fdi outlook whole

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Special RepoRtwww.fDiintelligence.com

Manufacturingmakes a comebackFDI GLOBAL OUTLOOK REPORT 2011

PRODUcED By PUBLIshED By


2/28April/May 2011 www.fDiIntelligence.com 1

CONTENTS

OVERVIEW

02Last year saw further drops in FDI levels globally, though the rate of decline slowed markedly.The precarious nature of the economic recovery poses a threat to FDI prospects for 2011, but fDi

Intelligence expects greenfield projects to return to growth in the coming year. By Henry Loewendahl.

SOuRCECOuNTRIES

06Despite a drop in overseas projects, western Europe has retained its position as the worlds leadingsource region for FDI, while the Middle East continued its decline.

dESTINaTIONCOuNTRIES

08Asia-Pacific has retained its position as top FDI destination region, while the US remains the leaddestination country and Singapore stays at the helm of the city rankings.

amERICaS

10Last year was a good year for both the US and Canada in FDI terms, with California and Ontario toppingthe state rankings. Meanwhile in Latin America, Brazil overtook Mexico as the leading FDI country for

the first time since 2005.

aSIa-PaCIfIC

13Asia-Pacifics rise up theFDI rankings shows no sign of slowing, driven by thebehemoth economies of Chinaand India. However, when it comes to growthit is Australia that wasthe regions star performer in 2010.

EuROPE

15London and the UK still top the European charts, but for FDI growth in Europe the countries in the east,such as Russia and Poland, are the continents big story.

mIddlEEaST&afRICa

18The Middle East and Africa witnessed a torrid 2010 in FDI terms, with few countries showing any signs ofrecovery. Indeed, those that managed to show meaningful growth did so from a very low starting point.

SECTORS

21The software and IT sector saw increased FDI in 2010, pulling ahead of financial services as the leadingsector for FDI projects in 2010.

BuSINESSaCTIVITIES

24Manufacturing was the leading activity for FDI in 2010 with a 20% growth in projects and, along withsales marketing and business services, accounted for two-thirds of global FDI projects for the year.

CONCluSION

26In terms of sectors, source countries and destination countries, FDI trends in the short and medium termare looking particularly favourable for four emerging markets, according to fDi Markets new investor

signals tracking service. By Henry Loewendahl.

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OveRvIew

FDIs cutiuscv

While theworldeconomyreboundedwith solidGDPgrowth in 2010, investors

remained cautiousabout theirforeignexpansion plans.

Thenumberof greenfield FDIprojectsdeclined fractionally by0.38%in2010, followinga declineof 17.3%in2009.Greenfieldcapitalinvestmentfell by16%in2010, ontop of the 36% decline in2009, duetomajordeclines in thecapital-inten-sive naturalresources andreal-estate

sectors. Jobcreationbygreenfieldinvestorsalso declinedby4% last year.

Lacklustre economic recovery, exchangerate instability andthe sovereigndebt crisisweighedheavily on investors FDI plans forEurope, with a 15% decline in greenfield FDIprojects in westernEurope in2010 a largerdecline than inany other region. With a fur-ther scaling back of investments in real estateandnatural resources, FDI in theMiddle Eastcontinuedtodecline, with a 45%fallin capital investment in 2010.

brzil ndastrlithri

Brazil moved rapidlyup the rankingsof theleading FDI locations in theworld in 2010.With 28%growth ingreenfieldFDIprojects,Brazil was the seventh leading location forprojects in 2010, up from 11thplace in 2009.Capital investment intoBrazil increased by

19.7% and job creationby64.5%,making it thefourthbiggest country in theworld for green-field investment andjobs. Brazilwas behindonlyChina, India and the USwhen it cametojob creation in 2010. Thecountryexperiencedvery strong growth in inward investment inthe renewable energy, electronics, chemicalsand foodandbeverages sectors in particular.

Australiaalso performed strongly in 2010,with a 39.5% increase in FDI projects (movingit from16thplace in2009 toninth in2010)anda 2.5-fold increase in capital investment,catapulting thecountry from 16th place in

2009 to fifth place in2010. Polandand Canadaalso recorded very strong growthof FDI pro-jects in2010, with 33.7% growth inprojectnumbers in Poland (although the254projectsattracted in 2010 were still farbelowthepeakof 355 in2008) and 16.3%growth inprojectnumbers in Canada.

uSndchinonsolidt ld

While Brazil, Australia,Poland,Canada andother countriesachieved faster growth inFDIin 2010, theUS and China further consoli-dated their market share dominance. Withstrong growth inFDI intoboth USand China,

their combined market shareof global FDIprojects increased from 17.7%in2009 to20.3% in2010. The countries combinedshare of global capital investment remainedunchanged at 17.6% in 2010.

The overall ranking of theworlds leading

LAsT YeAr sAW FUrTHerDrOPs In FDI LeVeLs GLOBALLY,THOUGH THe rATe OF DeCLInesLOWeD MArKeDLY. THePreCArIOUs nATUre OF THeeCOnOMIC reCOVerY POses ATHreAT TO FDI PrOsPeCTs FOr2011, BUT fDi InTeLLIGenCeeXPeCTs GreenFIeLDPrOJeCTs TO reTUrn TOGrOWTH In THe COMInG YeAr.

BYhenryloewenDahl


4/28April/May 2011 www.fDiIntelligence.com 3

locations for FDI remainedunchanged in 2010in termsof numberof greenfieldFDI projectsattracted, with US at the top followedbyChina, UK, India andGermany.

asisbigfourexpndrpidly

Indian, SouthKorean, JapaneseandChinesecompanieswere among the fastest growinginvestors overseas in 2010. Indian companiesestablished 24%more FDIprojects overseas in2010,making India the ninth largest investorbynumberof projects in 2010. Indian firmscreated 43%more jobs overseas,moving the

country from18thplace in2009 to10thplacein2010 bynumberof jobs created overseas.Indiancompanies accelerated investmentoverseas across different industries,with thebiggest growth in thebusiness services,met-als, software and IT, andleisure andentertain-mentsectors. Indian companies expandedfastest in the UK, but the USand Gulf statesalso attracted increased FDI.

SouthKoreanFDI projects overseasincreased by 12.5%,with capital investmentup36% and job creationup50% in2010.South Koreamoved up the rankings tobe thesixthlargest global investor overseas in 2010

in capital investment andthe fifthbiggestcreator of overseas jobs. The fastest growthbySouth Koreas firms overseaswas in theelec-tronics, automotiveandplastics sectors.

There was a 13.9%increase in FDI projectsoverseas fromJapan in2010 and a 25%

InDIan, soUthKorean, JapaneseanD chInesecoMpanIes wereaMong thefastest growIngInVestors

oVerseas In 2010


5/284

increase in jobcreation, as Japanese companiesestablished larger projects overseas. Japanesecompanieswere the second largest creator ofjobs overseas, after theUS. Chinese firms alsoincreased thenumberof jobs created overseasby10%andcapital investment by2.5% in2010.Chinarankedeighth in theworld by capitalinvestment and jobcreation overseas.

SoftwareandITtopsectors

With a 5.4%growth inFDI projects in2010,software andIT replaced financial services asthe leading sector for greenfieldFDI projectsin2010. FDI projects in financial services fellby5% in2010. However, the main trend in

2010 wasthemajorgrowth in manufacturingsectors. Overall, thenumberof FDIprojects inmanufacturingsectors grew by20%in 2010,and job creationgrewbyabout 25%.

Themetals andautomotiveoriginal equip-ment manufacturer (OEM) sectors had thebig-gest absolute increase in capital investmentoverseas in2010, with 43%and34%growth,respectively. In 2010, the metals sector becamethe second major sector for capital investmentglobally (after coal, oil and natural gas) andautomotiveOEMthe thirdbiggest sector.

Real estatewas again one of the worstper-forming sectors,with a more than 50%declinein capital investment overseas in 2010. Capitalinvestment in2010 was less than one-fifth thelevel of 2008.

Creative industries andenvironmentaltechnology, which have beenthe twofastestgrowingsectors for FDI, remained relativelyflat in2010, with 1.9% and 0.3% increases inprojects, respectively. However, theirmarketshare of global FDI increasedmarginally from

5.1% in2009 to5.2% in2010 for creative indus-tries and from 5.2% to5.3% for environmentaltechnology.

