At the end of 2013, the European Union (EU) held Foreign Direct Investment (FDI) stocks of 54.1 billion euro ($61b) in the Persian Gulf Arab countries including Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates and Yemen whereas Persian Gulf FDI in the EU amounted to 63 billion euro ($71b).
EU FDI in the rest of the world amounted to 4,900 billion euro while stocks held by the rest of the world in the EU amounted to 3,778 billion euro. These figures were released Wednesday, by Eurostat, the EU statistical office, Kuna reported.
The United States, represented the main partner of the EU for FDI. At the end of 2013, the United States (34 percent of total stocks held by the EU in the rest of the world) was the leading location of EU FDI stocks, followed by Switzerland (14 percent), Brazil (6 percent) and Canada (5 percent).
The United States was also by far the main investor in the EU (1, 652b euro or 44 percent of total FDI stocks held by the rest of the world in the EU), ahead of Switzerland (431b or 11 percent).
Together, these two countries accounted for more than half of FDI stocks held by the rest of the world in the EU at the end of 2013.
Major Stakes
Qatar is considering buying major stakes in investment banks in Europe. Negotiations are underway with seven banks suffering from accumulated financial crises due to economic recession in Europe, reported Al Arabiya News.
Qatari delegations are leading broad negotiations to widen their investment portfolio in Luxembourg, in order to diversify their income generating investments, the report said.
Widening of investments in the foreign markets by Qatar’s investment authority is part of Qatar’s strategy to diversify the sources of income, away from gas and fuel sectors, which contribute 55 percent of Gross Domestic Product (GDP). Qatar Holding invested its budget surplus in the past two years in foreign lucrative projects, which sets a record for the investments in Europe.
The global economic crisis, which hit the United States and the European Union and other industrialized countries, contributed in creating many investment opportunities that fit with the aspirations of countries aiming at long term investments, such as Qatar’s investments in real estate, foreign companies, manufacturing plants, banks and even fashion houses.
