Foreign direct investments (FDI) inflow into the GCC region registered a fall of 35 per cent in 2011, according to the 2012 World Investment Report by the UN Conference on Trade and Development (UNCTAD). The main reason for the decline was that Saudi Arabia – the region’s biggest recipient of FDIs – saw a 42 per cent fall in 2011 to $16 billion, said the report. According to the report, the slowdown of the construction sector has reduced FDI inflows, since it is one of the most important areas for non-oil foreign investment in the region. They increased by 54 per cent in 2011 after bottoming out at a five-year low in 2010. Going ahead, UNCTAD said that prospects are still negative for inward FDI to the region.