reviewing GCC economic growth and FDI

The GCC countries are actively carrying out policies to bring in foreign investments.

The volatility regarding the currency prices here is one thing investors just take seriously because the vagaries of exchange price fluctuations may have a direct impact on their profitability. The currencies of gulf counties have all been fixed to the United States currency from the late 1990s and early 2000s, and investors such Farhad Azima in Ras Al Khaimah and Oussama el-Omari in Ras Al Khaimah would likely view the pegged exchange price being an important attraction for the inflow of FDI into the region as investors don't need to be concerned about time and money spent manging the forex uncertainty. Another important benefit that the gulf has is its geographical location, situated at the crossroads of Europe, Asia, and Africa, the region functions as a gateway to the rapidly raising Middle East market.

To look at the suitability regarding the Arabian Gulf being a destination for international direct investment, one must evaluate whether or not the Arab gulf countries provide the necessary and sufficient conditions to encourage FDIs. One of many important variables is governmental security. Just how do we evaluate a country or even a region's security? Political stability depends to a significant degree on the content of citizens. People of GCC countries have a great amount of opportunities to aid them attain their dreams and convert them into realities, which makes most of them content and grateful. Additionally, worldwide indicators of political stability reveal that there's been no major political unrest in the area, plus the occurrence of such a scenario is extremely unlikely given the strong political determination as well as the prudence of the leadership in these counties specially in dealing with political crises. Furthermore, high rates of misconduct can be extremely harmful to foreign investments as investors dread hazards like the blockages of fund transfers and expropriations. Nevertheless, in terms of Gulf, specialists in a study that compared 200 counties classified the gulf countries being a low hazard in both categories. Certainly, Ramy Jallad in Ras Al Khaimah, a prominent investor would probably testify that a few corruption indexes make sure the region is increasing year by year in reducing corruption.

Nations around the world implement various schemes and enact legislations to attract foreign direct investments. Some nations for instance the GCC countries are progressively embracing pliable legislation, while some have lower labour expenses as their comparative advantage. The many benefits of FDI are, of course, shared, as if the international firm discovers reduced labour costs, it will likely be in a position to minimise costs. In addition, if the host country can grant better tariffs and savings, the business could diversify its markets through a subsidiary. On the other hand, the country should be able to grow its economy, develop human capital, increase job opportunities, and provide access to expertise, technology, and skills. Thus, economists argue, that oftentimes, FDI has resulted in efficiency by transmitting technology and know-how to the host country. However, investors look at a many aspects before carefully deciding to invest in new market, but among the list of significant variables which they consider determinants of investment decisions are position on the map, exchange fluctuations, governmental stability and government policies.