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Capital Flight
(redirected from Flight of Capital)

   Also found in: Dictionary/thesaurus, Wikipedia 0.01 sec.
Capital flight
The transfer of capital abroad in response to fears of political risk.

Capital Flight
A situation in which foreign investors remove their investments from a particular country because of some increase in country risk. Capital flight may occur because of government instability, the sudden appearance of high inflation, or because another country's government offers a better deal. Governments almost always try to prevent capital flight from occurring, but this is not always possible. See also: Foreign direct investment.

capital flight
The shifting of funds out of a country to avoid confiscation, controls, or depreciation. Capital flight results in further deterioration of a currency's exchange rate.


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Most of the decline came from Gulf stock markets, which dropped $32 billion in value to $750 billion, with the Saudi bourse could spread to other countries in the region and trigger a flight of capital.
He stressed the need for extending more incentives to Saudi investors to avoid a flight of capital funds.
He warned that if the government would not take the action seriously, the flight of capital from the country would be increased.
 
 
 
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