Recovery forecast

The FDI forecasting unit offDi Intelligence isexpectinga 6.5% growth in greenfield FDI in2011,withmost countries attracting moregreenfieldFDI in2011 than 2010. Stronggrowth is expected in theautomotive, indus-trial machinery andequipment, metals andchemicals sectors in particular.Renewableenergy should also recover in 2011 andgrowstrongly. fDi Intelligence alsoexpects growth

in natural resources investment in 2011, aftera sharpdecline in2010, although this willdepend on theeasingof political instabilityin theMiddle East andnorth Africa. Slowergrowth inFDI is expected inbusiness services,financial services, and foodand beverages.

www.fDiIntelligence.com April/May 2011

Di IntellIgenceIs expectIng a6.5% growth IngreenfIelD fDI

In 2011

Buidi u: muui mj y i 2010. ov fDI muui j by 20% i y


6/285Apil/May 2011 www.fDiItlligc.com

FDI TrenDsOveRvIew

Global FDI showsGreen shoots

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In FOcuS

Number of projects

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0

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Global FDI by nUMber oF ProjeCts anD CaPex, 2010

not: Iclud timatsouc: fDi Makt

YeaR JObS % change

2003 1,868,465 /a2004 1,765,427 -6%

2005 1,846,310 5%2006 2,294,381 24%2007 2,516,799 10%2008 3,375,735 34%

2009 2,129,768 -37%

2010 2,035,593 -4%t 17,832,478

avg 2,229,060not:excludittatad tail, iclud timatsouc:fDi Makt

glObal FDI bY JObScReaTeD, 2003-10

MOnTh JObS gROwTh

j 183,389 /a

F 143,181 -22%M 165,700 16%

ap 110,120 -34%M 188,554 71%ju 166,795 -12%

ju 182,490 9%aug 168,710 -8%

sp 192,901 14%oc 204,368 6%

nv 174,917 -14%Dc 154,468 -12%

t 2,035,593not:excludittatad tail, iclud timatsouc:fDi Makt

glObal FDI bY JObScReaTeD, 2010


7/286

Despite a Drop in overseas projects,western europe has retaineD itsposition as the worlDs leaDingsource region for fDi, while theMiDDle east continueD its Decline

Familiarnames top

FDIsource rankings

Western European companiesestablished 5302 FDIprojects overseas in 2010,

investing an estimated $298bn and

creating an estimated 735,798 jobs.The region accounted for 44% of FDIprojects overseas, despite a 4% year-on-year decline.

FDI from Middle East companiescontinued its sharp decline in 2010,with companies setting up 15%fewer FDI projects in 2010, followinga 32% decline in 2009. Capital invest-ment by companies headquarteredin the region declined by more than50% in 2010, following a 59% declinein 2009. Most notably Bahrain(-63%), Saudi Arabia (-45%) and

Kuwait (-26%) witnessed large nega-tive growth in FDI projects estab-lished overseas. The current politicalcrisis in the Middle East and northAfrica means that the regions pros-pects for 2011 are uncertain.

RestofEurope rise

The Rest of Europe region,comprising eastern Europe, south-east Europe and Russia, replacedthe Middle East as the fourth largestsource market for FDI projects fol-lowing a 20% increase in projectsoverseas in 2010. The Rest of Europewas the only region to see anincrease in capital investmentoverseas, which was up 17%.

North America, Asia-Pacific andLatin America and the Caribbean allhad small year-on-year increases ofoutward FDI projects of 3%, 4% and6%, respectively. Latin America andthe Caribbean is the only region tohave a year-on-year increase in thenumber of outward FDI projectsover the past seven years, indicatingthe economic growth and dyna-mism of the region. However, withonly 2% of global FDI projects, theregion still has a long way to gobefore becoming a global player

in outward FDI.Only 1.19% of global FDI projects

were from African companies in2010, following another 12% year-on-year decline in the number ofoverseas FDI projects. Investment

and jobs created by African compa-nies overseas declined by 1% and3%, respectively, in 2010.

USleads greenfieldFDI

The US was again the leading sourcecountry for greenfield FDI, with UScompanies announcing 2800 FDIprojects overseas, more than doublethe number of the second leadingsource country, the UK. The US

accounted for 25% of global FDIprojects, 16% of global capitalinvestment and 20% of estimatedjobs created. US companiesannounced 113 more FDI projectsoverseas in 2010 than in 2009, thehighest increase in overseas FDIof any source countr y.

After the US, the UK, Germany,Japan and France were the topsource countries for FDI in 2010. Ofthese countries, Japan experiencedthe biggest year-on-year increase inoverseas FDI with a 14% increase in

the number of projects, whileFrance had the biggest decline of16%, with a 29% decline in capitalinvestment overseas.

South Korean companiesrecorded a 12.5% growth in FDI pro-

Rising fast: companies from Seoul (above) made a big impact in 2010 with regards to overseas locations, but it was the more established placessuch as the US (top left) and London (bottom left) that dominated

.Di.m a/My 2011


8/287

fDi trenDsSoURcES

jects overseas in 2010. Associatedcapital investment increasedby36%, making the countrythe sixthlargest investoroverseas in 2010,up from11thplace in2009. Anesti-mated 106,443 jobswere createdoverseas by SouthKorean companiesin2010, 50% higher than in 2009,making the country the fifthbiggestcreator of jobs overseas in the world.

Ldp sureiLondonremained the top sourcecity for FDI projects for the sixthyear running in 2010, with compa-niesheadquartered thereannounc-ing 616 FDI projects (5% of theglobaltotal),with estimated capital invest-ment of $41bnandcreating morethan 70,000 jobs.

Paris ranked second toLondonin termsof outward FDIprojectsin 2010, although with a decline

inoverseas projects of 19%, it ledNew Yorkbyonly three projects.Tokyo was in fourthposition withSeoul in fifth.

Seoul-based companies createdmore than 95,000estimated jobsoverseas in 2010, 59%higher than2009, ranking Seoul as the topsource city in theworld in termsof jobcreation overseas. These jobswere created asa result of 171pro-jectsandalmost $32bn in estimatedcapital investment an increase of38%compared with 2009.

Eachof the11 Japanese cities thatfeaturedinthetop 150cities for FDIprojectsoverseas in2010 witnessed anincrease inFDIprojects incomparisonwith2009. These citiesaccounted for6%ofglobalFDIprojects in2010.

SeoUL-baSedcompanieScReatedmoRe than95,000eStimated jobSoveRSeaS in2010

a/My 2011 .Di.om

SoURcE PRojEct % c h SoURcE caPEx % ch SoURcE jobS % chcoUntRy nUmbERS 09 coUntRy ($bn) 09 coUntRy cREatED 09

us 2800 4% us 121.01 -13% us 415,453 2%

uK 1140 -4% uK 61.81 -3% j 213,361 25%

gmy 1101 4% gmy 60.88 0% gmy 162,371 0%

j 859 14% j 57.98 -10% uK 131,272 -3%

f 590 -16% f 39.53 -29% s Ko 106,439 51%

no: exd d,dm; so:D Mk

GLobaL FDI by toP FIvE SoURcE coUntRIES, 2010

GLobaL FDI by toP FIvE SoURcE cItIES, 2010SoURcE PRojEct % c h SoURcE caPEx % ch SoURcE jobS % chcIty nUmbERS 09 cIty ($bn) 09 cIty cREatED 09

lodo 616 -1% lodo 41.30 13% so 96,215 59%

p 366 -19% p 32.04 -29% tokyo 87,487 27%

n Yok 363 17% so 31.94 38% lodo 72,332 4%

tokyo 337 2% tokyo 17.83 -56% p 62,372 8%

so 171 13% K lm 16.66 243% Do 51,569 221%

no:exd d,dm; so:D Mk

GLobaL FDI by SoURcE woRLD REGIon, 2010SoURcE PRojEct % ch caPEx % ch job % chREGIon nUmbERS on 09 ($bn) on 09 cREatIon on 09

w eo 5302 -4% 297.78 -19% 735,798 -10%

noh am 3086 3% 212.12 -19% 451,761 0%

a-p 2417 4% 136.78 -4% 628,469 2%

r o eo 461 20% 30.36 17% 76,021 7%

Mdd e 354 -15% 38.02 -51% 82,342 -26%

lm & cbb 284 6% 19.24 -6% 43,738 -4%

a 143 -12% 14.46 -1% 17,464 -3%

Total 12,047 0% 748.75 -16% 2,035,593 -4%

no: exd d,dm; so: D Mk


9/288

AsiA-PAcific hAs retAined its PositionAs toP fdi destinAtion region, whilethe Us remAins the leAd destinAtioncoUntry And singAPore stAys At thehelm of the city rAnkings

Asia-Pacificgrowthstorycontinues

The overall destination trendsin 2010 remain the same as in2009, with Asia-Pacific rank-

ing as the top destination regionby number of FDI projects attracted,the US top destination country and

Singapore top destination city.Since fDi Markets records began

in 2003, Asia-Pacific has been thetop destination region for globalFDI. The region continued to domi-nate in 2010, attracting more thanone-third of global FDI projects, cap-ital investment and jobs. The num-bers of projects and jobs created inthe region remained similar to 2009levels, with capital investmentdeclining 12% to $265bn. However,this decline was lower than theoverall global decline in capital

investment of 16%.

