FDI flows to the Middle East has contracted by 24 per cent to $68 billion (Dh249.75 billion) in 2009, according to World Investment Report. "Except in the case of Kuwait, Lebanon and Qatar, inward FDI declined across the region. The contraction hit Turkey and the United Arab Emirates the hardest. In Turkey, cross-border mergers and acquisitions plummeted, and export-oriented industries suffered from the impact of the global crisis," the report said.

Saudi Arabia was ranked 8th in the report attracted $35.5 billion in FDI last year compared to $38.2 billion in 2008.
FDI outflows from the region, 87 per cent of which are generated from the countries of the GCC, declined by 39 per cent to $23 billion. Rising outward investment from Saudi Arabia was not enough to compensate for the negative impact of the Dubai World crisis.
The report expects FDI inflows into the region to recover in 2010 as international credit markets stabilise and sustained commitment of region's governments to ambitious infrastructure projects. Outward investment, on the other hand, is expected to remain subdued in the short term as many countries in the region are busy restructuring government related entities and corporates impacted by the fin-ancial crisis.
Globally, among the largest FDI recipients, China rose to second place after the US in 2009.