MALIK AKAR AYAR Minister of Investment	LAM AKOL AJAWIN Minister of Foreign Affairs

FOREIGN investors poured an extra $2.1 billion into Sudan last year, making it one of the fastest growing economies in Africa. Data from the United Nations Conference on Trade and Development (UNCTAD) shows a remarkable 40 percent increase in foreign direct investment, continuing the growth trend of recent years.

Much of that investment is connected, either directly or indirectly, with the rapid growth of Sudan’s oil industry. Additionally, the signing of the Comprehensive Peace Agreement (CPA) last year opens up opportunities for foreign companies across the board.

After more than two decades of civil conflict, Sudan needs massive help from outside to develop the potential of its economy. Huge investment is needed to build roads and power stations, irrigation canals and water treatment plants, develop aviation and the waterways, and expand the telecommunication system. As one Egyptian investor puts it, “It is a country that needs everything.”

Sudan offers numerous attractions as an investment destination. Situated in the north east of Africa, its vast territory borders no fewer than nine countries. Many of its neighbors are landlocked, but Sudan has access to foreign markets via its ports on the Red Sea.

It has an abundance of under-exploited natural resources, from oil to water, rich agricultural land and gold. Minister of Investment Malik Akar Ayar, says, “Sudan is a virgin country, and the opportunities are at hand. We just need people to come in and invest.”

Mr. Ayar emphasizes that Sudan has entered a new phase of political stability, with a multi-party system. “This is a new era. The crucial element is the agreement between the two parties, the NCP and the SPLM, to end the war and implement the peace accord. The unity of Sudan will be built on diversity.”

Minister of Information Zahawi Ibrahim Malik says corporate America should be asking why the Chinese, the Malaysians, the Pakistanis, the Indians, and the Europeans do business in Sudan, and not U.S. companies. “It is high time for U.S. firms to venture into Sudan, and from Sudan into Africa. We have enormous potential and huge resources, and there are many business opportunities to be had.”

Sudan is strengthening its relations with regional and international organizations related to trade and investment. It has membership in the COMESA (Common Market for East and Southern Africa), the largest regional trading community on the continent, and has applied to join the World Trade Organization. It will attempt to join the Arab Free Trade Organization in 2007.

Sudan has strong ties with the Gulf, from which it draws substantial investment. One of the most recent examples is the establishment in Khartoum of the Emirates and Sudan Bank, backed by Dubai Islamic Bank (DIB) and other UAE institutions (see page 2).

Asian countries, including China, India, and Malaysia are also investing both inside and outside the oil sector. The Indian company Videsh recently signed a $350 million power project deal that will be India’s second largest investment in the country, after oil concessions.

In January, Khartoum hosted the Sixth African Union Summit, the first time that an event of such magnitude and scale has been held in the capital for decades. This month, it will host the Arab League Summit.

Lam Akol Ajawin, Minister of Foreign Affairs, declares that hosting the summits is a symbolic expression of Sudan’s seriousness in promoting strong Afro-Arab relations. “We want to reflect a positive interaction,” he says.