RestofEuropegrowingfast

Despite an overall decline globally,the Rest of Europe region andNorth America were the fastest

growing regions for greenfieldFDI in 2010, increasing 23% and19%, respectively. However, the tworegions attracted less capital invest-ment than during 2009, down 20%in North America and 15% in theRest of Europe in 2010.

Western Europe, Africa, theMiddle East and Latin Americaand the Caribbean all faced adecline in the number of FDI pro-jects attracted in 2010. WesternEurope was the hardest hit as pro-

ject numbers declined 15%, capitalinvestment figures fell by 28% and25% fewer jobs were created as aresult. The Middle East suffered themost in terms of capital investment,with figures down 45% comparedwith 2009.

While the number of FDI pro-jects into Latin America and theCaribbean declined by 4% in 2010,capital investment and job creationin the region increased by 8% in2010, with announced capitalinvestment reaching an estimated

$111.99bn.It was the only region

to record an increase in capitalinvestment and job creation in2010, as foreign companies becamemore confident about the areas eco-

nomic prospects and establishedlarger projects.

USstaysaheadofChina

For the second year running, theUS attracted more FDI projects thanany other country with 1331 pro-jects, compared with 1158 in China.Both the US and China recordedgrowth in FDI projects in 2010,with a 19% increase in the USand13% increase in China. Their com-bined share of global FDI projects

increased from 17.7% in 2009 to20.6% in 2010.

While the US attracted moreFDI projects than China, Chinaattracted more valuable projects.China was the number one countryin the world for capital investmentand job creation with an estimated$77bn investment and 305,615 jobscreated in 2010. The US was numbertwo for capital investment andnumber three for job creation,behind India.

Bigfivestill dominantThe top five destination countries(US, China, UK, India and Germany)together attracted 36% of all globalFDI in 2010. The UK and Germanyheld onto spots in the top five

.di. Ap/ma 2011


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Si si: Si is wds di FDI dsii i, sii i s d f w s

For the SeconDyear runnIng,SIngaporeSurpaSSeD allother majorcItIeS

despite a 39% and 11%decline ininwardFDI projects, respectively.For the secondyear running,

Singapore surpassed othermajorcities, such as Shanghai, London,Dubai and HongKong, to rank asthe top destination city for FDI pro-jects in 2010. The city attracted 300projects in 2010, an increase of 8%over 2009. Capital investment inSingapore was also up55%,creating 29%more jobs.In termsof capital investment,

Gladstone in Australiawas the topcity in the worlddue to onemajorproject in 2010. Malaysian companyPetronasannounced the investmentof $16bn into the city for a gas pipe-line. Shanghai was top recipient forjobs created through FDI with anestimated 26,238 jobs created inthecity in 2010, a decline of one-fifth on 2009, indicating companiesare looking at less overheated citiesin China (and elsewhere) for labour-intensive projects.Asia-Pacificcitiesdominated

thetopglobal cities in terms of jobcreation.Fourof the top fivecitiesincludedShanghai, Singapore,Tianjin (China) andBangalore (India),whichtogetherattracted 5%of jobscreatedgloballybyFDIin 2010.

fdi trendsDEStinationS

Ap/may 2011 .di.o

DEStn PRojECt % Ch DEStn CaPEx % Ch DEStn joBS % ChCoUntRy nUmBERS 09 CoUntRy ($Bn) 09 CoUntRy CREatED 09

Us 1,331 19% ca 77.17 -12% ca 305,615 -9%

ca 1,158 13% Us 54.67 -22% ia 181,725 14%

Uk 748 -11% ia 42.90 -13% Us 122,882 15%

ia 691 0% Baz 41.13 20% Baz 120,453 65%

gay 379 -39% Auaa 36.38 157% rua 100,351 1%

no: exua aa,ua; sou: d ma

GloBal FDi By toP FivE DEStination CoUntRiES, 2010

GloBal FDi By toP FivE DEStination CitiES, 2010DEStn PRojECt % Ch DEStn CaPEx % Ch DEStn joBS % ChCity nUmBERS 09 City ($Bn) 09 City CREatED 09

sapo 300 8% gao(Au)16.00 3101% saa 26,238 -20%saa 252 10% sapo 12.98 55% sapo 25,179 29%

loo 241 8% saa 8.37 1% taj (c) 24,679 191%

duba 180 -20% ro Jao 7.27 600% s Pb 19,281 38%

ho ko 177 -24% cuo(cub) 5.80 /a* Baao 19,096 19%

no:exua aa,ua; * - o apa v 2009;sou: d ma

GloBal FDi By DEStination woRlD REGion, 2010DEStination PRojECt % Ch CaPEx % Ch joB % ChREGion nUmBERS on 09 ($Bn) on 09 CREation on 09

Aa-Pa 3984 1% 265.42 -12% 884,728 0%

w euop 2514 -15% 87.58 -28% 172,407 -25%

r o euop 1662 23% 88.94 -15% 344,234 -3%

no Aa 1574 19% 67.40 -20% 143,964 10%

laa & cabba 1055 -4% 111.99 8% 282,007 -2%

m ea 675 -8% 44.21 -45% 76,795 -19%

Aa 583 -11% 83.22 -13% 131,458 -7%

toa 12,047 0% 748.75 -16% 2,035,593 -4%

no: exua aa,ua; sou: d ma


11/2810 .DiIllic.cm Ail/Ma 2011

LAst yeAr wAs A gooD yeAr for both

the Us AnD CAnADA In fDI terMs, wIthCALIfornIA AnD ontArIo toppIng thestAte rAnkIngs. MeAnwhILe In LAtInAMerICA, brAzIL overtook MexICo Asthe LeADIng fDI CoUntry for thefIrst tIMe sInCe 2005

USmaintains leadas

Brazil stars inLatam

In 2010, one-fifth of foreigninvestors chose the Americas asa location for investment. North

Americas share of global FDIincreased from 11% in 2009 to 13%in 2010, while Latin America and

the Caribbean retained their marketshare of 9% of global FDI.

While North America attractedmore projects than Latin Americaand the Caribbean, the average pro-ject size in Latin America and theCaribbean was twice the size in capi-tal investment and three times thesize in number of jobs created thanthat of North America.

North America has grown forthe sixth consecutive year as anFDI location. Figures for 2010 showthat the global recession did not

deter investors from the area asproject numbers increased 19%on 2009. North America was theonly region to experience growthin project numbers in both 2009and 2010.

UStopsglobal charts

The US has maintained its positionas the numberone global destinationcountry for FDI for the second succes-sive year, extending its lead on Chinain terms of project numbersattracted. In 2010, though capitalinvestment fell by 22% toan esti-mated $54.7bn, job creationincreased to an estimated 122,882, up15% on 2009, on top of the19% year-on-year increase in project numbers.

Canada also performed well in2010, with projects numbersincreasing by 16%, resulting in thecountry climbing from 17th most

attractive destination country glob-ally for FDI to 13th. FDI projects intoCanada were more capital andlabour intensive than FDI into theneighbouring US. In 2010, the aver-age project into the US was $41.1mand created 92 jobs, while the aver-age project size in Canada was$62.5m and created 114 jobs.

CaliforniaandOntario leadstates

California and Ontario maintainedtheir positions as the top two desti-nation states in North America for

FDI in 2010. California in the USattracted a total of 172 projects,an increase of 7% in 2010, whileOntario in Canada attracted 127FDI projects, an increase of 21%compared with 2009.

California also ranked as the topdestination state in North Americafor capital investment, with growthof 37% in 2010, and second in termsof job creation, although it didexperience a decline of 8%. Ontarioranked second in terms of capitalinvestment and first for jobs cre-ated, but numbers fell 31% and14%, respectively. Together thesetwo states attracted 20% of capitalinvestment and 14% of jobs createdthrough FDI in North Americain 2010.

Floridahasbestyearyet

Florida experienced its best yearfor FDI attraction since fDi Marketsrecords began in 2003. In 2010, thenumber of FDI projects increased67% to 72 projects, with Floridaattracting 5% of FDI into NorthAmerica.

The state of New York witnessedthe largest nominal increase,attracting 126 projects, up 45%,moving it to third position amongdestination states in North America.

The biggest movers in the rank-ings include South Carolina, which

moved from 15th position to 11th,and Tennessee, which climbed from22nd to 15th place, as FDI into bothstates almost doubled. FDI intoTexas and Georgia fell 12% and17%, respectively, in 2010.

