Asian Cities of the Future 2009/10
Singapore has been ranked by fDi Magazine as the Asian City of the Future 2009/10, with Tokyo and Shanghai following in second and third places, respectively. Jacqueline Hegarty reports on the leading performers.
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Winners’ circle
Reactions from the leaders of Asia’s most promising locations for future investment on what the recognition means for them and what makes their cities special.
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ADV An education hub for South-East Asia
The opening of Marlborough College Malaysia in 2012 is set to help the region’s development as a knowledge-based economy.
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ADV Blueprint for prosperity
Strategic location and long-term planning are key to the success of Iskandar Malaysia.
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ADV Forging closer ties
Iskandar Malaysia enables Malaysia and Singapore to leverage each others’ strengths.
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ADV Port drives efficiency
Business is booming at Malaysia’s Port of Tanjung Pelepas, recognised globally for its cost effectiveness.
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UK RDAs face uncertain future
Conservative MP announces party’s plans to restructure or disband England’s regional inward investment agencies.
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Europe
We are at a point where the burgeoning European ‘cleantech’ industry is starting to meet harsh reality. An unpleasant mix of greedy bankers, conniving politicians, monopolistic power companies and painfully protracted planning permissions are all obstructing the progress of green business.
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Problems beset Romanian FDI
As fDi Magazine reported in its October/November issue, there have been several key investments in Romania’s manufacturing sector this year, but a lack of road infrastructure and industrial parks has meant many other possible investors have stayed away from the eastern European nation.
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McDonald’s closes Iceland restaurants
McDonald’s announced in October it would be closing down its three restaurants in Iceland, a country hard hit by the economic crisis.
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Business Services
Kyprianou moves into Cyprus Michael Kyprianou & Co, a Cyprus-based law firm, has opened its first overseas office in Athens, Greece. The office is located in the city centre and will handle the representation of local clients who need advice regarding Cypriot law as well as clients seeking advice regarding Greek law. The company already has four offices in Cyprus.
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Communications
Vodafone venture in Milan Vodafone, a provider of mobile communication services, will invest €300m in the development of a new sustainable headquarters in Milan, Italy.
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Financial Services
Mikro Kapital enters Belarus Luxembourg-based Mikro Kapital, an asset management company, has established an office in Gomel, Belarus.
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Real Estate
Warsaw Equator project Karimpol Group, a real estate developer in central and eastern Europe, is set to start construction on the second phase of its Equator office project in Warsaw, Poland.
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Textiles
Billabong in Banbury Billabong International, the Australian retailer of surf, skate and snow apparel and accessories, has opened a store in Banbury, UK. The store is located in the Castle Quay shopping centre and it will offer a range of sports and leisure items.
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The plan comes together
Poland’s former minister of economy has seen the plans he instigated in 1989 to move the country from a communist to a capitalist economy bear fruit during the recent global recession. He talks to Ginanne Brownell.
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Europe’s lone star
Poland is the only country in Europe likely to register economic growth this year. It is now hoping to follow in the footsteps of the EU’s previous star pupil, Ireland, writes Ginanne Brownell.
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ADV Complete value proposition
Cyprus has always played a major role as a trading and business centre due to its strategic location at the crossroads of three continents. The implementation of wide-ranging structural reforms has led to the creation of new business opportunities for dynamic investors.
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Guinea signs $7bn China deal
China to get preferential treatment for mining projects in Guinea in exchange for $7bn-worth of infrastructure.
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Ghana joins Swiss investment drive
The Ghana Investment Promotion Centre (GIPC) has partnered with Switzerland’s Investment Promotion in Sub-Saharan Africa (IPSSA) initiative to try to drive more foreign investment to the west African nation.
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Syria open for US investment
International Investment Group (IIG), a US-based company, has announced plans for a series of industrial projects worth $35m in eastern Syria.
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Communications
Nokia in Nairobi Nokia has launched a care centre in Nairobi, located in the Hilton Hotel in the city’s central business district. This is the seventh such facility in Kenya and will provide quality after-sales service to its customers, giving them access to maintenance services, software upgrades and technical support.
