INTERNATIONAL Middle East: More projects, higher value, fewer jobs, finds Ernst & Young
18 October 2012
In 2011, foreign direct investment (FDI) in the Middle East resulted in more projects with a higher overall value than in 2010, but significantly fewer jobs.
Thu, 18 Oct 2012
In 2011, foreign direct investment (FDI) in the Middle East resulted in more projects with a higher overall value than in 2010, but significantly fewer jobs.
This is according to professional services firm Ernst & Young’s 2012 Middle East attractiveness survey released this week, which shows 928 FDI projects (up 7.8%) with a total value of $63.8bn (£39.5bn, up 2.2%) in 2011, creating 95,500 jobs, a decline of 9.9% on 2010.The number of new projects is slightly lower than 2008 and 2009 levels, but still nearly more than double the 2007 figure of 584. Jobs created, however, are on par with the 94,300 created in 2007, and far below a high of 261,400 jobs in 2008.
With average size of investment declining, Ernst & Young suggests that “this can be attributed to the reduced investor interest in large projects due to the uncertain economic environment, not only in the Middle East, but globally as well”.
The real estate, hospitality and construction sector has seen the highest number of FDI-generated jobs in the period 2003-08. Energy saw the greatest capital investment, while 79% of projects and 65% of jobs have also come in the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
In 2011, foreign direct investment (FDI) in the Middle East resulted in more projects with a higher overall value than in 2010, but significantly fewer jobs.
This is according to professional services firm Ernst & Young’s 2012 Middle East attractiveness survey released this week, which shows 928 FDI projects (up 7.8%) with a total value of $63.8bn (£39.5bn, up 2.2%) in 2011, creating 95,500 jobs, a decline of 9.9% on 2010.The number of new projects is slightly lower than 2008 and 2009 levels, but still nearly more than double the 2007 figure of 584. Jobs created, however, are on par with the 94,300 created in 2007, and far below a high of 261,400 jobs in 2008.
With average size of investment declining, Ernst & Young suggests that “this can be attributed to the reduced investor interest in large projects due to the uncertain economic environment, not only in the Middle East, but globally as well”.
The real estate, hospitality and construction sector has seen the highest number of FDI-generated jobs in the period 2003-08. Energy saw the greatest capital investment, while 79% of projects and 65% of jobs have also come in the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
