Former Mexican president Vicente Fox urges countries to ‘keep markets open and keep finance systems reliable’

Crossborder real estate investment increased 39% in 2008 in terms of project numbers, according to year-end provisional data from fDi Intelligence’s crossborder investment tracking service, fDi Markets.

Chief executives’ confidence has plunged to its lowest level since 2003, says an annual survey of CEOs by PricewaterhouseCoopers.

According to the United Nations World Tourism Organization, there has been a rapid slowdown of international tourism growth since mid-2008, reflecting the deteriorating global economic situation. Tourism, as well as related sectors (travel, hospitality, real estate and supporting infrastructure), have long been a mainstay of countries’ privatisation plans.

The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has taken its share of criticism in recent years.

IBM, France’s LVMH group and General Electric were the most prolific investors in greenfield projects overseas, according to fDi Intelligence’s crossborder investment tracking service, fDi Markets.

The gloom surrounding global markets hasn’t prevented Cushman & Wakefield CEO Bruce Mosler from looking towards a bright future. He tells Lara Williams why the company’s prospects for 2009 show some light at the end of the tunnel

US PC giant Dell is to move its manufacturing operations from Ireland to Poland in order to cut costs. The move means nearly 2000 job losses and is a blow to one of Europe’s brightest FDI stars, writes Lara Williams.

Captive centres can offer companies more control and flexibility but if mismanaged, they can consume resources, create challenges that divert management attention and create delivery problems. By Pareekh Jain and Ralph Schonenbach.

Chip-maker Intel is to close five plants, including two US facilities, due to slowing demand in the technology sector.

UK energy company British Gas Group (BG) plans to invest up to $5bn in Brazil by 2012 for the development of newly discovered oil reserves.

The perception of widespread business corruption in Latin America continues to be a significant and costly problem for businesses in the region.

METALS

Nippon and Mitsui copper mine

Japanese companies Nippon Mining and Mitsui are to jointly build their first Chilean copper mine, near Copiapó in Region III. They are to build the Minera Caserones copper mine to supply three of the firms’ refineries in Asia with fine copper and molybdenum.

The Obama Administration has exhibited urgency in addressing significant economic and national security challenges. An issue impacting upon both is global warming, which, in one of the coldest years in memory, is now called climate change.

With its highest-ever degree of productivity, a broadened export base and strong monetary reserves, Brazil’s economy has life in it despite the global slowdown, the country’s trade minister tells Courtney Fingar.

There is no oceanfront property in Arizona but that has not stopped a shipping company from locating its regional headquarters in the south-western US state. Karen E Thuermer reports on NOL’s move inland.

Paraguay’s new government is wasting no time in encouraging foreign investment to a country that has long been blighted by corruption. The introduction of a personal income tax is a positive start but President Lugo still has some way to go to convince doubters. Jason Mitchell reports.

A diversified industrial base, transparent market and solid fiscal governance mean that Rio de Janeiro should remain on the radar of investors despite the slowdown.

The state of Bahia in Brazil offers investors a great location with excellent logistics, low-cost primary resources and a qualified workforce.

Mining giant scales back on its operations in Western Australia and sheds workers as commodity prices dip.

Malaysia has banned its companies from taking on foreign workers. Home minister Syed Hamid Albar announced the new measures in January, which the government believes will protect its citizens from unemployment during the economic downturn.

UK home retail group Argos has announced it will cease operating in India after only two years, highlighting the dangers for foreign retailers of expanding overseas in the current downturn.

ALTERNATIVE/RENEWABLE ENERGY

Russian biomass facility

Russian energy firm JSC PromSviaz Automatika plans to build a biomass power plant in Indonesia’s South Sulawesi, for which it will co-operate with South Sulawesi Provincial Enterprise.

According to the Chinese zodiac, 2009 is the Year of the Ox, the sign of prosperity through fortitude and hard work. However, many Asians expect 2009 to be the Year of the Skinny Ox.

The director of the Standing Committee of Zhuhai People’s Congress tells fDi how the Chinese city’s location, transport network, business-friendly laws and flexibility will help it escape the worst effects of the economic downturn.

After years of underdevelopment, Laos is reforming its laws and encouraging greater financial activity in anticipation of joining the WTO, writes Nick Freeman.

The increasing prominence of CSR in global operations is beginning to have an impact on forced labour yet not all of the supply chain is being reached. Nick Freeman reports.

In response to slowing demand for steel, Tata has announced a wave of redundancies at its Corus plants.

In tough times like these, you get to know who your real friends are pretty quickly. As a foreign direct investor in a part (or various parts) of Europe, hopefully your local investment promotion agency (IPA) is standing resolutely by your side.

The world’s largest mobile phone manufacturer Ericsson has announced a further 5000 job cuts as part of a $1.2bn cost-cutting plan, which will also see the firm consolidating its global R&D centres.

In its biggest European expansion since 2003, US fast-food giant McDonald’s announced it will create 12,000 new jobs and build 240 new restaurants across the continent over the next five years.

COAL, OIL AND NATURAL GAS

Natural gas joint venture

Germany’s BASF and Russia’s Gazprom have launched natural gas production at the joint-venture ZAO Achimgaz in Siberia, Russia. The joint venture produces natural gas and condensate from the Achimov Formation in the Urengoy deposit.

