BACK ISSUES » 2008 » OCT/NOV
Editor's note: A tangled web that is courting chaos

While the number of disputes over crossborder investment agreements rises, the lack of an agreed, overarching system to resolve them is causing confusion and keeping lawyers busy, with no clear resolution in sight, writes Courtney Fingar.

Mark Hurd, HP chief executive

HP expected to move jobs East

As IT giant HP cuts staff by 7.5%, the industry predicts a migration of resources to growth markets such as India.

Reform hits a record high

Worldwide regulatory reforms have reached a record high this year, according to the International Finance Corporation (IFC).

PwC emerging markets focus

Management consultancy PricewaterhouseCoopers has announced a global restructuring to follow its multinational client base into emerging markets.

PRIVATISATION NEWS

Governments around the world are interested in improving the governance of the state-owned enterprises remaining in their portfolios to raise the quality of services offered, improve performance and reduce drain on public finances.

In Dispute: No end in sight for Oxy versus the Ecuadorian government

Round two of a battle between California-based Occidental Petroleum and the Republic of Ecuador is heating up.

Faltering markets hit foreign investment

Chaos in global financial markets and a more general economic downturn will have a significant effect on crossborder investment in the next two years.

Olaf Swantee, head of Orange Mobile

Orange blossoms

Olaf Swantee, head of Orange mobile, talks to Lara Williams about the company’s global plan for local markets.

When the top job at Orange Mobile became available last year, Olaf Swantee’s 17 years of international experience as a senior executive within the IT industry clinched the appointment. Mr Swantee’s experience spanned a transformational period of global consolidation in the IT industry, during which time companies searched for crossmarket synergies.

A safe bet

Governments have been slow to clarify regulation of the online gaming industry, which leaves many issues around global expansion open to interpretation. So Betfair is playing it safe, writes Lara Williams.

Perfect landing

A company’s first few months in a developing country are the most important, because this is when it will scope out the territory and choose a business partner, says Navjot Singh.

FDI in the US remains stable

With its asset values decreasing and its economy stalling, the US is boosting incentives for inward investors.

SEC streamlines accounting rules

Global accounting processes for US companies making international investments are to be streamlined due to a proposal by the US Securities and Exchange Commission (SEC) to switch to international accounting rules.

EADS contract bid continues

Franco-German aerospace defence company EADS has been dealt a fresh blow as the competition for a $35bn US AirForce contract has been delayed until after the US presidential elections.

LATEST INVESTMENTS
View from America

In the hard-fought run-up to the US elections, polls and predictions have combined to indicate that the outcomes for the White House and even for Congress may remain close until the very end. However, regardless of outcome, there is one policy area where investors can expect an avalanche of initiatives: energy.

Barack Obama

Productivity drive

Dan Tarullo, senior policy adviser for Democrat candidate Barack Obama, speaks to Lara Williams about the impact an Obama presidency would have on foreign investment in the US.

Almir Guilherme Barbassa, Petrobras chief financial officer

Oil and water

The prospect of government meddling in the Tupi offshore fields has caused much alarm – but not for Petrobras, CFO Almir Guilherme Barbassa tells Courtney Fingar.

Marcelo Ebrard Casaubon, Mexico City mayor

Big and clever

If Mexico City were a country, it would have the 30th largest economy in the world. The city’s mayor and finance secretary tell Jason Mitchell about where the abundant inflows of foreign money go.

Tesco pairs with Tata in India

Retail giant finally follows rivals into the subcontinent in an outlet joint venture with local company Tata.

View from Asia

It’s easy to be bearish on Asia, with its dependence on the US, disasters, disease and so on. The recent triple whammy of the Lehman Brothers bankruptcy, Merrill Lynch takeover and AIG rescue has also shaken Asian markets briefly.

Vietnam licenses foreign banks for the first time

HSBC and Standard Chartered will be the first foreign banks to open operations in Vietnam as the country liberalises its banking sector.

UK firm goes into Singapore

UK acrylic products manufacturer Lucite is opening a $500m plant in Singapore in October, where it will begin a new process for cheaper acrylic.

LATEST INVESTMENTS
India’s fading dream

Industrialist and Infosys chairman N R Narayana Murthy talks to Michelle Price about the challenges for the Indian IT services sector, and the economy in general.

Margarito Teves

Still on track

The impact of the international slowdown on the Philippines economy has been more severe than expected, but revenue collections and overseas remittances remain strong, the finance secretary tells Ian Gill.

Y Bhg Dato’ Jalilah Baba, MIDA director-general

Weathering the storm

MIDA’s new director-general, Y Bhg Dato’ Jalilah Baba, tells how Malaysia is withstanding the credit crunch with a robust performance in attracting foreign investment.

Land of opportunity?

Tightening land supply policies add new constraints to investing in China, say James Ku and Amanda Zheng.

Ready for take-off

Korea has succeeded in making itself a more conducive place to do business with an eye on using FDI revenues to kick-start its flagging economy, writes Jules Stewart.

A 21st-Century Global Business Centre

The Korean government is in the midst of a three-year plan to make the country more business friendly as it looks to realise its vast FDI potential.

Michael Glos, German economics minister

Germany limits non-EU money

German government denies accusations of protectionism and says it is open to foreign direct investment.