Latin lesson: So Paulo is the leading FDI city in the Latin America and Caribbean region, while Brazil has ousted Mexico in the areas country rankings


12/2811Apil/May 2011 www.DiIllic.com

fDI trenDsAmeriCAS

NYokandToontotopcty lstBoth NewYorkandToronto, placedfirst andsecond, extended theirleads as the top destination cities inNorth America in 2010 with figuresup 60%and14%, respectively. NewYork attracted a total of 101FDI pro-jects in 2010,which helped thecityclimb theglobal ranks tobecomethe seventhmost popular destina-tion city in 2010, up from16thplacein 2009. Houston, SanFranciscoandMiami claimed third, fourth and

fifthpositions inNorth Americawithproject numbers increasingby40%, 48%and26%respectively.

Los Angeles, California;Chicago,Illinois; andAtlanta, Georgia, fellout of the top five destination citiesinNorthAmerica in 2010,with pro-ject numbers down32%, 23% and28%, respectively.

intstatnvstnt ncasInterstate investmentsshowed con-tinuedgrowth in 2010,with thenumber of interstateprojects intheUS rising31%. In 2010, 2760interstate projects in theUSwererecordedbyfDiMarkets,whichinvolved a combinedinvestment ofan estimated$117bn andthecrea-tion of an estimated782,513 jobs.While FDI intothe US is growing,interstate investment is stillmuchmore important for capital invest-ment (more than double the levelof FDI) andespecially jobcreation(more than six times the level of FDI).

Texas overtook California tobecome the top destination statefor interstate investments in 2010.

Interstate projects intoTexasincreased33%, with227projectslocating in thestate in 2010.Other states thatwitnessedasignificant increase includeTennessee (71%), Kentucky (54%) andPennsylvania (51%). Of the top desti-nation states, North Carolina experi-

more than doubled in 2010. The

country attracted a totalof 89 FDIprojects in 2010 whichconsisted ofan estimated$8.3bn of capital invest-mentcreatingan estimated 12,599jobs. Eight per centof FDI intotheLatinAmerica andtheCaribbeanregionwas located inColombia in2010,up from4%in2009.

Mexicoranked secondin theLatinAmerica andtheCaribbeanregionin 2010, although projectnumbers, capital investment andjobcreationfell by28%,44% and 52%,respectively. Asa result, Mexicodidnot feature in theglobal top 10 desti-nations, falling fromninth place in2009to15th place in2010.Chile andPeru alsoexperienceda sharpdeclinein FDIin2010,withproject numbersdown46%and32%, respectively.

SoPaulo anstopctySoPaulo remained the top destina-tion city in Latin America and theCaribbean in 2010 with a quarter ofall FDIprojects in Brazil locatingthere. The city attracted 85 projects,up 23%, withcapital investment up189% and job creation figuresup7%

on theprevious year.Bogot in Colombia climbed

fromseventhposition in 2009 tosecond in Latin America and theCaribbean in 2010. FDIprojects intothe city increased 82%. Montevideoin Uruguay followed a similar trend,climbing from 17th to10thpositionas FDI into thecity doubled.

MexicoCity experienced thelargestnominaldecline in theregion with 44% fewer projects in2010 comparedwith2009. FDI intoSantiago in Chile alsodeclinedwith

figureshalving, resulting in a dropfromthird to seventh in 2010. Asharp fall in FDI fromthe troubledeconomies of Spainand theUSwasa keycause of the decline of FDI inbothMexicoandChile.

enced thesharpest decline of 8%.California remained the top

source state for interstate invest-ments in 2010,with 12%of projectssourced from there. New York, Ohioand Illinois also increased in impor-tance as source states in 2010,withoutward interstate projects growingby 19%, 49%and59%, respectively.

Financial services andbusinessservices continuedtodominate thetype of interstate investments,withbusiness services the top activity,

accounting for 31% of all invest-ments. Scottradewas themostactive American companyfor inter-state investments, accounting foratotal of 57 in 2010.

LataattactonThe Latin America and theCaribbeanregionattracted 9%ofglobal FDI projects in 2010. A totalof 1055 FDI projects located in theregion, a decline of 4%on2009andthe firstdecline since 2005. Despitethe decline in project numbers, cap-ital investment increasedby8% toan estimated $112bn,whereas jobcreation figures fell slightly by 2%to an estimated 282,007.

The regionattracted among thelargestprojects in theworld in 2010.Theaverage capital investment perproject was $106m, secondonly toAfrica, and the average job creationper project was 267, the largest intheworld.

Bazl ovtaksmxcoFor the first time since 2005, Brazilovertook Mexico to rank as the top

destination country forFDI into theLatin America and theCaribbeanregion.While thenumberof FDIprojects increasedby29% in Brazilin 2010, Mexico experienced a 28%decrease. Brazil attracted 32%ofFDI into theregion in 2010,with 337FDIprojects involvinga combinedcapital investment of an estimated$41.2bncreating an estimated120,450 jobs. Ona global level,Brazil entered the top 10 destinationcountries in theworld,moving from11thposition to seventh place in

2010 in termsof numberof FDI pro-jects attracted. Brazil ranked fourthglobally in terms of capital invest-ment and job creation.

Colombiaalsowitnessedsuccessin FDIattraction as project numbers

FDi iNFLOwS2010

toal pojc 1574

Capial ivm $67.4btoal job cad 143,964

top co sowa ad Itvic

top ivo toyoa

souc: Di Mak

FDi iNFLOwS2010

toal pojc 1055Capial ivm $112b

toal job ad 282,007top co sowa ad It

vic

top ivo tloica adgal elcic

souc: Di Mak

NOrThAmeriCA

LATAmANDCAriBBeAN


13/2812

fDI trenDsAmeriCAS

12

-1 -0.5 0 0.5 1 1.5 2

Note: Excludes interstate, excludes retail, includes estimates

Source: fDi Markets, fDi Intelligence

WASHINGTON

COLORADO

GEORGIA

TEXASNEWYORKNORTHCAROLINAFLORIDA

ALABAMA

KENTUCKY

GrowthCompariSonS:StateS innorthameriCa(%), 2009-10

-1 -0.5 0 0.5 1 1.5 2

Note: Excludes retail, includes estimates


CHILE

COSTARICA

PERU

MEXICO

BRAZIL

COLOMBIAPUERTORICO

URUGUAY

GrowthCompariSonS:CoUntrieS in LatinameriCa&CariBBean(%), 2009-10

-0.8-0.6-0.4 -0.2 0 0.2 0.4 0.6 0.8

Note: Excludes interstate, excludes retail, includes estimates


DENVERLA

ATLANTA

CHICAGO

MIAMI

HOUSTONSAN

FRANCISCONEWYORK

GrowthCompariSonS:CitieS innorthameriCa(%), 2009-10

-1 0 1 2 3 4



SANTIAGO

MEXICOCITY

LIMA

RIODEJANEIRO

SAOPAULO

BOGOT

MONTEVIDEO

MANAUS

GrowthCompariSonS:CitieS inLatinameriCa&CariBBean (%), 2009-10

DeSTN PrOjeCT % Ch DeSTN CAPex % Ch DeSTN jOBS % ChSTATeS NUmBerS 09 STATeS ($BN) 09 STATeS CreATeD 09

Caliia 172 7% Caliia 6.89 37% oai 11,210 - 14%

oai 127 21% oai 6.31 -31% Caliia 9050 -8%

nw yk 126 45% txa 6.25 -52% n Calia 7772 54%

txa 92 -12% t 2.91 45% txa 6944 -34%

flida 72 67% nwdlad 2.80 1806% t 6750 82%

n: excludia adail,icludima; suc: Di Mak

DeSTN PrOjeCT % Ch DeSTN CAPex % Ch DeSTN jOBS % ChCOUNTrY NUmBerS 09 COUNTrY ($BN) 09 COUNTrY CreATeD 09

bazil 337 29% bazil 41.15 20% bazil 120,450 65%

Mxic 212 -28% Mxic 12.87 -44% Mxic 50,593 -52%

Agia 93 -1% pu 10.96 -14% pu 21,685 60%

Clmia 89 107% Clmia 8.32 346% Agia 19,887 22%

Cil 55 -46% Cil 7.99 -28% Clmia 12,599 23%

n: excludia adail,icludima; suc: Di Mak

TOP Five DeSTiNATiON STATeS iN NOrTh AmeriCA,2010

TOP Five DeSTiNATiON COUNTrieS iN LATiNAmeriCA AND The CAriBBeAN, 2010

TOP Five DeSTiNATiON CiTieS iN NOrTh AmeriCA,

2010

TOP Five DeSTiNATiON CiTieS iN LATiN AmeriCAAND The CAriBBeAN, 2010

DeSTN PrOjeCT % Ch DeSTN CAPex % Ch DeSTN jOBS % ChCiTY NUmBerS 09 CiTY ($BN) 09 CiTY CreATeD 09

nw yk 101 60% Aui 3.61 593% La vga 3222 214%

t 49 14% bl 3.51 /a* sma 3000 89%

hu 35 40% sma 1.70 223% plaqumi 2832 /a*

sa facic 3 1 48% Lak Ma 1.57 /a* Mil 2662 4654%

Miami 24 26% nw bc 1.21 /a* nw yk 2400 15%

n:excludia adail,icludima; * - caial im i 2009;suc: Di Mak

DeSTN PrOjeCT % Ch DeSTN CAPex % Ch DeSTN jOBS % ChCiTY NUmBerS 09 CiTY ($BN) 09 CiTY CreATeD 09

s paul 85 23% ri d Jai 7.27 600% Maau 7385 2605%bg 31 82% Ciug 5.80 /a* s paul 5843 7%

