1、1No of Type： Code of Unit：Level of confidentiality： StudentID：Shandong UniversityMasters thesisTopic:Analysis on FDI in Middle East Area and ChinaName of writer: KHALID HALAWANI ALSAIDSchool: School of EconomicsSpecialty : International Trade Mentor: Prof. Liu QinlingCooperating Mentor: 8May, 2012Or
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5、reproduction means.(Declassification of confidential papers should comply with this requirement)Students signature: Teachers Signature:Date: CONTENTSAbstract .391 Introduction .411.1 Background and Significance.411.2 Related Definitions.431.3 Logic and Contents.441.3.1 Logic.441.3.2 Contents.441.4 M
6、ethodology .461.5 Novelties and Defects.461.5.1 Novelties.461.5.2 Defects.472 Literature Review.482.1 Relations between International Trade and FDI .482.2 Causes of FDI.502.3 the Host Country Effects of FDI .513 FDI in the Middle East from China.553.1 the Overall Status .553.1.1 Region Flow .553.1.2
7、 Rising of Stock and Flow, Slightly Ups and Downs.573.2 Region Distribution .583.3 Industrial Distribution .623.3.1 Overall Industrial Distribution of Chinese FDI.623.3.2 Overall Industrial Distribution of FDI in the Middle East .653.4 Summary .714 FDI in China from the Middle East.734.1 Flow and Tr
8、end of Change.734.2 Region Distribution .744.3 Industrial Distribution .764.4 Summary .795 Conclusions and Suggestions .815.1 Conclusions .815.1.1 Smaller Amount,Lower Lever.815.1.2 Industrial Distribution is Uneven .835.1.3 Unbalanced Development of Direct Investment between China and the Middle Ea
9、st.835.2 Suggestions.845.2.1 Effectively Improve the Investment Environment, Attract more and more High Quality Foreign Capitals .845.2.2 Improve the Investment Nationality and Industrial Structure, Attract high-quality Investment.865.2.3 Strengthening Cooperation with developing countries, achievin
10、g win-win.87References .89Acknowledgements .93ABSTRACTIn recent years, countries have adopted various preferential measures to attract foreign direct investment (FDI), in order to promote the rapid development of the local economy and improvement of productivity. The Middle East Area is no exception
11、. The Middle East attracted foreign direct investment of 43.3 billion U.S dollars in 2006, compared with an increase of 25.5% over the same period last year. Because of the global financial crisis, FDI in the region got a heavy blow. For 11 consecutive years, the Chinese investment attraction was ra
12、nking first among the developing countries, and its competitiveness in international investments made the Middle East be threatened. In this context, FDI situation in the Middle East and relations between China and the Middle East are the focus of the governments and academics.In this paper, we use
13、the data (2003-2009) of the “World Investment Report“ and the “Bulletin of Chinas foreign investment“ on FDI in the region, from three aspects: the total flows of FDI from the region, regional and national flow and industrial distribution to have a comprehensive analysis of the Middle East. The resu
14、lts are as follows: FDI from China in this region are mainly located in Iran, Iraq, Saudi Arabia, UAE, and other seven countries. Judging from the industrial stock of FDI, by the end of 2009, FDI from China more than $100 million areas in the Middle East are Algeria, Saudi Arabia, Sudan, the United
15、Arab Emirates, Egypt and Iran. The investment more than five hundred million dollars are Algeria, Saudi Arabia and Sudan, accumulative total stock for 20.26 billion, whose ratio is 64.3%; Judging from the investment industry, by the end of 2009, Chinese foreign direct investment in the Middle East m
16、ostly involves oil and mineral resources development, manufacture, project contracting, etc.Through the research of Chinese FDI which came from the Middle East, the paper found: Saudi Arabia, the United Arab Emirates and Iran were the main regions which had direct investments in China. In addition,
17、the Asian countries still were the main areas, of which Kuwait, Jordan, Israel had a large proportion. African country Egypt was the main outflow kingdom of Chinese FDI.Finally, this thesis revealed the main conclusions, put forward some suggestions to improve the investment environments and policie
18、s, and then strengthen mutual cooperation.Key Words：FDI, Region, Industry, Stock, Flow.1 Introduction1.1 Background and SignificanceMiddle East countries are under the rule of imperialist colonial for a long period. So the existing economic structures inevitably have a strong colonial characteristic
19、, and with a strong dependency. Although this situation was improved later, but still has an impact. Now, except Israel and a few other countries in the Middle East, most countries industrial bases are weak, their industrial structures and product structures are similar, the complementariness is not
20、 strong. For example, in the 1980s, the inter-Arab investment was about $ 26 billions, while its foreign investment reached $ 760 billions, far more than the annual GDP of Arab countries.However, in recent years, because of its richness in oil and gas and other natural resources and vast consumer ma
