Latest news with #WorldInvestmentReport
Mint
29-06-2025
- Business
- Mint
The investment story in charts: How South-East Asia is defying global FDI trends
The movement of capital across countries is going through a tumultuous phase. Data released in mid-June by a United Nations body on trade and investment shows that global foreign direct investment (FDI), adjusted for probable conduit financial flows (or capital flows from one country, through an intermediate country), fell 11% in 2024, marking its second consecutive decline. This year, US President Donald Trump has triggered a tariff war, which could have more ramifications on FDI. In his previous term, Trump dealt a blow to the functioning of the organisation that frames rules for global trade by blocking appointments to its dispute settlement body. There are other triggers. The economic rivalry between the US and China—the world's top two economies—is forcing companies with manufacturing facilities in the communist nation to look for alternatives to ensure supply chain continuity. India, the world's fifth-largest economy that is currently seeing a demographic dividend, would have liked to be a frontrunner to draw such foreign capital. However, the latest World Investment Report by the UN Trade and Development (UNCTAD) shows that even as Asia remained the largest recipient of FDI in 2024 (40% share), South-East Asia was the only sub-region that grew in 2024. Each of the top seven FDI draws in South-East Asia recorded FDI growth in 2024, led by the Philippines, Malaysia and Thailand. In manufacturing, the global rebalancing of locations by multinationals is driving greenfield FDI in South-East Asia, especially in the digital economy. As many as five South-East Asian countries (Singapore, Vietnam, Indonesia, Malaysia and Thailand) figure in the top 10 countries for FDI in the digital economy. FDI decoupling Outside of South-East Asia, North America and Africa showed higher growth. North America was driven by FDI inflows into the US towards high-tech (semiconductors) and clean energy sectors. The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors Act), passed in the US in 2022, was an enabler. "...among the top 10 highest-value greenfield projects announced globally in 2024, four were in semiconductor manufacturing, with three of them located in the US," said the latest World Investment Report by the UNCTAD. But that is an anomaly. Global trade, facilitated by the easy movement of FDI, has lifted millions out of poverty in developing economies. But in recent years, FDI has decoupled from global GDP and world trade (exports of goods and services). The decline in FDI in 2024 is more pronounced in sectors vital for development: infrastructure (35% over 2023), renewable energy (31%), water, sanitation and hygiene (30%) and agrifood systems (19%). Chinese outreach The other challenge is the concentration of FDI in a few countries. Ten major emerging markets received 75% of FDI flows to the developing world—the order being China, Brazil, Mexico, Indonesia and India. For most of this century, companies in China have received more FDI than they have invested in other countries. However, in recent years, this has reversed. In the 11 quarters since July-September 2022, China has recorded a negative net FDI figure. China was a significant investor in several South-East Asian countries in 2024, according to reports specific to these countries. China was among the top three foreign investors in Vietnam, accounting for the largest share of FDI projects (28%). In Malaysia, too, China was among the top three FDI investors. In Indonesia, which drew FDI in metal refining and mining, China was the second-largest FDI investor. Digital play Digital is the fastest-growing FDI segment, increasing its share in all greenfield FDI globally from 20% in 2020 to 28% in 2024. This covers both the core digital space (digital infrastructure like data centres, ICT manufacturing and cloud service) and the narrow-scope digital space (like sharing economy, e-commerce, fintech and artificial intelligence services). The top 100 ICT companies by sales have about 40% of their assets outside their home country, and South-East Asia has been a top draw for them. One challenge in the digital space is concentration. Among the top 100 ICT companies by sales, the top five companies account for about 26% of this set's sales. Concentration is also seen at the country level. There are 29 companies from the US, followed by 13 apiece from China and Taiwan, and 12 from Japan. In a fickle policy environment, many of these companies—including Apple, the biggest of them—are reviewing their FDI strategy. is a database and search engine for public data
Biz Bahrain
21-06-2025
- Business
- Biz Bahrain
Bahrain Hosts Launch of the World Investment Report 2025 Focused on International Investment in the Digital Economy