Mxic Ci 30 -44% Lui 3.00 /a* ri d Jai 4503 41%

bu Ai 28 -13% s paul 2.73 189% pauliia 3877 /a*

ri d Jai 23 -23% sua 1.78 10352% Mxic Ci 3865 -43%

n:excludia adail,icludima; * - caial im i 2009;suc: Di Mak

www.DiIlligc.cm Ail/Ma 2011

On the ascent: California is NorthAmericas leading state for FDI


14/28


15/28


16/2815Ail/Ma 2011 .DiIlli.m

LonDon AnD the UK stILL topthe eUropeAn chArts, bUt for fDIgrowth In eUrope the coUntrIes Inthe eAst, sUch As rUssIA AnD poLAnD,

Are the contInents bIg story

Russia leads RestofEurope rebound

Despitegrapplingwithmajoreconomic issues in 2010,not least the sovereign debt

crisis, Europestill attracted 35%ofglobal FDI projects in 2010 more thanthe Asia-Pacific region.Western Europeattracted 21% ofglobal FDI,while the Rest of Europeregion increased itsmarket sharefrom 11% of global FDI projects in2009 to14% in 2010.

In 2010, western Europe

attracted 21% of global FDIprojects,with 2514 projects investingan esti-mated $87.6bn of capital andresult-ing in thecreation of an estimated172,407 jobs. Greenfield FDI intowestern Europedeclined across all

indicators, withprojects down 15%,capital investment down 28%andjob creation figures down25% in 2010.

Theaverage project in western

Europewas less capital- and labour-intensive in comparisonwithFDIin other regions of theworld.Theaverage project in 2010 hadcapital investment of $35m andcreated 69 jobs.

UKleading location

TheUK, Germany andFranceremained the topthreedestinationcountries in Western Europetogether attracting55%of all FDIprojects in 2010. However, FDI intothese three countries fell,with

projects into theUK down 11%,Germany down 39%andFrancedown 17%.TheUKattracted 748FDIprojects investing an estimated$20bn of capital investment andcreatingan estimated 49,856 jobs.

Despite the economic problemsfaced by Ireland in 2010, investorswere still confident enough to investin the country. The numberof FDIprojects into Ireland increasedby

18%,with147 projects in 2010. Thismade 2010 thebest year for FDI pro-jects into Irelandsince fDiMarketsrecords began in 2003. Irelandachieved a market shareof 6% ofFDIprojects into western Europe in2010. Dublin was the key locationwithin Ireland, recordinga 27%increase in FDIprojects in 2010.

LondonandParis theleadingcities

Despite a decline in FDI intothe UKandFrance, FDI into their capitalcities increased in 2010 with the

number of FDIprojects in Londonup8%and in Paris up14%. Londonattracted a totalof 241 projects in2010, almost three times thenumberof its nearest rival, Paris. FDI intotheUKs capital involved a totalcapi-

Sparkling performance: Russia was the Rest of Europe regions top FDI destination country and Moscow its top city


17/28


18/28

17Ail/May 2011 .DiIlli.om

fDI trenDsEUROPE

-0.6-0.4 -0.2 0 0.2 0.4 0.6 0.8 1



GERMANY

SWEDEN

PORTUGAL

FRANCE

NETHERLANDS

UK

IRELAND

LUXEMBOURG

GRowthCompaRisons:CountRiEs inwEstERnEuRopE(%), 2009-10

-0.4 - 0.2 0 0.2 0.4 0.6 0.8



MALTA

MACEDONIA

LATVIA

BULGARIA

POLAND

RUSSIA

SERBIA

CZECHREPUBLIC

HUNGARY

GRowthCompaRisons:CountRiEs inREstofEuRopE(%), 2009-10

-1.5 -1 -0.5 0 0.5 1 1.5



KOLN

STUTTGART

NEUSS

BERLIN

DUSSELDORF

FRANKFURT

ZURICH

LONDON

DUBLIN

LUXEMBOURG

LIVERPOOL

GRowthCompaRisons:CitiEs inwEstERnEuRopE

(%), 2009-10

-1 0 1 2 3 4

Note: Excludes retail, i ncludes estimates


MOSCOW

KEIV

TIMISOARA

ISTANBUL

WARSAW

BUDAPEST

BRNO

GRowthCompaRisons:CitiEs inREstofEuRopE(%), 2009-10

DEstn PROjEct % ch DEstn caPEx % ch DEstn jObs % chcOUntRy nUMbERs 09 cOUntRy ($bn) 09 cOUntRy cREatED 09

UK 748 -11% UK 20.11 -50% UK 49,856 -26%gmay 379 -39% sai 11.74 8% sai 21,916 -26%

fa 268 -17% gmay 11.73 -34% gmay 21,590 -35%

sai 232 -9% nlad 9.50 13% fa 15,606 -36%

Ilad 147 18% Ialy 7.23 -28% Ialy 11,809 -15%

no:exludia adail,iludima; sou:Di Mak

DEstn PROjEct % ch DEstn caPEx % ch DEstn jObs % chcOUntRy nUMbERs 09 cOUntRy ($bn) 09 cOUntRy cREatED 09

ruia 366 13% ruia 31.26 13% ruia 100,272 1%

polad 254 34% tuky 8.31 -60% polad 45,930 -6%

romaia 142 0% polad 8.29 -28% romaia 31,869 -24%

cz r 139 70% huay 7.16 87% huay 28,788 39%

huay 132 52% romaia 6.94 -52% tuky 27,687 -42%

no:exludia adail,iludima; sou:Di Mak

tOP FIvE DEstInatIOn cOUntRIEs In wEstERnEUROPE, 2010

tOP FIvE DEstInatIOn cOUntRIEs In REst OFEUROPE, 2010

tOP FIvE DEstInatIOn cItIEs In wEstERnEUROPE, 2010

tOP FIvE DEstInatIOn cItIEs In REst OF EUROPE,2010

DEstn PROjEct % ch DEstn caPEx % ch DEstn jObs % chcIty nUMbERs 09 cIty ($bn) 09 cIty cREatED 09

Lodo 241 8% Lodo 3.92 -16% Lodo 7496 -13%

pai 87 14% Dd 2.18 766% Duli 4179 70%

Duli 75 27% pai 1.93 88% gk (bl) 3056 2926%Mui 49 7% rodam 1.73 480% tui 3000 1900%

Madid 44 -4% Duli 1.69 32% Via 2891 137%

no: exludiaad ail, iludima; sou:Di Mak

DEstn PROjEct % ch DEstn caPEx % ch DEstn jObs % chcIty nUMbERs 09 cIty ($bn) 09 cIty cREatED 09

Moo 73 -10% na. cly 3.30 2928% s p 19,221 38%

waa 56 115% s p 2.91 25% buda 10,960 150%

buda 49 81% buda 2.03 263% Moo 9,798 21%

Iaul 48 37% Iaul 2.01 -9% bua 8,747 -36%

pau 41 32% Moo 1.93 19% Iaul 6,579 -15%

no: exludiaad ail, iludima; sou:Di Mak

KyIv


19/2818 .DiIti.m Ai/Ma 2011

The MIDDle eAsT AnD AfrIcAwITnesseD A TorrID 2010 In fDITerMs, wITh few counTrIes showIngAny sIgns of recovery. InDeeD,Those ThAT MAnAgeD To show AnyMeAnIngful growTh IrAq, JorDAn,TAnzAnIA AnD MozAMbIque DID sofroM A very low sTArTIng poInT

MiddleEastandAfricatrapped inFDIdip

The Middle East experiencedan 8% drop in FDI projectsin 2010 and Africa a decline

of 11%. Capital investment in the

Middle East fell by 45%, with 19%fewer jobs created, while capitalinvestment into Africa fell by 13%,with job creation falling by 7%.

