Brussels, 20/11/2013 (Agence Europe) - According to the recently published annual review of the Mediterranean Investment and Partnership Observatory (ANIMA-MIPO) for 2012, the Mediterranean (MED) region has been attracting less in the way of foreign direct investment (FDI), according to UNCTAD, down from 3.3% of all FDI worldwide in 2008 to 2.6% in 2012.
This relative fall in a region in which the EU is fully committed, coincides, however, with a relative improvement in absolute terms. ANIMA-MIPO says that, in 2012, “after two difficult years of struggles on the political and global economic fronts, the region registered an excellent year in terms of FDI attraction - the fourth best in the last decade. The economic resilience of MED countries is confirmed: with €37 billion of FDI announced in 2012 (a 36% growth compared to 2011), the MED countries have reached their pre-2008 crisis levels”. Conversely, the number of projects has slowly decreased to 645 (a 10% decrease compared to 2010), an indication that the projects launched have been larger than in previous years, according to the report.
These figures, which are “relatively good given the exceptional political and economic context, must however, be taken with caution”, states ANIMA-MIPO because country-by-country results indicate a strong disparities. This relative improvement is mainly down to three countries. “Israel and Turkey are asserting their leadership: these two countries are recording more than half of the FDI amounts and 43% of the projects attracted in the region in 2012. With nearly €9 billion announced, the Maghreb is flirting with its highs, especially thanks to the good figures recorded in Algeria (which accounts for more than half of the total)”.
This report also illustrates a significant development in the “redistribution” of investment sources. “Since the Arab springs, Europe (the region's historical FDI provider) is dramatically losing its leadership to the benefit of emerging countries which are demonstrating a growing interested for the region's potential”.
Over a two-year period, European FDI intentions have dropped from 45% to 26% in amounts invested. The BRIC countries (Russia, India and China in the lead) have for the first time, in 2012, become the main investors in the region with €10.7billion announced (i.e. a 28% share). The Gulf countries have initiated a notable comeback: with €9 billion announced they are running neck and neck with Europe. Mega real-estate and banking investment projects, put on hold in 2010, have resumed, since Gulf countries are increasingly willing to show their support to the region's new governments. (FB/transl.fl)