SURVEY N°1 / July 2008 Invest in the Mediterranean · Invest in the Mediterranean ... two areas, the Maghreb and Turkey, but its positions are fragile in ... recent study undertaken

SURVEY N°1 / July 2008

Foreign direct investment into MEDA in 2007

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Foreign direct investment into MEDA in

2007: the switch

S t u d y N ° 1

J u l y 2 0 0 8

A N I M A I n v e s t m e n t N e t w o r k

Pierre Henry/Samir Abdelkrim/

Bénédict de Saint-Laurent

Foreign investment into the MEDA region in 2007

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References This report was prepared by the ANIMA team within the framework of the Invest in Med contract. ANIMA Investment Network is a multi‐country platform supporting the economic development of the Mediterranean. The network gathers around 40 governmental agencies and international networks.

The objective of ANIMA is to contribute to a better investment and business climate and to the growth of capital flows into the Mediterranean region. www.anima.coop

ISBN 2‐915719‐34‐9 EAN 9782915719345

© ANIMA‐Invest in Med 2008. Reproduction prohibited without express authorisation. All rights reserved

Authors Pierre Henry, Samir Abdelkrim, Bénédict de Saint‐Laurent (ANIMA) for the data‐gathering and the drafting.

The economic intelligence team of AFII assisted ANIMA and our cordial thanks are especially due to Charlotte Danet, Dioline Dorvil, Fouad Hachani, Yann Letessier, Nadeschda Musshafen, Emmanuelle Rausch, Julie Veaute.

The various MEDA Investment Promotion Agencies (IPA) and French economic missions abroad for the supply of certain information.

ANIMA and its partners cannot be held responsible for the data provided. Any error or inaccuracy should be communicated to [email protected]. ANIMA is interested in getting your feedback, comments, further information and updates.


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Acronyms ANIMA: Euro‐Mediterranean Network of Investment Promotion

Agencies

AFII: Invest in France Agency

CEECs: Central and Eastern European Countries

EU: European Union (EU‐25, but frequent differentiation of EU‐15 –“old” members‐ and EU‐12 – “new” members‐)

FDI: Foreign Direct Investment

GDP: Gross Domestic Product

GNP: Gross National Product

ICT: Information and Communication Technologies

IPA: Investment Promotion Agency

MEDA‐12: group of 12 partner countries of the EU: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Palestinian Authority, Syria, Tunisia, Turkey (Malta and Cyprus are taken into account in the study, but joined the Union in 2004)

MEDA‐10: the same without Malta and Cyprus

MENA: Middle East ‐ North Africa = MEDA‐10 + Mauritania, Libya, Sudan, Gulf States + Yemen, Iran, Iraq, Afghanistan, Pakistan (sometimes variable geometry)

MIPO: Mediterranean Investment Project Observatory

R&D: Research and Development

SCSC: Software and Computing Services Company

UNCTAD: United Nations Conference on Trade and Development

WIR: World Investment Report (report by UNCTAD on foreign investment)

WTO: World Trade Organisation


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Contents FDI in MEDA, illustrating a shift in the global economic balance.8 1. Synopsis: more FDI projects than ever in 2007 .............................. 10

The new attractiveness of the Mediterranean................................................ 10 Consolidation in value in 2007, after 5 years of strong increase................. 11 Europe and the Gulf, 2 pillars of foreign investment in the Mediterranean ..................................................................................................... 14

Europe is back .............................................................................................................14 What explains this new Mediterranean tropism? .................................................15 Reforms start paying off ............................................................................................17

Modes of establishment: mainly acquisitions................................................ 18 Leading sectors: real estate and energy ahead .............................................. 19

Too few investments with strong spillovers ..........................................................22 The prize list of the largest FDI projects ......................................................... 22 Conclusion: how can MEDA achieve a lasting attractiveness? .................. 24

2. Euro‐Med integration or Euro‐Med‐Gulf triangle?....................... 25 Context: Dubai plays the troublemaker in the Barcelona process.............. 25 The Euromed integration, a necessary condition, but one of many, of the takeoff of the MEDA region ....................................................................... 26 Presence of the Gulf in the Mediterranean: in search of economic rents or healthy contribution in new blood?............................................................ 28

Gulf and Europe dominate foreign investment flows in the Mediterranean ...28 Competing or complementary investment strategies?.........................................29

Conclusion ........................................................................................................... 33 3. Sectoral analysis of FDI into MEDA................................................ 36

Boom of the equipment and processing industries ...................................... 36 2007 sectoral prize list ................................................................................................37

