FDI, which is the major mode of entry into MENA, towards resource activities that create the least jobs and the non-tradable sectors. At the same time, political shocks have discouraged the high quality greenfield FDI in non-resource tradable manufacturing and services needed for export upgrading and diversification. By hurting these efficiency-seeking investments, shocks to political stability entrench resource dependence and exacerbate the clustering of FDI in the extractive industries and nontradable sectors – a problem associated with the weak business climate and political capture that predate the Arab Spring. Special focus will be needed on reforms that improve competition, transparency, and accountability.
format	Publications & Research :: Publication
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
title_short	Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
title_full	Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
title_fullStr	Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
title_full_unstemmed	Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times
title_sort	middle east and north africa economic developments and prospects, october 2013 : investing in turbolent times
publisher	Washington, DC
publishDate	2014
url	http://hdl.handle.net/10986/16577
_version_	1764434237762568192

Middle East and North Africa Economic Developments and Prospects, October 2013 : Investing in Turbolent Times

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