The MENA Centre for Investment, in collaboration with UNCTAD (United Nations Conference on Trade and Development), proudly hosted the Bahrain launch of the World Investment Report 2025 today, 19th June 2025, at the Swiss-Belhotel Seef. This year's report, titled 'International Investment in the Digital Economy,' explores the growing importance of digitalization in shaping global investment flows. The report highlights key policy considerations for attracting digital investment and ensuring inclusive and sustainable development. The event featured a special presentation by Dr. Astrit Sulstarova, Chief of the Trends and Data Section at UNCTAD's Division on Investment and Enterprise, shared highlights and key findings from the report. His remarks underscored the importance of data-driven strategies, robust digital infrastructure, and enabling regulatory environments in the global investment landscape. The launch event brought together senior representatives from leading government and private sectors. Their participation reflects Bahrain's strong commitment to digital transformation and its positioning as a regional hub for innovation and investment. Dr. Zakaria Hajres, Chairman of the MENA Centre for Investment, reaffirmed the Centre's commitment to collaborating with UNCTAD in launching the World Investment Report annually and in strengthening Bahrain's position as a leading global destination for investment, and emphasised that Bahrain's inclusion in this prominent report reflects the success of national policies in creating a business-friendly and attractive investment environment. Dr. Hajres noted that the report highlights the Kingdom of Bahrain's progress across numerous indicators, pointing out its significance as investors around the world regard it a key reference when making investment decisions. Ms. Maryam Mattar of the MENA Centre for Investment highlighted the vital role of regional partnerships and public-private collaboration in advancing digital transformation and maximising the impact of digital investments, stressing the need for coordinated efforts to align with strategic priorities and drive progress towards the Sustainable Development Goals in the MENA region. The event concluded with an invitation for ongoing dialogue and cooperation among policymakers, development institutions, and private sector leaders to align investment strategies with the evolving demands of the digital economy. The report is considered one of the most prominent global publications in its field, offering a comprehensive analysis of foreign direct investment trends worldwide, while also examining developments at both the local and regional levels and highlighting emerging measures aimed at enhancing the role of investment in advancing sustainable development.
Egypt Independent
20-06-2025
- Business
- Egypt Independent
Egypt ranks 9th globally, 1st in Africa for FDI in 2024
Rania al-Mashat, Egypt's Minister of Planning and Economic Development and International Cooperation, announced the launch of the World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD). The report monitors key trends in global Foreign Direct Investment (FDI) in 2024 and highlights Egypt's position among the most attractive countries for investments, driven by the Egyptian government's reforms. In a statement to the Egyptian Cabinet, the Minister revealed that the report placed Egypt ninth globally and first in Africa among the most attractive countries for FDI during 2024, attracting $47 billion in investments. The Minister clarified that this marks a significant leap for Egypt from its 32nd global ranking in 2023, which recorded $10 billion in FDI. This reflects the government's prioritization of empowering the private sector and attracting investments. She also noted the positive growth rate in the third quarter of the current fiscal year, which exceeded expectations. Al-Mashat highlighted the report's positive focus on developments in Africa, particularly in Egypt. The report specifically spotlighted the Ras El Hekma deal as an innovative model comprising two components: direct investment and a debt-swap mechanism. She added that this model came at a crucial time and demonstrates the state's ability to utilize innovative tools to attract financing and investments, deploying them in line with its national priorities. She also referred to the UNCTAD Secretary-General's address, which emphasized the importance of mobilizing financing for the private sector. In this context, Egypt hosted a major conference earlier this week on development finance and enhancing the private sector's role in achieving growth and creating job opportunities. This conference also served as a genuine platform to embody the principle of cooperation between international financial institutions and national governments in supporting the investment and development agenda. Within this framework, she affirmed that over the past five years, Egypt has successfully mobilized more than $15.6 billion for the private sector. She underscored that the relationship between trade, investment, and development is an integrated and interconnected one, and that promoting private and foreign investments is considered one of the primary means to achieve comprehensive and sustainable growth.
