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

2. March 2015 © ANIMA 2015 2 Real time information  www.anima.coop/mipo (database) www.anima.coop/mipo 6.500+ FDI recorded 2.000+ 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)

3. The FDI recovery is still awaited

4. FDI announced in the MED region 2003-2013 March 2015 © ANIMA 2015 4 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

5. FDI announced by country 2003-2012 March 2015 © ANIMA 2015 5 in M€ source ANIMA-MIPO

6. FDI dominated by 5 sectors March 2015 © ANIMA 2015 6 Investors favoured rent than industry projects

7. A more cautious approach

8. A switch of behavious favoured by the crisis March 2015 © ANIMA 2015 8 Partnerships and JV leave more room for value captation by MED countries

9. March 2015 9 From investment to trade © ANIMA 2015

10. A problem of spillovers and inclusiveness

11. The unbalanced territorial development of FDI March 2015 © ANIMA 2015 11

12. A low job efficiency of the sectors providing FDI March 2015 © ANIMA 2015 12 Top 5 FDI sectors (50% of FDI 2003-2012): Energy, Public Works, Cement, Bank, Tourism Sources: ANIMA MIPO Job efficiency ratio by FDI sector in the MED-11 countries

13. EU investment is far below its potential

14. Europe n°2 for the second consecutive year March 2015 © ANIMA 2015 14 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

15. EU investors: still numerous but small projects March 2015 © ANIMA 2015 15 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)

16. … but EU FDI projects have more spillovers (1) March 2015 © ANIMA 2015 16 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 2003-2013) SMEMajor Co. Transnational Co.FundAverage Europe3.56.31.80.42.7 MED-117.32.61.71.62.5 Gulf0.52.4 0.42.1 Other countries2.62.81.82.22.0 USA-Canada0.80.31.60.31.1 Average2.43.11.90.52.2

17. EU FDI projects have more spillovers (2) March 2015 © ANIMA 2015 17... 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

18. March 2015 18 EU present the larger potential for partnership © ANIMA 2015

19. Thank you for your attention ANIMA INVESTMENT NETWORK 11b rue Saint Ferréol 13001 Marseille – FR T. +33(0) 4 9611 6760 www.anima.coop Emmanuel NOUTARY emmanuel.noutary@anima.coop