 |
 |
Arab Investment Climate 2006 report. Syria’s growth rate 3.6%, inflation at 2.7% [1]The Arab Establishment for Investment Guarantee has recently issued a report on the status of investments in Arab countries in 2006.
The first part of the report focuses on the components of the investment climate in Arab countries, while the second part is on economic and investment developments and global insurance industry as well as activities carried out by the Establishment. Click more…
The Arab Establishment for Investment Guarantee has recently issued a report on the status of investments in Arab countries in 2006.
The first part of the report focuses on the components of the investment climate in Arab countries, while the second part is on economic and investment developments and global insurance industry as well as activities carried out by the Establishment
Syria’s trade balance deficit turned into surplus
The indicator of foreign Arab trade for the year 2006 showed that foreign trade of 17 Arab countries reached about $6.1012 bln last year; $2.660 bln exports and $352 bln imports. Syria was the only Arab country the deficit of its trade balance turned into surplus: from $141.4 mln deficit in 2005 to $885 mln surplus in 2006.
The report estimates the value of last year’s inter-Arab trade at $1.94 bln constituting 2.9% of total foreign Arab trade.
Macroeconomic developments
According to the report, Syria was among 12 Arab countries in 2006, where growth rates exceeded the global rate of 4.5%. Syria came in the ninth rank with a 3.6% growth rate, while Mauritania topped the list with 7.11%, UAE 7.10%, and Sudan 3.10%.
Syria was listed among the countries that realized an increase in the development growth rate in 2006, according to the report.
Concerning internal balance, Syria came next to Morocco in achieving a reduction in the budget deficit, as it went down from 08.5% in 2005 to 30.3% in 2006.
On external balance, the report says 15 Arab countries out of 19 continued to achieve surplus in current account and Syria came in the 10th rank where the surplus rate increased from 07.1% in 2005 to 38.2% in 2006.
Inflation exceeds 10% in four countries
The inflation rate hiked last year in 15 Arab countries with rates ranging between less than 1% to 33.20.
Syria was among these four Arab countries that witnessed last year inflation rates exceeded 10%, they are: Iraq with 80.64%, Yemen 40.18%, Qatar 80.11%, Syria 03.10%.
Regarding rate exchange, the report says most rate exchange of Arab local currencies were stable against the US$, whereas the exchange rate of the Syrian pound soared by 23.3%.
Investment inflows
According to the report, Syria was not listed among nine Arab countries that hosted investment activities, although Syria came the fourth at Arab level in attracting investments into the country in 2005.
However, the absence of Syria’s name is due to the Arab Establishment for Investment Guarantee was not provided with the relevant data or the value of last years. Arab investments in Syria were less than $350 mln, which is the value of investments in Morocco (the last country in the list).
Saudi Arabia was number 1 with about $837.4 bln (5.27% of total inter-Arab investment licenses in 2006); Egypt was number 2 with $265.3 bln, and Tunisia with $366.2 bln.
Nevertheless, Syria was among the Arab countries that exported inter-Arab investments last year. The UAE topped the list with $563.7 bln at 43% of total investments, Syria came in the 5th rank with about $783 mln with a 4% share of total six countries constituted 3.93% of total exported Arab investments.
The report outlined in details the status of foreign direct (FDI) investment in Arab countries in 2005, where Syria at 10th out of 18 Arab countries regarding investment inflows. "Investments hiked from $275 mln in 2004 to $500 mln, and Syria was in the 12th rank concerning total accumulated FDI inflows to Arab countries over the period 1996 to 2005 with $9.2 bln (5.2% of total accumulation amounted at $5.115 bln). |