21、rkets in the Middle East region, it has becomed the main chasing market of the international trade and investment. The United States, Spain, Japan, Canada and other countries are the main sources of FDI in the region. As China, India and other developing countries faster economies development, these
22、 developing countries investments in the region were also increased gradually.Arab Investment and Export Credit Guarantee Corporation recently release a report pointed that: the Direct Investment Growth rate of foreign companies in the Middle East and North Africa Areas will reach 15%. The report st
23、ressed that the expected growth rate of 15% mostly comes from the announced large-scale investment projects in the next few years, particularly the energy and infrastructure construction projects. Such as, many countries have announced resumption of the past interrupted or suspended oil and real est
24、ate projects. In addition, the spending of the Gulf Cooperation Council countries in infrastructures will reach $ 245 billions in the next 10 years (2011-2020); compared with the $ 170 billions in the previous 10 years (2000-2010), the increase rate will reach 44%.On the other hand, global increasin
25、g demands for oil will increase the regional oil revenues, and thus will have a positive impact on attracing investment flows. From the foreign investments and the composition of Profits, we all see that in the field of natural energies, particularly in natural gas and mining industries, the relevan
26、t investment will continue increasing. Many multinational corporations, especially oil companies, are planning to increase the investment in the Middle East and North Africa regions.The report also believes that another important factor for the foreign investments increasing in the Middle East and N
27、orth Africa is that most of the countries in the region provide a good environment for foreign companies to investment. At present, there are 16 countries put forward 38 reform programs to optimize the investment environment. A two-way investment between China and the Middle East was a little later.
28、 Although more than half of the Middle East countries have signed agreements with China to encourage and protect joint investments, provide a legal guarantee and give preferential terms for the investors from both sides, but the scale of two sides investments were still very small, mainly in fisheri
29、es, trade, construction, restaurant services and other fields. In the past two years, Chinese companies and enterprises in the Middle East countries have established many wholly-owned or joint-venture factories, mainly in the UAE, Saudi Arabia and other countries, many projects have achieved good ec
30、onomic sffects. The Middle East funds which China has used are mainly divided into two parts: government loans and direct investment. The Middle East countries whose investments in China developed much more rapidly are Saudi Arabia, Algeria, Sudan, United Arab Emirates, Iran, Israel and so on.Overal
31、l, from both the actual abilities of this regional foreign investments and the total amount of foreign investments which China has attracted, Chinese utilize of Middle East countries finance is out of proportion, the development of bilateral FDI between China and the Middle East countries have a goo
32、d prospect.The paper will analyse deeply the industry distribution and structure of the regional FDI after 1999, especially before and after the financial crisis, and comparise the status quo of mutual investments between China and the Middle East, in order to achieve a more comprehensive understand
33、ing of the status quo and stating the reasons.1.2 Related DefinitionsThe Middle East Area is a political and geographical concept, based on the most common academic division of the mainland, the region includes the West Asia and the North Africa which amount to 21 countries, Among these 13 countries
34、 are in the West Asia: Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar, Oman, Jordan, Syria, Lebanon, Iraq, Palestine, Israel, Yemen; 6 countries are in the North Africa: Egypt, Sudan, Morocco, Algeria, Tunisia, Libya, in addition also involves Iran and Turkey.The Foreign Direct Investmen
35、t (FDI) are economic activities, the core of the activities is that the countrys enterprises and groups invest in other countries (territories) in cash, in kind and intangible assets, and control business managements of the enterprises out of the foreign countries (territories). The content of forei
36、gn direct investment mainly reflecting by invests in another economy to achieve its goal of lasting interest.1.3 Logics and Contents1.3.1 LogicsIntroductionRelated literature reviewsAnalysis of Chinese FDI to the Middle EastRegional Distribution of FDI in the Middle East from ChinaIndustrial Distrib
37、ution of FDI in the Middle East from ChinaAnalysis of the Middle East FDI in ChinaFlows and Change Trend of FDI in China from the Middle EastRegional Distribution of FDI in China from the Middle EastConclusions and SuggestionsConclusionsSuggestionsImprove the Investment Envi -ronmentImprove the Inve
38、stment Nationality and Industrial StructureStrengthening CooperationsOverall Status of FDI in the Middle East from ChinaIndustrial Distribution of FDI in China from the Middle East1.3.2 ContentsThe main Contents are as follows：Chapter 1 is the introduction of this paper. It describes the background and
