The Arab trading bloc

Based on recently released figures, Arab investors have been paying more attention to business in neighboring countries, while looking less at “traditional” Western markets. The size of inter-Arab direct investment inflows grew 64 percent in 2008, with Saudi Arabia receiving the largest share of investments and the United Arab Emirates being the top investor in other Arab states, according to the Investment Climate in Arab Countries 2008 report. The report, released by the Kuwait-based public Arab Investment and Export Credit Guarantee Corporation (better known as Dhaman), notes that the total volume of inter-Arab investments reached $34 billion in 2008, up 64 percent from 2007. This is a remarkable jump, and may have a lot to do with the sorry state of Western economies last year, which put off Arab investors and made them look to less risky business closer to home. Saudi Arabia received the largest share with 38 percent