São Paulo – The intended foreign direct investment (FDI) has dropped in the Mediterranean, according to a study by the Anima-Mipo (Mediterranean Investment Project Observatory), the research branch of the investment agency in the region. The study, which takes into account plans for investment in Tunisia, Egypt, Syria, Libya, Lebanon, Jordan, Israel, Turkey, Algeria and Morocco, points towards reduction in the number of projects announced in the first half of this year.
In the first six months of 2010, 430 projects with foreign capital were announced, while in the same period this year, there were 322. The total for last year was 838 projects. In terms of revenues, the investment plans for the first half of 2011 rose a little, to 15.2 billion euros, as against 14.5 billion euros in the same period in 2010 and 38 billion euros throughout last year.
According to the Anima-Mipo, the lower number of projects is the effect of the revolutions in the region, which took FDI, in some countries, to the same level as in 2009, during the international financial crisis. The reduction, according to the study, is substantial in Tunisia, Egypt, Lebanon, Libya, Syria and Jordan. The scenery is stable in Algeria and there was some expansion, according to Anima-Mipo, in Morocco, Israel and Turkey.
In Tunisia and Egypt the reduction in the foreign investment intention was around 40%. However, FDI in the region has been announced, including projects in the oil and gas sector in Tunisia by the Austrian OMV, the Italian ENI and the British BG Group. Figures disclosed by the Tunisian Foreign Investment Promotion Agency (Fipa) show that the situation started to improve in the country in July. In Egypt, ten projects were announced in June.
In Libya no project has been detected since mid-January this year, when he Qatar National Bank (QNB) acquired the shares of institutions in the country, like the local Development Bank. In Syria, ever since the start of protests, in March, the situation has been similar, which resulted in an 80% drop in foreign direct investment in the half. In Jordan, the investment intention dropped 60% and in Lebanon, 40%. In Algeria, the situation is stable, but it is based on a low basis for comparison, as the country showed signs of turmoil in early 2010.
Among the Arab countries in the region, Morocco stands out. There was growth of 23% in FDI intention. The nation attracts the third highest number of projects, only behind Turkey and Israel. In total, foreigners, from January to June this year, announced the intention to invest 500 million euros in Morocco. Turkey leads the ranking, with 79 projects and 5 billion euros. Together, Turkey and Israel attract 60% of foreign direct investment in the region surveyed.
*Translated by Mark Ament
