1. UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION INVESTMENT AND TECHNOLOGY PROMOTION A new initiative in the Mediterranean Region Project SOLIMAN Services On Line for Investment in the Mediterranean And Networking

2. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 2 However, there is increasing evidence that SMEs are exposed to foreign investment and may have an impact on it. For instance, the ability of local SMEs to provide a reliable network of components and services may determine large MNC investments. Alternatively, local SMEs can attract investment by the increasing number of foreign SMEs that are engaged in progressively internationalizing their operations and are looking for partners of similar size. SME development and industrial cooperation SME development and investment promotion are often considered as separate issues and dealt with independently.

3. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 3 On the other hand, new actors, such as provinces or cities, or industrial zones, are developing and implementing strategies and initiatives with a growing impact on shaping up the country’s overall policies. Regional Policies - Decentralisation SME development and investment promotion policies cannot any longer be drawn up solely on the basis of local conditions, on account of the fact that country economies become progressively interrelated. Policy makers must therefore adopt at least a regional perspective in order to face today’s challenges and integrate their countries in the global market.

4. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 4 Instruments to support SME development and FDI Guarantee schemes Equity funds How to stimulate local response and effectiveness Issues tackled Analysis of FDI Attracting investment in a regional context The experience of an IPA The experience of local agencies How to evaluate FDI Analysis of SME policies Examples on the relationships between SME development and FDI The experience of a MNC The appeal of clusters May SME development policies have an impact on FDI ? How to attract foreign investment in an increasingly integrated economy ? How to link technical assistance and financial assistance?

5. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 5 Egypt Morocco Tunisia Jordan Syria Lebanon IPU IPO U.K. IPO Walloon IPO France IPO Greece IPO Poland Investment Promotion Offices Investment Promotion Units IPO Italy UNIDO Investment Network in the Mediterranean

6. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 6 Investment Promotion Units (IPU), established within local institutions, assists local SMEs to develop investment projects and utilise the credit lines Technical Assistance Financial Assistance Credit lines are made available to local SMEs to purchase equipment and technology (from Italy) so as to be able to implement their investment projects UNIDO Investment Promotion Activities in the Mediterranean

7. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 7 Technical Assistance: Objectives The IPU focuses on small and medium – sized enterprises (1) LOCAL DEVELOPMENT assisting local entrepreneurs in developing and formulating investment projects (2) FOREIGN PARTNERSHIP PROMOTION promoting interaction with potential European counterparts, fostering joint ventures and other forms of industrial cooperation. Equipment and Technology Capitals IPO IPU Entrepreneurial Development Investment Proposals LocalSMEs Industrial Community

8. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 8 Familiarity with the industrial sector in target countries, perception of demands and potential for industrial cooperation Technical Assistance: Project Cycle Project formulation Investment plan development Project promotion in Europe Financial Arrangement Support Partner/Supplier Identification IPU IPO Familiarity with the European industrial sector, perception of strengths and interest in industrial cooperation Local partner identification

9. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 9 Enhance partnership/cooperation content of projects Sustain sector strategic development Sustain public private sector dialogue Sustain bank private sector dialogue Multiply impact by stimulating local investment Increase ratio Total Investment/Credit Line Disbursement Total Investment Credit Line Disbursement Local Banks Local Investors The business plan The network evaluates all project inputs through the development of business plans to assess the project’s expected cash flows and the project’s overall profitability Loans Business Plan

10. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 10 EGYPTTUNISIAJORDANMOROCCOtotal COMPANIES ASSISTED2452672242481024 PROJECTS APPROVED3133101993 INVESTMENT million €13780.67.713.5238.8 CREDIT LINE million €34.426.44.65.470.8 Investment/ Credit Line3.983.051.672.503.37 Number of Jobs expected122915152165233483 Some results

11. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 11 Local Host Institutions EgyptGAFI - General Authority For Investment JordanJIB - Jordan Investment Board LebanonIDAL - Investment Dev. Authority of Lebanon MoroccoANPME – Agence National PME TunisiaFIPA - Foreign Investment Promotion Agency API - Agence Promotion de l’Industrie Operational Scheme of an IPU IPU

12. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 12 Sustain upgrading of national institutions to enable them to: Support integration of institutions to the network to: Provide technical support to local SMEs to enable them to: attract foreign investment recommend policies deliver incentives carry out country promotion gain exposure establish business linkages cluster and network improve productivity access markets develop investment projects exchange information establish linkages develop joint projects carry out promotion

13. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 13 Knowledge and expertise accrued by IPOs and IPUs is made available via an electronic platform (portal) to a large variety of users in the target countries Company data, Investment and technology opportunities Expertise Damas IPO Paris IPO Brussels IPO Manchester IPO Athens IPU Cairo IPU Rabat IPU Tunis IPU Beirut IPU Amman IPO Rome Business Infobase Policy Infobase Country data, Policy framework, Performance of the SME sector Openess to regional integration UNIDO Exchange Platform IPO Marseille

14. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 14 Relationship of Unit with local system Industrial Districts National Financial Institutions Individual Experts Universities Chambers of Commerce Industrial Associations Individual Entrepreneurs UNIDO Exchange

15. Project SOLIMAN UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO ~ UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ~ UNIDO S U S T A I N A B L E I N D U S T R I A L D E V E L O P M E N T INVESTMENT AND TECHNOLOGY PROMOTION 15 Adoption of a common methodology allows: circulation of information comparison of data cross country benchmarking development of regional vision Policy Infobase Business Infobase Users: Enterprises + Institutions + Policy makers Search the databases, Analyse and retrieve data, Obtain on-line services Join regional debate