Direct foreign investment in Lebanon down to 3.9 billion dollars in 2011

BEIRUT, July 28 (Xinhua) -- Direct foreign investments in Lebanon are down to 3.9 billion U.S. dollars in 2011 from 4.95 billion in 2010, according to a statistical report of the World Bank.

The Investment Development Authority of Lebanon (IDAL) said the drop of direct foreign investment (DFI) is due to recession in the real estate market because of the security events in Syria and its negative repercussions on the various economic sectors of Lebanon, which drove the investors to more secure markets.

The DFI in Lebanon have developed between the years 2007-2010 to reach an average of 16 percent annually, but the real estate market was the most affected by the drop of the DFI in 2011 amidst the developments of the Arab turmoil, knowing that the Arab investors represent the highest share in DFI.

The report said the total DFI in the Arab World and North Africa and Middle East region reached 64 billion dollars in 2011 and Lebanon's share was 5.4 percent compared to 7.7 percent in 2010.

It added that Lebanon attracted a total of 3 billion dollars in 2011 and occupied the 5th rank in the region behind Iraq with 3.5 billion, Qatar 4 billion, United Arab Emirates 4 billion and Saudi Arabia with 29 billion. Enditem