Nokia prepares the way for next investor

Mobile phone manufacturer Nokia is working with the North Rhine Westphalia authorities in Germany to enable the smooth transfer of employees to a new investor after it moved manufacturing operations to Romania.

Sweden cuts taxes to save falling FDI

The Swedish government has cut corporate tax and introduced measures to reduce employment costs in a bid to redress a dramatic drop in FDI in the country over the past two years.

LATEST INVESTMENTS
View from Europe

We are now into the second year of the credit crunch, and the financial rollercoaster seems to be as bumpy as ever. It is not just the credit crunch which our European economies have been grappling with, but also rising prices in raw materials, fuel and food. The word ‘recession’ is now on everyone’s lips and GDP growth in many economies is now at nano-scale. So what’s the story on FDI into Europe?

Ábel Garamhegyi, Hungary's state secretary for development and economy

The easy option

As alternative sources of cheap labour spring up, the Hungarian state secretary for development and economy insists that if his country cannot remain a low-cost destination it will be a low-hassle one. By Lara Williams.

Out from the crowd

The European Aeronautic Defence and Space company made an unconventional decision by locating an R&D centre in South Wales – but it had sound staffing and government-relations reasons. Lara Williams reports.

Brand goals

Austria and Switzerland hope the attention from Euro 2008 will make them yet more attractive to foreign investors. Polly Botsford reports.

Big-name draw

Ford, Coca-Cola, Hugo Boss and GE Healthcare are among the global big hitters unable to resist the lure of Turkey’s skilled, dependable workforce and its proximity to key European, Asian and African markets, reports Karen E Thuermer.

Dr Saad Barrak, Zain CEO

Kuwaiti telco off to Bahrain

Telecoms company Zain demonstrates widespread lack of confidence in Kuwait’s governance by decamping abroad.

World Bank pulls out of Chad oil plan

Investor confidence in one of Africa’s largest capital investments to date was seriously knocked as the World Bank pulled out of a $4bn pipeline project in Chad.

Vodafone to restructure

UK mobile giant Vodafone stepped up its advance into Middle East and African markets with an emerging market restructuring designed to streamline costs and facilitate further expansion.

LATEST INVESTMENTS
View from the Middle East & Africa

Investors are actively looking for exotic places sheltered from financial havoc and recession after the Manic Monday that saw markets plunge and banks in peril.

William Egbe, the president of the Coca-Cola’s African operation

The world’s local brand

The president of Coca-Cola’s African operations talks to Lara Williams about covering such a vast continent.

Sheikh Mohammed, the United Arab Emirates vice-president and prime minister

Leading the way

Its ruler is steering Dubai towards a radically different financial model that Europe and the US might do well to learn from. Stephen Timewell reports.

Mixed signals

As FDI rises, export market share falls. As peace comes to some countries, violence intensifies in others. What is an investor to make of Africa? Michael Deibert reports.

Out of order

Luke Peterson examines the crisis in the international investment arbitration system.

Is there a backlash brewing against the international legal system used by states and investors to settle FDI disputes? For several years, lawyers and academics have been debating whether the current system – consisting of more than 2600 bilateral investment protection treaties – is ensuring the security and protection of investor assets and contracts without unnecessarily handcuffing the sovereignty of governments to regulate business activity within their borders.

London’s creative victory

The fDi Creative Industries Competitiveness Index has ranked London above New York, while the US is listed as the country of choice for ICT sector investors.

On the flip side

While the the world’s major financial centres are in disarray, smaller markets are reaping the benefits, says Charles Piggott.

Filtering through the noise

As the cacophony of economic development organisations shouting about their locations grows louder, many corporate investors are tuning out, writes Mark O’Connell.

Creative industries set for record year

Globally, the number of investment projects and jobs in the creative industries cluster has been growing, and 2008 looks set to surpass all other years.

All eyes on Dubai

Cityscape Dubai is the flagship for celebrating the ever-changing trends and achievements in world real estate, writes Rohan Marwaha.

No let up in Gulf success story

While the rest of the world struggles in the midst of the subprime crisis, the Middle East property market continues to prosper and growth in the Gulf shows no signs of slowing down. Lara Williams reports.

UAE: The ripple effect

Dubai’s rapid urban development is being repeated in Abu Dhabi and Ras Al Khaimah, making the UAE one of the world’s fastest growing business centres, says Lara Williams.

Dubai: The race to build

In Dubai’s frenetic property market, supply is still outstripping demand, despite the many projects nearing completion. Lara Williams reports.

Jordan: Popular appeal

The resilient Hashemite Kingdom is enjoying an upturn with increased interest and investment, writes Nadine Marroushi.

Qatar: The cost of growth

Doha is enjoying an unprecedented boom, but inflation and a squeeze on residential property are causes for concern, writes Eleanor Gillespie.

Saudi Arabia: Nation building

The region’s largest real estate market has a dizzying array of new projects that are changing the urban landscape, write Dagmara Ginter and Mark Ford.

Abu Dhabi gaining on Dubai

Emirates vying with each other to boost stocks of residential housing units.

Register for E-Alerts

Subscription Contacts Privacy policy Terms and Conditions Webmaster

Mailing address: Financial Times Ltd, Number One Southwark Bridge, London, SE1 9HL, United Kingdom

© The Financial Times Limited 2009