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Oil and Natural Gas
Joint venture in Bahrain Occidental Petroleum Corporation and the National Oil and Gas Authority of Bahrain have formed a new joint-operating company, the Tatweer Petroleum-Bahrain Field Development Company, which will serve as the operator for oil production from the Bahrain field.
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Financial Services
NMB Bank opens in Tanzania Zimbabwe-based NMB Bank has opened its first branch in Zanzibar, Tanzania. The new operation is located in the Darajani area of Unguja Island, one of the two major islands of Zanzibar. NMB Bank entered the country in 1997, with its first office in Pemba and now operates a total of 133 branches across Tanzania.
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Software & IT services
Internet upgrade for Zambia German communication systems company Fraunhofer Fokus has set up an internet communication network in a remote village in Zambia. In underdeveloped countries such as Zambia there is little or no access to the internet, but the company aims to show how people living in poorer regions can get connected up as well.
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Transportation
Damco office for Maputo Damco, a provider of freight forwarding and supply chain management services, is opening an office in Maputo, Mozambique, in December 2009 to improve presence and service levels in south-east Africa.
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Middle East & Africa
The mining industry in the Middle East and north Africa region is transforming itself to be more appealing to investors. Companies from the world’s leading mining countries – Australia, Canada and South Africa – are taking the region more seriously and are looking at the best opportunities for investing there.
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The power of knowledge
For Qatar to compete with London and New York as a financial centre, it needs to be supported by a local talent pool. Qatar Financial Centre chief executive Stuart Pearce tells Brian Caplen of two initiatives that will help the country with this.
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From mirage to reality
Saudi Arabia may be cash-rich, but access difficulties often mean this wealth remains out of reach for non-Arabs. Spencer Anderson looks at the reforms which could make the country an investment oasis.
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Just a load of hot air?
Renewable energy, like most other sectors, has taken a beating during the recession. Ginanne Brownell takes stock of the market’s investment prospects.
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A global guide to green taxes
Environment-related tax incentives are becoming more and more common around the world. Anuschka Bakker of the IBFD examines their impact.
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ADV Game Changing
Dennis Yablonsky, CEO of the Allegheny Conference on Community Development, explains how Pittsburgh successfully reinvented itself after economic upheaval.
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Learning by example
India could take a leaf from China’s book in terms of attracting FDI inflows by making structural changes to its economic set-up and developing special economic zones, writes Dr Swapna Sinha.
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Auto investment avoids the crash
Investment in the automotive sector was only slightly down in the first nine months of 2009, a boost for an industry hit by a relentless stream of damaging headlines.
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Iraq: The new FDI frontier
Courtney Fingar offers a guide for exploring a fascinating and fast-evolving investment destination.
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Back in business
Iraq has come a long way fast in the past few years. Violence and instability – for so long synonymous with the country – are making way for optimism and prosperity, a fact not lost on opportunity-hungry foreign investors. Courtney Fingar reports.
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Serious intentions
The drive to attract investors to Iraq can be seen at all levels of government and business in the country. With various sectors crying out for foreign money or expertise, getting in early will reap dividends, writes Courtney Fingar.
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The lay of the land
The chairman of Iraq’s National Investment Commission explains how property law reform is allowing foreign investors to get a foothold in the country. He speaks to Courtney Fingar.
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Everything to play for
A muscular banking sector will make or break whether Iraq is to rebuild and prosper. And while there are increasing levels of capital inflow into the region, local banking infrastructure remains limited, leaving the sector wide open for foreign investment. Courtney Fingar reports.
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Covering all the bases
Iraq’s FDI market is stirring and the risk premiums are coming down. But, says Courtney Fingar, the onus is now on insurance companies to keep pace.
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Changing of the guard
As the withdrawal of Western troops from Iraq gets under way, security operations are changing tack. Courtney Fingar reports on the implications for foreign investors in the region.
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Who is investing in Iraq?
Data from fDi Markets provides a clear picture of investment trends in Iraq since the pivotal year of 2003.
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Comfort zone
As the flow of international business visitors into Iraq increases, the case for developing world-class hospitality facilities is becoming ever stronger, reports Courtney Fingar.
