Page 279 - MOE ENGLISH PR REPORT - FEBRUARY 2024

3/5/24, 10:12 AM Harnessing FDI for Driving Trade report launched during MC13 in Abu Dhabi - Aletihad News Center

Titled “Investing in Global Trade Growth: Harnessing FDI for Driving Trade”, the report reviews the challenges that

countries, particularly developing countries, face when seeking to build and maintain their trade infrastructure and
proposes a framework to help them to address them. According to the report, many of these challenges are financial,

with funding gaps inhibiting investment in transportation networks, logistics and warehousing facilities, customs and

border-control functions and IT systems – all limiting a nation’s private sector from participating fully in global trade.

The report cites research by the World Economic Forum that suggests a 10% improvement in infrastructure quality ca

lead to a 1% increase in GDP growth. Bringing down the costs of trade and improving the transparency of trade

processes will also allow more SMEs, women-owned businesses and youth-led firms to tap into global markets.

Foreign direct investment channelled towards trade infrastructure can play a vital role. However, this endeavour,

particularly in emerging and developing economies, comes with a myriad of challenges and risks which deter

investors. This includes financial risks such as corruption and currency fluctuations, political instability, a cumbersome

regulatory environment, underdeveloped technological ecosystems, and environmental obstacles.

Related News

WTO MC13 ends with decisions on dispute Agriculture file addressed for first time at
reform, development; commitment to WTO Ministerial Conference: Al Zeyoudi

The report makes two major recommendations for governments looking to create the optimum environment for

investment inflows. The first is a Framework for Trade Infrastructure, which would focus on providing a risk-mitigation
mechanism for trade infrastructure, offering political risk insurance, credit enhancement, and guarantees for trade

infrastructure projects, as well as technical assistance, capacity building and dispute resolution functions. This would

promote FDI by boosting investor confidence and attracting a wider range of investors.

The second is the development of a collaboration Platform between international organisations that would promote FD

in trade infrastructure. This would leverage international trade organisations and their networks to conduct research,

offer capacity building, knowledge and data sharing, advocacy and policy dialogue development.

https://en.aletihad.ae/news/uae/4467077/harnessing-fdi-for-driving-trade-report-launched-during-mc13 2/3