See - Sada Elbalad
20-06-2025
- Business
- See - Sada Elbalad
Egypt Rises to 9th Globally in FDI Inflows amid Record $47 Billion Surge
Taarek Refaat Egypt has made a dramatic leap in the global investment landscape, ranking 9th worldwide in foreign direct investment (FDI) inflows for 2024, according to the World Investment Report released by the United Nations Conference on Trade and Development (UNCTAD). FDI into Egypt surged to $47 billion last year, up from just $10 billion in 2023—catapulting the country from 32nd place to the top 10 globally. The report credits this extraordinary 373% increase primarily to mega-deals and landmark projects, particularly the Ras El Hekma coastal development initiative. The United States retained its position as the world's leading destination for FDI, followed by Singapore, Hong Kong, China, Luxembourg, Canada, Brazil, and Australia. Egypt was the only African and Arab country to appear in the global top 10. A joint statement by Egypt's Ministries of Investment, Planning, and International Cooperation—released in collaboration with UNCTAD—highlighted the broader regional momentum, noting that FDI to Africa rose by 75% in 2024, reaching $97 billion, up from $55 billion in 2023. Egypt led the continent in FDI growth, followed by Ethiopia, Côte d'Ivoire, Mozambique, and Uganda. Despite Egypt's exceptional performance, the UNCTAD report paints a more cautious global picture: total FDI flows worldwide fell by 11%, from $1.67 trillion in 2023 to $1.5 trillion in 2024. This decline was driven largely by a 22% drop in FDI to advanced economies, amid rising geopolitical tensions and tighter monetary policies. Developing countries managed to maintain stable inflows overall, while the least developed countries (LDCs) saw a 9% increase, signaling selective resilience. Interestingly, the number of new investment projects worldwide increased slightly by 3%, reaching 19,356, suggesting that while capital volumes are down, investor appetite for greenfield projects remains intact. Economists say Egypt's performance reflects a broader strategic shift toward large-scale, state-backed development projects aimed at transforming the country into a regional investment hub. Whether this momentum can be sustained will depend on regulatory clarity, infrastructure readiness, and macroeconomic stability. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
Daily News Egypt
19-06-2025
- Business
- Daily News Egypt
Egypt jumps to 9th in global FDI rankings as Africa sees rebound
Egypt's foreign direct investment (FDI) surged in 2024, making it the ninth-largest recipient globally and the main driver of a rebound in investment across Africa, according to a UN report launched in Cairo on Thursday. The World Investment Report 2025 from UN Trade and Development (UNCTAD) showed that Egypt's performance contrasted with a second consecutive annual decline in global FDI when excluding volatile financial flows. The global outlook for 2025 remains negative amid heightened investor uncertainty. FDI inflows to Africa rebounded by 75% in 2024 to $97bn, largely due to flows into Egypt. This increased the continent's share of global FDI to 6% from 4% the previous year, and its share of developing-country inflows to 11% from 6%. Egypt was identified as the primary driver of this turnaround, with a mega-project in urban development at Ras El-Hekma being a significant contributor. Globally, FDI rose 4% in 2024 to $1.5 trillion, but UNCTAD noted this headline figure was inflated by volatile flows through conduit economies. When these are excluded, global FDI registered an 11% decline. The report also found that investment in sectors related to the Sustainable Development Goals (SDGs) in developing countries fell by 25–33% across infrastructure, renewable energy, water and sanitation, and agrifood systems. Only the health sector saw growth, though from a small base. 'This year's findings call for renewed efforts to mobilize private investment for sustainable development, especially in economies facing structural constraints,' said Richard Bolwijn, Director of UNCTAD's Investment Research Branch. While Africa experienced an overall FDI rebound, the report detailed a mixed picture across the continent. Announced greenfield projects fell in both number, by 5%, and value, by 37%, in most countries. Cross-border mergers and acquisitions turned negative, resulting in net divestments of $1.5bn compared with net investments of $9.5bn in 2023. However, announced international project-finance deals in Africa increased in value by 15%, boosted by a megaproject in Egypt, even as the number of such deals dipped by 3%. In Egypt, which jumped from 32nd to 9th place among global FDI recipients, project-finance commitments doubled, supported by large-scale investments in energy and transport infrastructure. The country also defied the continent-wide decline in announced greenfield projects. The report identified North Africa, led by Egypt, as the main growth engine for FDI on the continent. The findings were presented at an event hosted by the Government of Egypt to mark the report's launch. 'In a year marked by shifting global investment patterns, Egypt's consistent presence on the investment landscape, as captured in the World Investment Report, comes as we double down on an ambitious reform agenda that places industrial production, exports, and foreign direct investment at the heart of our economic development model,' said Dr Rania Al-Mashat, Egypt's Minister of Planning, Economic Development & International Cooperation. 'Our focus remains clear: unleashing private sector potential through structural reforms that foster quality growth and resilience by driving job creation, boosting productivity and increasing value-added.' Eng Hassan Elkhatib, Minister of Investment and Foreign Trade, added: 'Egypt is writing a new investment narrative, coupling deep structural reforms and clear, predictable policies with a competitive, transparent business climate and a dynamic private sector. This vision reinforces Egypt's growing role in the regional and global investment landscape, transforming the country into a hub of opportunity and connectivity.' The report also examined policy trends, finding that the number of investment policy measures reached its second-highest level on record in 2024, at 174. Of these, 78% were favourable to investors, although many were shaped by geopolitical and industrial-policy objectives. In the digital economy, the report noted that investment is expanding rapidly but remains highly concentrated, with data centres and fintech attracting most of the flows and leaving significant regional gaps. The launch event in Cairo included a technical briefing on the report's findings and a discussion with representatives from the private sector, international organisations and academia.