In 2008, the Middle East experi-enced a major boom in FDI acrossmany sectors, most notably the realestate sector. FDI into the regiondeclined significantly in both 2009and 2010. In 2010, 675 FDI projectswere located in the Middle Eastwith an estimated $44.21bn capitalinvestment creating an estimated76,795 jobs. This compares with

an estimated $150bn capital invest-ment in the Middle East in 2008and $80bn in 2009.

The average project size into theMiddle East and Africa has declinesignificantly. In 2008, the average

FDI project into the region involvedcapital investment of $177.7m andthe creation of 244 jobs. In 2010, theaverage project was less than halfthe size, with $65m investmentand the creation of 114 jobs.

UAE ead bu ip gbay

The United Arab Emirates, SaudiArabia and Qatar ranked as the topthree destination countries for FDIinto the Middle East in 2010, a repeatof the situation in 2009. However,the number of FDI projects intothese countries in 2010 fell by 17%,

15% and 16%, respectively. The UAEattracted a total of 279 projects in2010, more than twice the numberof its nearest rival, Saudi Arabia.Total capital investment into theUAE stood at an estimated $10.43bnwith the creation of an estimated22,010 jobs. FDI into the UAEdeclined in both 2009 and 2010, butstill remains above pre-2008 levels.

On a global scale, the UAE barelyheldonto a top 10 spot inthe num-ber of FDI projects attracted, fallingfrom sixth place in 2009 to rank

10th in 2010. However, relative tothe size of the country, the UAEsfigures for FDI still impress.

Although many Middle Easterncountries witnessed a decline in FDIin 2010, projects into Iraq increased

by 175%, albeit from a very smallstarting point. Iraq climbed fromthe 10th leading destination countryin the Middle East to fourth positionin 2010. The country attracted 7% ofFDI intothe region in 2010, up from2% in 2009.

Jordan also attracted growinglevels of FDI, with the number ofprojects up 74% in 2010, rankingit as the fifth leading destinationcountry in the Middle East.

Dubai ead ciy i

Dubai and Abu Dhabi in theUAE and

Doha in Qatar claimed the top threepositionsfor most attractive cities forFDI in theMiddle East in 2010, evenwith projects into these cities declin-ing by 20%, 13% and 44%, respec-tively. Globally, Dubai ranked as thefourthleading city in the world.

Baghdad in Iraq was the seventh

Baghdad: the Iraqi capital has witnessed an increase in FDI activity

FDI InFlows2010

Tta jt 675

caita itmt $44.2Tta j atd 76,795

T t fiaia iT it Dai Iami

bak (DIb)

s: Di Makt

MIDDlE EAst


20/2819Apil/May 2011 www.DiItllig.om

fDI TrenDsMIDDlEEAstAnDAFrIcA

leading city in the Middle East asits FDI increased by 300% in 2010.Amman in Jordan also experiencedone of the largest increases in FDI,with projects increasing by 89% in2010 and the city climbing from10th position to fifth in the topcities in the Middle East.

chaegigimefFDIi Afia

In 2008, Africa saw a substantialgrowth in FDI, but after the globalrecession and more risk-averseinvestment strategies, FDI in Africadeclined in both 2009 and 2010.

FDI projects into the continentdeclined by 11% in 2010, althoughFDI remains above pre-2008 figures.In 2010, a total of 583 FDI projectswere established in Africa with anestimated $83bn investment creat-ing an estimated 131,458 jobs.

Africa has attracted capital- andlabour-intensive projects in 2010. Theaverage project in 2010 was $143m(the largest capital perproject of anyworld region) andcreated 225 jobs.The relatively large size of projectsin Africashows a concentration on

large-scale natural resource, infra-structure and construction-relatedprojects, with relatively fewer manu-facturing, services or hi-tech projects,although in 2010 the composition ofFDI has begun toshift.

Tanzania and Mozambique wereamong the few countries that did,with FDI projects increasing by 109%and 50%, respectively.

Johannesburg in South Africaovertook Cairo in Egypt to becomethe leading destination city inAfrica for FDI projects in 2010.Cairo experienced one of the sharp-est declines in FDI in Africa, withprojects down by 41% in 2010. Veryfew cities experienced a significantincrease in FDI projects althoughLuanda in Angola had an increaseof 71% in 2010, albeit from a very

small base.

FDI fmIdia ieae

Western Europe is the leading inves-tor in Africa, accounting for 43%of FDI projects in the continent in2010 despite a 19% decline in thenumber of projects sourced fromthis region. FDI projects from Asia-Pacific into Africa increased by 11%in 2010, accountingfor 18% of allFDI into Africa.

India grew in importance,with the numberof FDI projects from

Indian companies into Africa increas-ing by 74% in 2010, ranking India asthe joint third leading source coun-try with France. Indias investmentswere mainly in financial services andcommunications.

suhAfiaadEgyp ead

South Africa and Egypt were the

top two destination countries inAfrica for FDI in 2010, attracting acombined 26% of FDI projects intothe continent. South Africa attracted89 FDI projects in 2010 with anestimated $5.79bn capital invest-ment creating an estimated 16,108jobs. The number of FDI projectsinto South Africa declined by 14%in 2010.

FDI projects into Egypt fell by30% in 2010, with Egypt and SouthAfrica witnessing two of the largestdeclines in FDI in Africa. Egypt

attracted 89 projects in 2010with an estimated $13.6bncapital investment creatingan estimated 17,115 jobs.

Very few countries in Africa wit-nessed an increase in FDI in 2010.

AlthoughmAnymIDDleeAsterncountrIeswItnesseDADeclIne InFDI In 2010, projects IntoIrAq IncreAseDBy 175%

FDI InFlows2010

Total pojt 583

capital ivtmt $83.2b

Total job atd 131,458Top to fiaial vi

Top ivto ntl

sou: Di Makt

AFrIcA


21/2820 www.DiIti.m Api/May 2011

fDI TrenDsMIDDlE EAst AnD AFrIcA

20

-0.5 0 0.5 1 1.5 2



BAHRAIN

UAE

SAUDIARABIA

JORDAN

IRAQ

growthcoMpArIsons:countrIEs In thEMIDDlEEAst (%), 2009-2010

DOHA

AL-MANAMAH

SHARJAH

DUBAI

ERBIL

AMMAN

BAGHDAD

growthcoMpArIsons:cItIEs In thE MIDDlE EAst(%), 2009-2010

-1.2 0 1.2Note: Excludes retail, includes estimates


RWANDA

ALGERIA

EGYPT

SOUTHAFRICA

MOZAMBIQUE

TANZANIA

growthcoMpArIsons:countrIEs In AFrIcA(%), 2009-2010

-1 0 1


GABORONE

KIGALI

TUNIS

CAIRO

LUANDA

DARESSALAAM

PORTELIZABETH

TANGIER

growthcoMpArIsons:cItIEs InAFrIcA (%),2009-2010

DEstn ProjEct % ch DEstn cAPEx % ch DEstn jobs % chcoUntry nUMbErs 09 coUntry ($bn) 09 coUntry crEAtED 09

uAe 279 -17% uAe 10.43 -16% uAe 22,010 -24%

sadi Aaia 94 -15% sadi Aaia 9.45 -34% sadi Aaia 11,382 -38%

qata 53 -16% qata 5.86 -73% qata 9793 -5%

Ia 44 175% oma 3.90 -36% oma 6383 41%

Jda 40 74% Ia 2.70 -22% syia 5774 75%

nt: exdittat adtai,idtimat; s: Di Makt

DEstn ProjEct % ch DEstn cAPEx % ch DEstn jobs % chcoUntry nUMbErs 09 coUntry ($bn) 09 coUntry crEAtED 09

sth Aia 89 -14% eypt 13.60 -24% eypt 17,115 -8%

eypt 62 -30% niia 12.44 90% sth Aia 16,108 -28%

M 47 4% uada 8.30 260% niia 10,640 38%

Tiia 44 -12% sth Aia 5.79 -22% Tiia 8806 -39%

Aa 32 -3% cam 5.28 400% Aa 6886 -21%

nt: exdittat adtai,idtimat; s: Di Makt

toP FIvE DEstInAtIon coUntrIEs In thE MIDDlEEAst, 2010

toP FIvE DEstInAtIon coUntrIEs In AFrIcA,2010

toP FIvE DEstInAtIon cItIEs In thE MIDDlE EAst,

2010

toP FIvE DEstInAtIon cItIEs In AFrIcA,2010

DEstn ProjEct % ch DEstn cAPEx % ch DEstn jobs % chcIty nUMbErs 09 cIty ($bn) 09 cIty crEAtED 09

