BACK ISSUES » 2008 » AUG/SEPT

Courtney Fingar

Editor's note: The real impediments to foreign investment

The failure of the Doha trade talks will doubtless have tough consequences for some parties. But it should not obscure the fact that there are other, non-tariff related barriers that are equally in need of scrutiny and reform, writes Courtney Fingar.

China set to top global FDI lists

As companies seek new markets, executives say that by 2014 China will be the world’s top investment destination.

Unctad warns on diversification

The world’s poorest countries must diversify their business sectors or risk devastating consequences in the event of changing global trade patterns.

Slump sparks Volvo job cuts

Automotive manufacturer Volvo is to cut about 8% of its global workforce as sales in developed markets slump and car makers shift operations to lower-cost manufacturing destinations.

PRIVATISATION NEWS

The global infrastructure market to date is far from saturated, with infrastructure privatisation continuing to offer attractive investment opportunities for both foreign and domestic companies. In India, for example, the Ministry of Finance recently estimated about $320bn was needed in infrastructure investment between 2007 and 2012 to maintain annual growth of about 9%.

In Dispute: Argentina appeals award in light of Siemens scandal

The bribery scandal currently plaguing Siemens may call into doubt the validity of a $217m World Bank arbitration award secured in 2007 by the German multinational in a major dispute with the government of Argentina.

US scanning law may harm trade, says WCO

A US shipping container law scheduled to come into force in 2012 may impede global trade, and risks being viewed as protectionism by its international trading partners, the World Customs Organization (WCO) has warned.

Preston Chiaro, Rio Tinto’s chief executive of energy

Digging for growth

Rio Tinto is going against current thinking by ramping up coal production, but the mining group is also investing in research to reduce greenhouse gas emissions. Lara Williams reports.

Henner Gladen, Solar Millennium

Rays of hope

Solar Millennium is building its third parabolic trough power plant in Southern Spain, which will supply energy to 200,000 people, and has its sights set on expanding into the US. Lara Williams reports.

Brain over brawn

When hiring protection in an emerging market it is worth using a low-profile escort operative with local knowledge to protect intelligence-carrying employees, says Brian Adcock.

Global winner/Middle East: Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi

fDi Personalities of the Year 2008

The fDi Personalities of the Year awards recognise the political and business leaders around the world who have been the most proactive, dynamic and innovative in encouraging foreign investment and improving the business environments of their jurisdictions. Regional winners are selected for Africa, Asia, Europe, Latin America, the Middle East and North America; out of these candidates a global winner is chosen. Meet this year’s standouts.

Middle East: Sheikh Mohamed Bin Zayed Al Nahyan , Crown Prince of Abu Dhabi

The private sector did not exist in the emirate of Abu Dhabi three years ago, according to chamber of commerce president Salah Salem Bin Omeir Al Shamsi. “The government’s vision is for the private sector to lead the development of Abu Dhabi to create a true global capital,” he says, crediting Abu Dhabi’s successful economic growth in recent years to the leadership of his royal highness the crown prince of Abu Dhabi.

Africa: José Pedro de Morais, Angola’s finance minister

Angola’s finance minister José Pedro de Morais is a man of action in a continent that is so often dogged by the absence of advancement.

The minister has been at the forefront of rebuilding his country’s fortunes following a 27-year civil war that ended in 2002, from one of Africa’s poorest nations to one of the continent’s fastest-growing economies.

Asia: Vikrom Kromadit, Chief Executive of Amata, Thailand

Vikrom Kromadit, chief executive of Thai industrial estate developer Amata Corporation, lives in a floating house in the middle of a lake in a national park in Thailand. From there, in addition to running his publicly listed company, he pens a series of autobiographical self-help books; he also hosts a popular call-in radio show called CEO Vision.

Europe: Santiago Cortés, CEO of Hewlett Packard Spain

Knowing that innovation is the path to succeeding in a knowledge-based global economy is crucial; making it an economic reality is just as important though not quite so straightforward.