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Business as ‘usual’
Iraq is open for business and already has a number of investors singing its praises. However, those considering setting up in the country would be well advised to ditch Western conventions and embrace the Iraqi way of doing things. Courtney Fingar reports.
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Legal shield
A good grounding of the legal requirements and potential risks attached to establishing a business in Iraq can have a huge impact on a company’s survival there, writes Ginanne Brownell.
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Mauritius: Free and clear
Reform measures make Mauritius an open and transparent market for investment.
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Treasure island
There is more to Mauritius than beaches. The island is fast becoming a hub for various business sectors. Ginanne Brownell reports.
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Quick on the draw
Mauritius’ deputy prime minister and Finance minister tells Ginanne Brownell how the nation’s economic reforms in 2005 have already created opportunities in a variety of sectors.
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A picture of health
While reinventing its traditional core industries of textile and sure cane production, Mauritius is positioning itself as a hub for the lucrative medical tourism market. Ginanne Brownell reports.
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Editor's note: The ‘unpredictable’ predictables
The world may not have ended in 2009, but within some FDI sectors it must have felt that way. However, the effects of the downturn were not as unpredictable as some would make out, and, according to Courtney Fingar, countries that suffered should blame bad planning, not bad luck.
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Key FDI sectors show 2009 drop
FDI trends show a likely contraction of greenfield FDI market and drop in job creation and capex numbers.
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Transport ‘key’ to location: report
Quality of transport infrastructure and the ability to deliver integrated transport systems which will distinguish the regional economic successes of the future is a primary issue for four out of five business location decision-makers, according to a report by the UK’s Invest Thames Gateway, an inward investment agency.
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Steady growth for creatives
The creative industries sector, which saw the number of crossborder greenfield investment projects increase by half last year, looks to continue as a steady project generator with only a slight slowing down during a difficult year economically.
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Has the bilateral investment treaty had its day in the sun?
The first bilateral investment treaty (BIT) turned 50 recently. You’re forgiven if you forgot to send a birthday card. The truth is that foreign investors tend not to pay much heed to BITs – at least not when the sun is shining.
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PRIVATISATION NEWS
Investment in emerging market infrastructure projects is on the way to recovery.
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FDI experts warn over banks’ hesitancy
At the World Association of Investment Promotion Agencies conference in Milan in mid-October, speakers including economists and politicians suggested that non-traditional mechanisms of finance and new financial avenues have the potential to provide much-needed liquidity to financial systems, but disagreed over whether the global economy is in recovery.
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Governor Qasim Al Fahadawi thanks fDi for the province’s recognition and highlights its economic achievements
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Anbar’s investment potential applauded
fDi magazine’s awards recognising standout regions for investment identified Anbar in Iraq as the world leader this year.
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Bearing fruit
Barcelona-based fashion retailer Mango has not let the global recession thwart its international expansion plans, and is being rewarded with bumper profits. Ginanne Brownell reports.
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Solon shines
When German solar module maker Solon decided to expand beyond its European stronghold, Arizona’s abundance of sunshine, and the potential for growth in the sector in the US, made the location decision an easy one. Karen E Thuermer reports.
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Taking direction
China’s thriving manufacturing sector is a draw for foreign investors. However, choosing a location can be fraught with pitfalls without some guidance, writes Klaus Koehler.
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Key US states suffer R&D fall
Massachusetts and California experience reduction in R&D projects but Texas and Florida show impressive growth.
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BNP Paribas exits Panama
BNP Paribas joined the ranks of other major global banks when it announced in September that it would be closing down operations in Panama.
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Alabama set for health fillip
If the Barack Obama administration’s planned healthcare reforms go ahead and the ban on selling insurance policies across state lines is lifted, Alabama – which has the lowest insurance regulatory costs in the US – could become a hub for health insurance providers.
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Alternative/Renewable energy
Inbicon biomass refinery Danish company Inbicon has pursued the licensing, development, and construction of a biomass refinery in North Dakota.
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Business Services
Ovation office in Brazil Irish management service company Ovation Global DMC has opened an office in Rio de Janeiro, Brazil, to offer its services there.
