FDI trends in the South Mediterranean countries Euromed Invest Academy Emmanuel Noutary, General Delegate ANIMA Investment Network Belgrade, 24 March 2015

March 2015 © ANIMA Real time information  (database) FDI recorded Business partnerships 11 countries monitored 4 quarterly trend releases Used for country benchmarking, economic monitoring, business prospecting, media analysis and research papers Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, Tunisia, Turkey Projects announced since 2003… 25 qualification criteria: sector, type of company, target and origin country, amounts involved, jobs created, etc. 1 annual report Mediterranean Investment and Partnership Observatory (ANIMA – MIPO)

The FDI recovery is still awaited

FDI announced in the MED region March 2015 © ANIMA The region still suffers from the crisis second round effects A certain resilience in 2011 and 2012 but a drop in number of projects (-30%) A switch of FDI project type in 2013 (larger) to be monitored  Oiuiouoiuoiuouo  Iouiooiuoiuouoiu  iuiouoiuoiuoiuoiuouo

FDI announced by country March 2015 © ANIMA in M€ source ANIMA-MIPO

FDI dominated by 5 sectors March 2015 © ANIMA Investors favoured rent than industry projects

A more cautious approach

A switch of behavious favoured by the crisis March 2015 © ANIMA Partnerships and JV leave more room for value captation by MED countries

March From investment to trade © ANIMA 2015

A problem of spillovers and inclusiveness

The unbalanced territorial development of FDI March 2015 © ANIMA

A low job efficiency of the sectors providing FDI March 2015 © ANIMA Top 5 FDI sectors (50% of FDI ): Energy, Public Works, Cement, Bank, Tourism Sources: ANIMA MIPO Job efficiency ratio by FDI sector in the MED-11 countries

EU investment is far below its potential

Europe n°2 for the second consecutive year March 2015 © ANIMA Europe = 29% of FDI amounts in 2013 compared to 45% until 2011: lowest year of the last decade Gulf countries take the lead (37% of invested amounts)  North America stable = 20%  BRICs are volatile = 12,5% in 2013  Intra-MED FDI hardly exist

EU investors: still numerous but small projects March 2015 © ANIMA Europe = still 40% of announced FDI in 2012 in number of projects, but the European leadership is faltering Gulf projects are €182m in average (compared to €65m for all project in average, and EU and US projects are €46-48m in average)

… but EU FDI projects have more spillovers (1) March 2015 © ANIMA European FDI projects create more jobs by €million invested Number of jobs created by million Euros invested, by region of origin and by type of company (Source: ANIMA-MIPO ) SMEMajor Co. Transnational Co.FundAverage Europe MED Gulf Other countries USA-Canada Average

EU FDI projects have more spillovers (2) March 2015 © ANIMA and they have a greater contribution to economic diversification: European companies are the top investors in most of the strategic sectors for the MED countries

March EU present the larger potential for partnership © ANIMA 2015

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