Latin America: Alessandro Teixeira, Head of ApexBrazil and WAIPA

Brazil compounded its position as Latin America’s top investment destination in 2007, with a leap of almost 84% in FDI on the previous year.

Brazil won a $34.6bn share of Latin America’s $106bn incoming investment for 2007, making it the most significant period of growth in FDI that Brazil has ever seen.

North America: Margie Brown, President and CEO of CIRI, Alaska

When the US government negotiated a final settlement with its indigenous groups in 1971, native peoples in Alaska chose not to go onto reservations like those in the continental US. Instead, they opted for a more businesslike arrangement – one that has paid huge dividends in the years since.

Canada bolsters Latam FDI stock

Canadian companies boost Latin America and Caribbean presence in financial services, mining and manufacturing.

Foreign worker quotas criticised

US immigration laws threaten to drive away foreign investors looking to make greenfield investments in the high tech and biotechnology sectors, government officials have warned.

US Air Force contract rerun

The competition for a $35bn US Air Force contract has been reopened after the initial process, which saw Franco-German firm EADS win the contract, was declared flawed by Congress.

LATEST INVESTMENTS
View from America

The US presidential campaign is moving toward full velocity, and its rhetoric may have an impact on future conditions for FDI into and out of the US. Several primaries were characterised by what some called pandering to organised labour’s suspicions of foreign trade, particularly NAFTA.

Carlos M Gutierrez, US commerce secretary

Race against time

In the final months of the Bush administration, securing trade agreements with Colombia, Panama and Korea are top of the agenda, the US commerce secretary tells Courtney Fingar.

Arnold Schwarzenegger, Governor of California

Political muscle

Governor of California Arnold Schwarzenegger talks exclusively to Courtney Fingar and Lara Williams about why he welcomes challengers to the state’s crown as the global leader in the biotech industry.

Pro-growth agenda

As the US presidential race heats up, Courtney Fingar speaks to Douglas Holtz-Eakin, senior policy adviser for Republican candidate John McCain, at campaign headquarters in Virginia.

Governor Sarah Palin

Wild about Alaska: Sarah Palin speaks

Soaring gas prices have added fuel to the debate on exploiting the US’s own national reserves. Courtney Fingar reports from Anchorage.

Dr Beatriz Nofal, president of ProsperAr

An unmisaable opportunity

Dr Beatriz Nofal, president of ProsperAr, explains why Argentina offers extraordinary investment opportunities.

New connections

Wireless technology is on the rise in the Latam markets, and leading telecoms companies plan to deploy 3G and triple play in the next decade, reports Jason Mitchell.

Starbucks takes its coffee ‘to go’

Coffee shop chain follows US closures with a huge withdrawal from Australian market, citing poor sales.

View from Asia

One reads with increasing frequency of Asia’s disasters and diseases: Chinese earthquakes with a death toll more than 20,000, a Myanmar cyclone that left about 62,000 dead or missing, dengue fever in Singapore, Sri Lankan flash floods, Asian bird flu, and a drought that forced more than 10,000 Australian farmers off land.

Vedanta reveals expansion plans

UK mining group Vedanta Resources is planning to invest $20bn in India in the next four years to expand its metals, mining and electricity generation operations in the country.

New patent law for China

Tougher intellectual property laws being proposed in China will require foreign companies to register patents there first or risk losing legal protection of the patent.

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Ajith Nivard Cabraal, Sri Lanka’s Central Bank Governor

Pain now, prosperity later

Ajith Nivard Cabraal, Sri Lanka’s Central Bank Governor, tells Lara Williams that the central bank’s inflation-raising policies will help the country’s economy withstand the global downturn and lead Sri Lanka to a brighter future.

Asia holds the key

China is second only to the US in auto production – which explains why car manufacturer Ford plans to expand there. Lara Williams reports.

Remaining resilient

As the rest of the world struggles to come to terms with the effects of the credit crisis, Malaysia is continuing to attract record levels of foreign investment.