Dai 180 -20% Dai 5.53 7% Dai 11,109 -24%

A Dhai 68 -13% r a laa 2.70 1650% A Dhai 5289 -5%

Dha 24 -44% A Dhai 2.43 -45% bit 2647 36%

riyadh 24 0% Dha 1.50 -65% Aayh 2494 /a*

Amma 17 89% Dammam 1.30 256% Dha 1982 -53%

nt:exdittat adtai,idtimat; * - apita ivtmt i 2009;s: Di Makt

DEstn ProjEct % ch DEstn cAPEx % ch DEstn jobs % chcIty nUMbErs 09 cIty ($bn) 09 cIty crEAtED 09

Jha 32 -6% Kii 5.00 2037% 6th ot city 3871 /a*cai 23 -41% cai 2.53 -77% lada 3509 65%

cap Tw 18 13% giza 2.07 /a* cai 3388 -67%

caaaa 16 -16% Taaya 1.71 /a* stpt 3000 /a*

naii 15 -12% Khatm 1.70 0% eat ld 2291 /a*

nt:exdittat adtai,idtimat; * - apita ivtmt i 2009;s: Di Makt


22/282121

QUOTE

FDI TrenDsSectorS

21

top SectorS by project numberS, capital inveStment ($bn) and jobScreated, 2010

The soFTware anD IT secTor saw IncreaseD FDIIn 2010, pullIng aheaD oF FInancIal servIcesas The leaDIng secTor For FDI projecTs In 2010

W

hile softwareand IT, busi-ness servicesandfinancial

services remainthe topthreesectors forglobal FDIprojects,therehas beena changein theirranking. Financial serviceswastheleading sector in2008 and 2009 butwith a 5% increase inFDIprojects,the software and IT sector is rankedas the leadingsector for FDIprojectsin 2010,with a totalof 1378projects.FDI in the software and ITsectoraccounted for11%of global projectsin2010. Software and ITwas also theleadingsector forFDIprojectsbetween2003and2007.

Thebusiness services sector wasthe secondbiggest sector for FDIprojects in 2010, alsomoving aheadof financial services, despite experi-encinga 3%decline. Job creation inbusiness services reached an all-time

high in2010 with thecreationof anestimated 88,747 jobs.

FssThe financial services sector experi-enced a decline of 5% inprojectnumbers, with1243 projects in 2010.This resulted in thesector fallingfrom first to thirdposition in therankings. Despitea drop inprojectnumbers and a 19%fall in job crea-tion, capital invested in thesectorremained relatively stable,with$20.2bn invested in2010.

The top five sectors in terms ofproject numbers also included the

industrialmachinery, equipmentand tools sector, and communica-tions sector. Combined, the top fivesectors accounted for 43%of globalFDI projects in 2010. Thiswas thesameas in 2009.

In contrast to thedecline in FDIin 2008 and 2009, FDI projects intheplastics sector increasedby45%in2010 to293 projects. The jobsassociatedwith these projects grewby72%andcapital investmentwasan estimated $11.9bn in2010. China

and theUSwere themaindestina-tions, attracting 39%of plasticsprojects in 2010.

e s h Theelectronic components sectorsaw thebiggest increase inprojectnumbers, upfrom393 in2009to515 in2010. This sectormoved tosixthplace in theglobalrankings,upfrom10thplacein2009,with thehighestnumber ofprojectsrecordedinelectronic components sincefDiMarketsrecords beganin2003. The

majority of theseprojects involvedmanufacturing andsales,marketingandsupport operations. Capitalinvestment inelectronic componentsgrewby63%toanestimated$35.57bnin2010, also anall-time

Software and ITovertakes finance

ai/My 2011 .fDiIti.m

Sector total Sector capex Sector new jobSprojectS ($bn) created

sft d IT i 1378 (5%) c, i d t 135.99 (-41%) r tt 237,705 (-43%)

Bi i 1254 (-3%) Mt 92.00 (43%) atmti oeM 200,866 (25%)

Fii i 1243 (-5%) atmti oeM 51.10 (34%) Mt 162,241 (54%)

Idti miy, qimt

d t 757 (-5%) r tt 48.93 (-52%) eti mt 145,440 (41%)

cmmiti 582 (11%) cmmiti 48.03 (10%) Bi i 88,747 (9%)

eti mt 515 (31%) atti/b y 40.64 (-49%) cmmiti 84,101 (15%)

Ttti 450 (-9%) eti mt 35.57 (63%) Idti miy, qimt

d t 73,319 (0%)

cmi 437 (20%) cmi 33.40 (-10%) sft d IT i 72,657 (-22%)

Mt 437 (26%) ht d tim 26.91 (-28%) Fd d tb 72,046 (-20%)

Fd d tb 415 (-5%) Fii i 20.22 (-1%) atmti mt 71,197 (13%)

atmti mt 345 (25%) Ttti 19.34 (-11%) Txti 66,740 (57%)

ht d tim 336 (-11%) smidt 16.63 (27%) ht d tim 58,295 (-32%)

r tt 313 (-25%) sft d IT i 13.72 (-3%) cmi 50,566 (10%)pti 293 (45%) ei d tbi 13.30 (97%) c, i d t 49,124 (-51%)

atmti oeM 280 (13%) a 12.76 (29%) cm ti 46,629 (11%)

ot 3,012 (27%) ot 140.21 (20%) ot 555,920 (30%)

Overall total 12,047 (0%) Overall total 748.75 (-16%) Overall total 2,035,593 (-4%)

nt: exd us ittt dt, id timt; t 2009 fii i bkts:fDi Mkt,fDi Iti


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high, while job creation increased41.2%.

Although the metals sector didnot feature in the top 10 sectors in2009, a 26% increase in FDI projectnumbers in 2010 resulted in the sec-tor climbing to eighth position inthe 2010 rankings. Capital invest-ment in the sector increased by 43%,with an estimated $92bn in 2010.There were a number of large invest-ments in the sector in 2010, the big-gest of these being South Koreansteel company Posco investing$7.03bn to establish its steel plant inKarnataka, India. The metals sector

increased the number of jobs cre-ated overseas, with a 54% growth injob creation in 2010 to an estimated162,241 jobs.

Fssil fuldip

The coal, oil and natural gas sectorexperienced the biggest decline inproject numbers in 2010, with adrop of 41% (a decline of 217 projects).Likewise, the number of jobs createdbythis sector declined by51% toanestimated 49,124. In terms of capitalinvested, the sector still remained the

leading sector for FDI globally despitea decline in capital investment of 41%in 2010 to an estimated $136bn.

FDI in the real-estate sector alsocontinued to decline in 2010. fDiIntelligences recap of 2009 trends

reported the number of real-estateprojects fell by 53% compared with2008. The number of projects hasdeclined further in 2010, with a 25%decline. Jobs created by the real-estate sector fell by 43%, although itremains the leading sector for jobscreation, ahead of automotive origi-nal equipment manufacture.

The alternative/renewable

energy sector experienced a declinein project numbers by 21% in 2010and job creation by 50% as compa-nies cut back on renewable energyelectricity projects, partly due tothe phasing out of attractive incen-

tives in key countries such asGermany, Denmark and Spain.However, the number of projectsin the engines and turbines sectorincreased by 34% in 2010 to 139 pro-jects. The number of jobs createdmore than doubled to an estimated46,042, while capital investmentgrew by 97% to an estimated$13.3bn. A high proportion of theseprojects, investment and jobs wentto the US, China and India, whichare new growth markets for renewa-ble energy after the initial lead byEuropean countries.

cmmuniains gwhFDI in the communications sectorcontinued its expansion in 2010.FDI in the sector grew by 11% in2010, reaching a record 582 projects.Capital investment increased by 11%and the number of jobs created bythe sector increased by 15% in 2010.Spanish telecommunications pro-vider Telefonica was a leading inves-tor in the sector, with major invest-ments in Brazil, Argentina and Peruto develop broadband infrastructure.Vodafone also featured highly in

terms of the number of projects andcapital invested, also in broadbandinfrastructure. A growing numberof data centre projects also fuelledinvestment growth in the communi-cations sector.

