UN-ESCWA Executive Secretary, Bader Omar AlDafa, said on Thursday 7 August 2008 that Arab states have achieved uneven results in 2006 in globalization. "Foreign Direct Investment (FDI) into Arab states has reached a record score of USD$62 billion and an average growth of 36 percent. This growth reflects the efforts exerted by most Arab states to lure FDI," AlDafa said during a press conference held at the UN-House on the occasion of launching the "Annual Review of Developments in Globalization and Regional Integration in Arab countries 2007". The event was held in the presence and under the patronage of Lebanese Minister of Economy and Trade Mohammed Safadi.
In his speech, AlDafa said that the share of Arab countries in international trade has witnessed a gradual increase in 2006 to approximately 4 percent. Speaking of the tourism sector, he added that it only represents 4.8 percent of the international average, which represents a humble figure in comparison with the touristic capabilities that Arab countries possess. "In Lebanon, data indicates that the number of tourists in 2006 reached 1,360,000, which means that this sector has much to offer," AlDafa was quoted as saying. Regarding intra-Arab tourism, political and security instability in the Arab region led tourists to favor countries of Europe and eastern Asia, the fact that led to the decrease of intra-Arab tourism.
According to AlDafa, Arab air transport continued to record high growth in 2006 and 2007 compared with the international average. He added that the Gulf region in particular has attracted major investments that led to the increase of fleet size of airline firms and to the expansion of airports.
For his part, Minister Safadi said that UN-ESCWA is making initiatives to connect Arab countries in the sectors of transport, trade and others. He expressed hope in the establishment of an Arab fund to support the energy sector. "The concept of establishing an Arab fund to support energy must be linked to a comprehensive development plan," Safadi said. He added that if the variance in incomes in Arab states continues, then it shall represent a hindrance to economic integration. "The variation in energy costs among energy consuming and energy producing Arab countries hinders economic and social development," Safadi said.
Nabil Safwat, Officer-in-Charge of the Economic Development and Globalization Division (EDGD) at UN-ESCWA presented the contents of the report. Safwat said that the share of the UN-ESCWA region in the average FDI have reached 3.75 percent in 2006, while it represented 1.99 percent of the average Gross Domestic Product (GDP). Safwat referred to the share of Arab world in international economy, international trade negotiations and trade facilitation, as well as Arab regional integration.
The "Annual Review of Developments in Globalization and Regional Integration in Arab countries 2007" recommended that investment policies in Arab states be reviewed, and considered it was important to establish policies that link local businesses to FDI firms. Similarly, it called for coordinating Arab state positions in the World Trade Organization’s (WTO) talks. UN-ESCWA had started preparing these annual reviews in 2002.
