Gulf investments in Tunisia jumped in 2007, something which promoted the Tunisian government to plan to carry out new projects during the coming five years at costs ranging from 50 billion to 60 billion U.S. dollars.

Tecom company, an affiliate to Dubai Holding Company of the United Arab Emirates (UAE), won a deal to purchase 35 per cent of capital of Tunisie Telecoms at a value of 2.82 billion dollars.

Meanwhile, UAE's Abu-Khatir Group also announced that it would carry out a project to set up a housing, entertainment and sports city in northern Tunisia at investment costs of around 5 billion dollars.

Al-Dar and Sorouh companies planned to invest around 5.5 billion dollars to develop a district in the capital Tunis as part of a housing and tourism project.

The UAE giant Sama Dubai will also carry out a project in Tunisia at investment costs of 14 billion dollars, which is described as the project of century in Tunisia.

The Bahraini Gulf Finance House announced it allocated some 3 billion dollars to build Tunisia's international financial harbor which will comprise a circulation center, insurance companies and branches of foreign banks in addition to a center for financial consultation companies.

Tunisia signed a memorandum of understanding with Qatar to set up an oil refinery in the Tunisian area of Al-Sakhirah, 320km south of Tunis at investment costs of around 2 billion dollars.

Arab economic sources attributed Gulf investment inflows into Tunisia to many reasons including the remarkable growth rate and security and political stability.

According to Arab Monetary Fund figures, the growth rate in Tunisia increased from 5.5 in 2006 to 6.2 per cent in 2007.

Tunisia ranked first among the Arab and African countries in terms of economic competitiveness in a ranking by the International Economic Forum and ranked 30th among its world counterparts. The country also ranked first among the African countries in the 2007 Global Peace Index.

The Tunisian government plans to attract around 45.5 billion dollars to finance projects in its five year plan of 2007-2011.

The government is looking forward to attract more foreign investments including 6 billion dollars as direct investments and 9.7 billion dollars within the framework of cooperation and partnership with some Arab and non-Arab countries and regional and international institutions.