Beyond the sea

Spiralling costs in coastal cities are driving more foreign investors towards China’s interior. However, as David Lammie reports, transport connections will need to improve if the cost equation is to add up.

Bombardier picks Belfast

Northern Ireland wins investment from aircraft maker worth up to $1bn to build wings for latest model.

UK woos GM over electric car

US auto maker General Motors (GM) is considering Merseyside in the UK as a possible location for development of its electric car, due to be launched in North America in 2010.

Record FDI bid for Greek port

Greece is on the verge of receiving its biggest FDI to date when government plans to privatise the port of Piraeus are finalised.

LATEST INVESTMENTS
View from Europe

It’s back to nature in Europe, but with a major technology twist. European eco-industries currently employ more than two million people, account for one third of the global market and are growing by more than 5 % each year.

Fierce about free trade

Following a World Trade Organization defeat over access to developing world agricultural markets, EU trade commissioner Peter Mandelson is not to be shaken in his fight for trade liberalisation. He speaks to Lara Williams.

Jean-Philippe Courtois, president of Microsoft International

Patience pays

Jean-Philippe Courtois, president of Microsoft International, tells fDi that the company is now reaping the rewards for its decade-long expansion programme in emerging economies.

Mariana Durlesteanu, Moldova's finance minister

Zero chance

Foreign companies might want to take advantage of Moldova’s 0% corporate tax rate while the country is still outside the European Union framework, says Charles Piggott.

Northern star

Leeds is carving out a role for itself as a major destination for international financial services companies and outsourcing groups in the north of England, reports Charles Piggott.

Iraq invites bids for oil and gas

Lack of new law and US cautiousness over security fail to stop Iraq opening for business in bid to boost production.

GlaxoSmithKline enters into JV with Aspen

Pharmaceutical giant GlaxoSmithKline (GSK) is extending its portfolio in Africa in a joint venture with South African based pharmaceuticals company Aspen to boost its emerging market sales.

Standard Bank opens DRC shop

South African Standard Bank has opened a full-service branch in Lubumbashi in a bid to expand its presence in the heart of the Democratic Republic of Congo's (DRC) mining region.

LATEST INVESTMENTS
View from the Middle East & Africa

In the wake of the Union pour la Méditerranée, the creation of the Invest in Med agency is great news. The first phase of the project (2008-09) has a limited budget of €12m but big ambitions – to “foster Euro-Mediterranean trade and investment, partnership, and contribute to a sustainable economic development of the area”.

Julian Ozanne, New Forests Company (NFC)

Deeply rooted

Growing up in Africa may have lent founder Julian Ozanne an edge when it came to understanding how local business works, but setting up a sustainable forestry company also required hard work and commitment. Lara Williams reports.

Major league player

Dubai has long hosted top golf and tennis tournaments. now the development of Dubai Sports City will extend its facilities to attract most world sports, including football and athletics, writes Wendy Atkins.

Challenging perceptions

Foreign companies intending to commit long-term resources and investment to Africa must learn to distinguish real from perceived risks, says Paul Okaru.

Energising Mozambique

Although Mozambique has one of the lowest levels of electrification in southern Africa, electricity company EDM sees the country as a great opportunity for energy suppliers.

Power players

Lara Williams reports on the expansion strategies of the world’s top renewable energy investors.

Renewable forces

The fDi Renewable Energy Investment Competitiveness Indices reveal that Germany, the US and China dominate the sector.

Out of proportion

Sovereign wealth funds have come into the spotlight – and under much scrutiny – but their impact on the investment landscape has been overblown, writes Lara Williams.

A bumpy road ahead

An underfunded and inadequate infrastructure isn’t just a problem for developing countries. Can public-private partnerships provide the solution? Karen E Thuermer reports.

A clearer path to development

Haphazard development and burdensome bureaucracy have led Africa’s free zones to lag behind the rest of the world. Peter Ryan explains how better training and a more consistent approach could be the solution

Environmental tech on a high

Outpacing all other sectors in the global FDI market in year-on-year growth, environmental technology is now the sixth major sector, with record levels of job creation.

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