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Consumer Products
Ferreteria Spanish venture Ferreteria EPA, a chain of do-it-yourself stores and a subsidiary of Venezuela-based Becoblohm Valencia, is to open a 30,000-square metre store in the Real Cariari shopping centre in the town of San Antonio de Belén, located in the Heredia province of Costa Rica. The company has invested $14m in the construction of the store, which will be its third in the country.
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Financial Services
Cooper Gay opens in Atlanta Cooper Gay, the UK-based insurance and reinsurance broking group, has opened a new office of Cooper Gay Risk Services in Atlanta, Georgia. This is the US subsidiary’s eighth branch.
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Electronic Components
Argos moves into Guatemala Mexico-based electronic components and accessories supplier Argos Eléctrica has opened a distribution centre in Guatemala.
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Pharmaceutical
Bayer grows in Colombia Bayer Healthcare, a subsidiary of German-based Bayer, is to invest $16.3m to increase production capacity at its aspirin manufacturing plant in Cali, Colombia.
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America
In the early 1990s, a senior tobacco company executive shared this observation with me on the increasingly negative attitudes about smoking: His fourth-grade daughter asked him not to name the company he worked for at a parents’ back-to-school night.The growth of the cultural stigma against smoking is an interesting parallel to the anti-carbon fuel movement of today.
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Argonne director Eric Isaacs |
The appliance of science
The US government’s stimulus package is benefiting research centres such as Argonne, Illinois, where the flow of funds is giving the centre’s renewable energy focus a huge boost. By Karen E Thuermer.
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Mexico’s ascent
The past three years have seen strong growth in the Mexican aeronautics sector, with Chihuahua emerging as a key centre for production, finds fDi Markets research.
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ADV Clean tech melting pot
Trinidad & Tobago is leveraging its experience in energy technology at Tamana InTech Park to help tackle climate change.
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Gentle turnaround
A history of civil war and the global downturn have hindered central American FDI, but as its governments adopt a pro-investment approach and world economies recover, prospects look brighter, writes Adam Coulter.
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ADV A Global Services Cluster in Chile
Chile’s efforts to become a global services cluster have centred around five key industries. Results have been encouraging, and the council representing these industries expects their collective value to soon rival that of the country’s wine exports.
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ADV Top of the latin spots
Western companies are flocking to Chile to set up their global services shops – taking advantage of its economic stability, modern telecoms and labour pool.
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Production line slows in China
Investors are quitting manufacturing projects in Asia as outsourcing to other regions begins to offer better value .
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Russian investors flock to Singapore
Singapore has been attracting a rush of Russian investments as wealthy business people seek both exposure to fast-recovering Asian markets and a place with political stability for their personal wealth.
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$12bn oil refinery for Vietnam
Taiwan-based Formosa Heavy Industries Group has received principal approval from the Vietnamese government to build a $12bn oil refinery in the Vung Ang economic zone.
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Communications
Arkadin opens in South Korea Arkadin, a global provider of audio and web conferencing services specialising in remote collaboration services, has opened an office in Seoul, South Korea.
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Consumer Products
Rohto breaks into Indonesia Rohto Pharmaceutical has constructed a plant for shampoo, lip cream and other skin-care products in Indonesia to meet growing local demand. The plant is located outside the West Java capital of Bandung.
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Financial Services
OSK Indochina in Cambodia OSK Indochina Bank, a subsidiary of OSK Holdings, has opened a branch in Pet Lok Song, Phnom Penh, Cambodia.
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Non-Automotive Transport
OEM Suzuki pairs with Grand River Suzuki Motor is starting construction on a plant in China’s Jiangsu Province to produce environmentally friendly motorbikes with 125-cc engines in a joint venture with Grand River Group.
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Software & IT services
Advent expands into Beijing Advent Software, a leading provider of software and services, has opened an office in Beijing, China.
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Asia
The Asia-Pacific Economic Co-operation (APEC) Summit in Singapore ended this week with an agreement on ‘a new growth paradigm’ which included a rejection of ‘all forms of protectionism’ and a commitment to reduce the cost of doing business in the region by 25% by 2015.
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