Analytical Paper-Investment Research Paper Example | Topics and Well Written Essays - 3750 words

Analytical -Investment - Research Paper Example With this regard, the possession of adequate resources along with growing trade opportunities in the developing economic prospects of South Africa have been considered as a vital concern for the global companies to increase their investment portfolios. Additionally, the diplomatic association between Kuwait and South Africa signifies growth prospects for both the countries. One of the significant opportunities can be identified as the increasing importance attained by South African mining industry within the world economy. Stating precisely, Kuwait investing in South Africa shall be rewarded with significant opportunities facilitated with continuous development of the host nation. Fundamentally, steered by such developmental opportunities, the Gulf economies have been focused on creating a trade relation with Africa in the recent phenomenon which shall also benefit Kuwait when investing in South African mining industry. ... Therefore, an increasing practice of Foreign Direct Investment (FDI) is often observed, which enables both the recipient and investor countries to efficiently practice their range of industrial activities. Correspondingly, the discussion of the paper has been emphasized on the emerging trend of FDI and its significance towards improving the present economic and political relation between Kuwait and South Africa. In order to clearly recognize the significance of FDI in the current phenomenon, the paper highlights the major advantages that can be availed by Kuwait through its investment in the South African mining industry. The paper also tends to elaborate on the major motivational factors in South Africa which can facilitate Kuwait to efficiently perform its varied range of trade activities along with support the credibility of both the nations in the present world economy. Focusing on this particular aspect, the paper also recommends few effective measures for Kuwaiti investors when building trade relations with South Africa through direct investment in the mining industry. Introduction The emergence of South African mining industry has been observed as a major resource for the country which enabled it to attract global investors such as Kuwait. The mineral development sector of the country is highly focused on increasing the efficiency of the mining and mineral industry which has enabled the country to experience a radical economic stabilization (South African Embassy, 2013). Although the trade relation between Kuwait and South Africa has recently come into the limelight, these two economies have been into a distinct global trade relation since past few decades. The political relation between