Keeping pace with technological advancement has proven a rewarding strategy for Eldor. After making its name in the pre-digital television age, the company has moved into automotive parts, and is now fortifying its R&D offering, writes Lara Williams.

Turkey’s state minister for foreign trade tells Lara Williams how a promising aerospace sector and an export growth rate that has busted records over the past five years will help the country survive a drop in trade flows.

US-based entrepreneur Alec Miloslavsky’s focus on Latvia for his company’s first overseas expansion came about through circumstance but the availablity of technical skills and the cache of an EU address also helped. By Lara Williams.

Within the complex cultural make-up of Belgium lies Wallonia, a French-speaking region dedicated to high-end, value-added industries that boasts outstanding geographic connections. Tom Blass explores

The events of the past year have left foreign investors in Russia feeling nervous. However, demand for Western goods remains strong for the companies willing to tough it out, writes Tom Blass.

Berlin is being put on the map again – this time in three dimensions. Berlin Partner has developed a virtual, clickable model that sets new standards in visual data mining and marketing.

fDi Intelligence reveals that the number of international investment projects in Kenya grew by 1150% last year.

Saudi Arabia has announced regulatory changes which it hopes will attract FDI despite the global economic slowdown.

Iraq experienced a surge of investment in 2008, indicating that foreign companies regard the country as a viable investment destination.

COAL, OIL AND NATURAL GAS

Sumitomo Saudi plant

Japanese trading house Sumitomo Corporation is to participate in a project in Saudi Arabia to build and operate a combined oil-fired power plant and water desalination complex to the north-east of Riyadh along the Persian Gulf.

Foreign investors have contributed greatly to the recent property boom in the United Arab Emirates, particularly in Dubai. Their enthusiastic approach to buying property there has helped developers to continue projects under the misconception that the boom would never end. Most of the property, villas and apartments were bought off-plan.

Global demand for sophisticated security has led defence contractor Lockheed Martin to branch out beyond its traditional military domain and away from its US stronghold, the company’s president for the Middle East and Africa tells Lara Williams.

The former South African president and Nobel Prize winner shares his views with fDi on the economic and political developments in his country since apartheid.

With its own ‘Smartcity’ under development in Durban, and a ready market for new technologies, South Africa is attracting the attention of global ICT businesses, reports Karen E Thuermer.

Many countries in the Middle East are ramping up their role as logistics hubs as they look to distance themselves from their oil-producer status and attempt to stand out as international trading points. Tom Blass reports.

Dr Bilal Bashir, deputy-chief commissioner and commissioner for economic development and investment affairs, Aqaba Special Economic Zone Authority (ASEZA) explains the region's appeal.

In these troubled economic times, sale and leaseback transactions can provide companies with much-needed cash flow, writes Lara Williams.

While advising the chief financial officer of a major European retailer recently, Cushman & Wakefield’s head of occupier strategy for EMEA, Matthew Stone, discovered that 60% of the retailer’s capital was tied up in real estate that was generating only a 6% return, whereas the firm’s core business was delivering returns of up to 26%. “A company’s shareholder capital should be deployed in the most profitable part of that business, which is logical but rarely practiced,” says Mr Stone....

Prestigious Western educational establishments are entering emerging economies to create global brands. By Lara Williams.

Requirements for international oil companies to utilise local workers is a contentious issue. However, by embracing these obligations some of the sector’s leading names have found that such arrangements can be mutually beneficial. Tom Blass reports.

As global financial centres vie for the competitive edge in the downturn, fDi’s rankings reveal that London leads in two key areas.

IP protection systems vary wildly between countries, leaving investors unsure of how safe their trade secrets are, write Roland Mallinson and Professor Michael Mainelli.

Over the past six years, greenfield investment in the financial and business services sector has grown by 20%, with project numbers continuing to rise in 2008.

Sumitomo Saudi plant

Japanese trading house Sumitomo Corporation is to participate in a project in Saudi Arabia to build and operate a combined oil-fired power plant and water desalination complex to the north-east of Riyadh along the Persian Gulf.

Baghdad mixed-use project

Al Maabar International Investments – part of the UAE’s Al Qudra Holding – will develop a $10bn mixed-use project in Baghdad. The development, located at the Al Rasheed Military Compound, will cover 1250 hectares, comprising residential units, a commercial district, a technology centre, a hotel and hospitality district, healthcare and educational districts and public facilities such as mosques and petrol stations. A proportion of the site will also be devoted to entertainment.

Russian biomass facility

Russian energy firm JSC PromSviaz Automatika plans to build a biomass power plant in Indonesia’s South Sulawesi, for which it will co-operate with South Sulawesi Provincial Enterprise.

Total gas exploration

French oil company Total is performing exploration activities in Block B offshore of Brunei. It has made significant gas and condensate discoveries. The first phase of the project has finished and the second phase is expected to begin in 2009. Total is the block operator with a 37.5% stake. Partner Shell Deepwater Borneo has a 35% interest and the government of Brunei has a 27.5% interest.

Nippon and Mitsui copper mine

Japanese companies Nippon Mining and Mitsui are to jointly build their first Chilean copper mine, near Copiapó in Region III. They are to build the Minera Caserones copper mine to supply three of the firms’ refineries in Asia with fine copper and molybdenum.