FDI trends in the South Mediterranean countries Euromed

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

Mediterranean Investment and Partnership Observatory (ANIMA – MIPO) 11 countries monitored Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, Tunisia, Turkey 6. 500+ FDI recorded Projects announced since 2003… 2. 000+ Business partnerships 4 quarterly trend releases 1 annual report 25 qualification criteria: sector, type of company, target and origin country, amounts involved, jobs created, etc. Used for country benchmarking, economic monitoring, business prospecting, media analysis and research papers Real time information www. anima. coop/mipo (database) March 2015 © ANIMA 2015 2

The FDI recovery is still awaited

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

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

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

A more cautious approach

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

A problem of spillovers and inclusiveness

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

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

EU investment is far below its potential

Europe n° 2 for the second consecutive year 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) ´ ´ ´ March 2015 North America stable = 20% BRICs are volatile = 12, 5% in 2013 Intra-MED FDI hardly exist © ANIMA 2015 14

EU investors: still numerous but small projects Europe = still 40% of announced FDI in 2012 in number of projects, but the European leadership is faltering Gulf projects are € 182 m in average (compared to € 65 m for all project in average, and EU and US projects are € 46 -48 m in average) March 2015 © ANIMA 2015 15

… but EU FDI projects have more spillovers (1) European FDI projects create more jobs by €million invested SME Major Co. Transnational Co. Europe 3. 5 6. 3 1. 8 0. 4 2. 7 MED-11 7. 3 2. 6 1. 7 1. 6 2. 5 Gulf 0. 5 2. 4 0. 4 2. 1 Other countries 2. 6 2. 8 1. 8 2. 2 2. 0 USA-Canada 0. 8 0. 3 1. 6 0. 3 1. 1 Average 2. 4 3. 1 1. 9 0. 5 2. 2 Fund Average Number of jobs created by million Euros invested, by region of origin and by type of company (Source: ANIMA-MIPO 2003 -2013) March 2015 © ANIMA 2015 16

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

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

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