São Paulo – Brazil has climbed from 43rd to 36th in the Global Venture Capital and Private Equity Country Attractiveness index, which analyses the attractiveness of 116 countries to foreign investment. Among the Arab nations in the study, Saudi Arabia, Egypt, Tunisia, Kuwait and Morocco each climbed at least ten positions in this study, elaborated by Spanish business school Iese, under Navarra University, and by consultancy company Ernst & Young. The research was disclosed on Wednesday (19).
The top rung in the ranking is once again held by the United States, for the third year running. Canada, the United Kingdom, Japan, Singapore, Hong Kong, Australia, Sweden, Germany and Switzerland top the list of ten most attractive countries for foreign investment. Among the nations in the Brics, Brazil is only ahead of Russia: China is in the 22nd place, South Africa in the 28th place and India in 32nd. The Russians are in 43rd.
To determine the position of countries in the index, the study takes into consideration the evolution obtained in six aspects from 2008 to 2012: economic activity, capital market reach; taxes; investor protection and corporate governance; human and social development; and entrepreneur culture and business opportunities. Within each of these aspects, other items are evaluated. Each one has specific importance in the final evaluation.
In corruption, for example, Brazil climbed from the 65th to the 58th position. The country has also evolved in terms of education and human capital and in social aspects. On the other hand, there was worse performance in innovation and tax. From 2010 to 2011, the country had climbed 14 positions in the ranking.
The Chinese stood out in the area of capital markets and South Africa in the establishment of a legal structure. On the other hand, the countries in the Brics still need to evolve in aspects of corporate governance, protection to investment, corruption and low investment in innovation.
Arabs
Nations in the Middle East and North Africa also presented evolution in the ranking, in comparison with last year’s edition of the study. Saudi Arabia, Egypt, Tunisia, Morocco and Kuwait climbed at least 10 positions each.
“Even if Tunisia’s and Egypt’s economic growth prospects have been reduced as a result of the recent political turmoil, their enormous ranking gains are due to the strong development of their capital markets and, in case of Tunisia, of its improvement in corporate governance quality. Morocco has favourable economic growth prospects and also increased M&A and debt market liquidity. Saudi Arabia saw substantial improvements in its economic outlook, M&A market, and human and social environment,” says the study.
Among the Arab nations, the one in the best place is Saudi Arabia, in the 28th position, ahead, for example, of Poland, Portugal, Italy and India. The United Arab Emirates comes in the 39th place in the index. Kuwait is in 42nd place and is followed by Tunisia (49th), Jordan (52nd), Morocco (53rd), Oman (54th), Egypt (56th), Bahrain (61st), Algeria (83rd), Syria (102nd) and Mauritania (113th).
*Translated by Mark Ament
