Arab FDI to China: Slowly but surely

Regional Views
Arab FDI to China

Florence Eid-Oakden, Ph.D, Chief Economist 

Charlene Rahall, Analyst

Although the United States and European Union have been the main destinations of MENA countries’ FDI, the latter have been trying to tap into Asia as well. The financial crisis of 2007-2008, the 2011 Arab Spring and the 2014 oil price drop, however, halted progress sharply. But post-crisis rebounds in FDI lead us to believe that in the absence of upheavals, Arab money to China will increase.

 We tackle the following questions:

  • How much Arab FDI flowed into the Chinese economy from 2003 and how was it impacted during the 2008 global financial crisis?
  • How did the 2011 upheavals in the MENA region and the 2014 oil price drop affect FDI flows from Arab countries to China? Which countries where more resilient than others?

  • What makes China an attractive destination for GCC investments?

The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.

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