ThEUS, Chinaand indiaarEnEwgrOwThmarkETSfOrrEnEwablEEnErgy,afTEr ThE iniTial lEadbyEUrOpEanCOUnTriES

-200 0 150



SERVICESFINANCIAL

COMPONENTSELECTRONIC

NATURALGASCOAL,OIL&

RENEWABLEENERGYALTERNATIVE/

REALESTATE

SOFTWARE& IT

PLASTICS

TRANSPORTATION

CHEMICALS

METALS

TOpGrOwThanddeclIneSecTOrSbyprOjecT

numberS,2010

FDI TrenDsSectorS

www.fDiItlligc.com apil/My 2011


24/2824

FDI TrenDsBusiness Activities

ManuFacTurIng was The leaDIng

acTIvITy For FDI In 2010 wITh a20% growTh In projecTs anD,along wITh sales MarkeTIng anDbusIness servIces, accounTeDFor Two-ThIrDs oF global FDIprojecTs For The year

Manufacturingdominates businessactivity in 2010

I

n 2010, manufacturing was the

leading business activity for FDIprojects, accounting for 26% ofglobal FDI projects. The top threebusiness activities manufacturing;sales, marketing and support; andbusiness services accounted fortwo-thirds of global FDI projectsin 2010.

Mafag fm bManufacturing was top for projectnumbers, capital investment andjob creation in 2010. The number ofmanufacturing projects increasedby 20% and an estimated $357bnwas invested in manufacturing pro-jects, up 9.7% on 2009. The numberof jobs created by manufacturingFDI projects grew by 25% to an esti-mated 1.1 million in 2010.

Manufacturing is recovering

strongly, but has yet to return to2008 levels of FDI. Nevertheless,it accounted for 26% of global pro-jects, 48% of the global capitalinvestment and 55% of globaljobs creation in 2010.

icta m Information and communicationtechnologies, and internet infra-structure business activity hadanother year of solid growth, withFDI in both sectors reaching recordlevels. Project numbers increased by18.8% to 277 in 2010, capital invest-ment grew by 14.6% and job crea-tion by 7%. Investment by telecomcompanies drove the growth, withmajor global investments in broad-band infrastructure in particular.

.fDiIti.m ai/M 2011

top Business Activities By project nuMBers, cApitAl investMent ($Bn)And joBs creAted, 2010Business totAl Business cApex Business new joBs

Activity projects Activity ($Bn) Activity creAted

Mfti 3163 (21%) Mfti 357.94 (10%) Mfti 1,123,124 (25%)

s, mti d t 3099 (1%) ctti 80.26 (-43%) ctti 312,461 (-40%)

bi i 2235 (-1%) etiit 68.00 (-47%) liti, dit d ttti 95,485 (-28%)

liti, dit d ttti 623 (-13%) liti, dit d ttti 57.69 (-10%) Di, dmt d tti 75,565 (-11%)

hdqt 529 (-16%) extti 55.70 (-47%) extti 62,740 (-34%)

Di, dmt d tti 525 (6%) IcT d itt iftt 47.58 (15%) ctm tt t 62,230 (0%)

ctti 454 (-28%) bi i 22.55 (5%) hdqt 56,377 (-10%)

IcT d itt iftt 277 (24%) hdqt 16.60 (-3%) bi i 49,907 (-18%)

etiit 179 (-42%) Di, dmt d tti 16.05 (12%) IcT d itt iftt 42,834 (7%)

edti d tii 169 (-9%) s, mti d t 10.07 (-8%) s, mti d t 40,168 (-7%)

ctm tt t 166 (-5%) r d dmt 4.90 (-45%) sd i t 22,870 (35%)

r d dmt 158 (-22%) Mit d ii 2.55 (-26%) Ti t t 22,774 (6%)

Mit d ii 149 (-10%) edti d tii 2.06 (-13%) Mit d ii 17,256 (-26%)

extti 141 (-41%) ctm tt t 1.43 (-18%) r d dmt 16,875 (-26%)

sd i t 59 (26%) ri 1.25 (63%) etiit 15,409 (-53%)

Ti t t 58 (-12%) Ti t t 1.20 (19%) edti d tii 10,015 (-13%)ri 32 (-3%) sd i t 1.12 (93%) ri 3620 (82%)

ot 31 (-21%) ot 1.09 (-6%) ot 5883 (19%)

Overall total 12,047 (-0.38%) Overall total 748.75 (-16%) Overall total 2,035,593 (-4%)

nt: exd us ittt dt, id timt; t 2009 fi i i ts:fDi Mt,fDi Iti


25/2825

M : m, , mk , v m 2010

Manufacturing accounted

for 26% of global projects

The number of construction pro-jects fell by 28% to454 in 2010, capi-tal investment in the sector declinedby 44% and the number of jobs cre-ated by 39%. The projects that con-tinued to go ahead in 2010 were sig-nificantly smaller than in previousyears. The market share of construc-tion in global capital investment fellby 5% to10.7% in 2010.

FDI in extraction activities alsodeclined markedly in 2010, with 97

fewer projects recorded in 2010, afall of 40% on 2009. Capital invest-ment in extraction fell by 47% in2010 to an estimated $55.7bn. Thisdecline in projects and capitalexpenditure reduced extractionsshare of global jobs created to anestimated 62,740 in 2010, 3% ofthe global total.

elctricityssparkfads

FDI projects involved in electricitygeneration declined sharply in2010, with project numbers down

41% and the capital expenditureand jobs following this trend,down 47% and 53%, respectively.The decline was felt in both coal,oil and natural gas, and in therenewable energy sectors.

april/My 2011 www.fDiItlligc.com

-200

-100

100

R&D

SALES,MARKETING&SUPPORT

MANUFACTURING541

DESIGN,DEVELOPMENT&TESTING

ICT&INTERNETINFRASTRUCTURE

LOGISTICS,DIST&TRANSPORT

0

CONSTRUCTION

ELECTRICITY

HQS

EXTRACTION

2010sTOp GrOwThanddeclineacTiviTies byprOjecTnuMbers

not: exclud rtil, iclud timt.

sourc: fDi Mrkt, fDi Itlligc


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27/2827Apil/May 2011 www.fDiIlligc.com

FDI trenDsconclusion

strgga

The fDi Markets database included

a new service in 2010, trackinginvestor signals, which indicatewhen a company is considering

overseas investment. The signalsprovide unique insights into the

future of FDI.

Investor signals show that themost attractive countries for future

investment are broadly consistentwith the location of greenfield FDI

in 2010. This suggests that compa-nies will map out their global FDI

in a similar location pattern to 2010.

Of the most attractive countries

for future FDI, India, Mexico,Indonesia and Turkey are the onlycountries that received a higher

share of investor signals than theirshare of global FDI projects. fDiIntelligence therefore expects FDI

into these four countries to increasesignificantly in the short to

medium term.The source countries of compa-

nies considering future FDI is alsovery similar to FDI trends in 2010.

Indian companies are the main

exception, with a high numberof Indian companies considering

future FDI compared with theirlevel of FDI in 2010. fDi Intelligence

expects Indian FDI overseas to growstrongly in the short to medium

term. Investor signals also indicate

that companies from the UK, Chinaand Australia are planning to accel-

erate their FDI overseas.

sftwaretpetr

The top three sectors for investor

signals (software, financial services

and business services) are the sameas the top three sectors for FDI pro-

jects in 2010, suggesting that they

will continue to be the major source

of FDI in 2011 and after. The sectorsthat have a significantly highershare of investor signals than FDI

are coal, oil and natural gas; foodand tobacco; consumer products;

and textiles.

Current political instability inthe Middle East and north Africa

aside, fDi Intelligence expectsstrong growth of FDI in the coal,

oil and natural gas sector as theworld economy expands, pushing

up demand. With growing food con-

sumption in emerging markets and

rapidly rising prices, FDI in the foodand beverage sector is likely to growabove its trend growth rate. Rising

incomes in emerging markets andgradual economic recovery in devel-

oped markets are also encouraging

companies in consumer productsand textiles to expand overseas to

meet growing demand for consumergoods. fDi Intelligence also expects

growth in software and IT services,communications, automotives and

renewable energy in 2011, which is

supported by investor signals fromcompanies in these sectors.

lg-termgrwthfreat

The FDI forecasting unit offDiIntelligence has produced detailed

five-year FDI forecasts for destina-

tion countries, source countries andsectors. The headline forecast is for a

6.5% growth in greenfield FDI pro-jects in 2011, with more than 12,800

projects expected. Further growthin FDI is forecast for subsequent

years with the number of global FDI

projects reaching more than 15,000for the first time in 2014.

Ri d Jir, Brzi: h cry h rcd hr icr i rfid FDI i 2010

RIsIng InCoMesIn eMeRgIngMaRkets aReenCouRagIngCoMpanIes In

ConsuMeRpRoDuCtsanD textIlesto expanDoveRseas


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fdi outlook whole

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