Reinforced concentration of FDI flows on some sectors .............................. 38 Sectoral distribution of 2003‐07 FDI projects .........................................................39

Relative constancy of the outperforming sectors .......................................... 40 Difficult digestion of the heaviest real estate investments ..................................40 Banking on the Mediterranean.................................................................................41 Tourism and telecoms await the next wave of FDI...............................................41


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A very variable entry ticket depending on the sector .................................. 42 FDI, driving force for employment.................................................................. 44 Review by sector ................................................................................................. 46

Public works, real estate, transport, delegated services.......................................46 Tourism, catering........................................................................................................49 Distribution, retail ......................................................................................................50 Energy...........................................................................................................................52 Industries of materials ...............................................................................................54 Electric, electronic and medical equipment, electronic components, electronics ware...........................................................................................................57 Pharmaceutical industries and biotechnologies ....................................................58 Automotive, aeronautics, mechanics and machinery...........................................58 Services: Bank, insurance and other financial services.........................................62 Telecom & Internet operators ...................................................................................67 Data processing & software, Engineering & services to businesses...................68 Personal and domestic services, other services .....................................................71

4. Geography of foreign direct investments in MEDA..................... 72 The confirmed attractiveness of Machrek ...................................................... 72 Egypt and Turkey continue to fill the tank with FDI ................................... 73 Origin of the flows of FDI towards MEDA.................................................... 75 European investors back in the race................................................................ 75 Gulf investors set up camp ............................................................................... 76 Asian companies settle quietly......................................................................... 76 The intra‐MEDA integration process goes on ............................................... 78 Profile of the receiving countries for 2007 ...................................................... 79

Egypt: the Sphinx takes off! ......................................................................................79 Turkey, a new Euro‐Mediterranean tiger ...............................................................80 Algeria eventually courted by foreign investors ...................................................81 Israel: good economic records despite the decline in FDI....................................83 Jordan relies on Arab investors ................................................................................84 Syria: calling upon all people of goodwill ..............................................................85 Lebanon: some projects gained in spite of the crisis.............................................87 Morocco: a determination which produces results ...............................................88 Tunisia: immaterial investments and great property projects ............................90 The Libyan phoenix rises from its ashes.................................................................92 Malta, Cyprus and the Palestinian Territories .......................................................93


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5. Annexes ................................................................................................. 94 Annex 1. List of projects detected in 2007 (MIPO)........................................ 94 Annex 2. Origin‐destination cross table 2003‐07 ........................................... 153 Annex 3. Methodology ...................................................................................... 154

Approach......................................................................................................................154 Selection criteria..........................................................................................................155 Recent methodological changes ...............................................................................156

Index of figures and graphs .............................................................................. 158

FDI in MEDA, illustrating a shift in the global economic balance

Data on foreign direct investment (FDI) in the MEDA region (Mediterranean countries partners of the EU) 1 confirm the entry of the area in the economic globalisation. In a global context of shifting dynamism between on the one hand, developed countries, often in relative decline, following the example of the United States or Europe, and on the other hand emerging countries, whose growth seems insatiable, the Mediterranean follows the same patterns:

Over the past few years, the interest of the northern shores (European) of the Mediterranean in its southern neighbour has not grown significantly. Even though European investments in MEDA in 2007 remain high (approximately 24 billion euros), a third of this FDI flow comes from a single project (the purchase by Lafarge of the cement factories of Egypt’s Orascom). Europe remains a significant partner in two areas, the Maghreb and Turkey, but its positions are fragile in Machreck. Europe chooses MEDA to locate projects that it cannot carry out any more in an economically viable way on its own territory (automotive, aeronautics, delocalization of services). European champions also perceive the potential of the MEDA market: it is the case of banks, tourism companies, or construction giants (Lafarge, Italcementi, Spanish public works companies, etc). Lastly, another recent study undertaken by ANIMA (Med Funds) shows that the European share of the capital investment (private equity) injected in the region is very weak (3%, against 22% for the United States and 22% for the Gulf);

On the contrary, the South never seemed so eager to benefit from the many Mediterranean opportunities. The MEDA operators themselves are starting to invest in the other countries of their region (55 projects in

1 Algeria, Tunisia, Morocco, Egypt, Jordan, Lebanon, Palestine, Syria, Turkey, Israel + Libya as an observer. Cyprus and Malta are since 2004 members of the EU.


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2007, the first signs of regional industrial integration). All dynamic emerging economies (and not only China and India) are represented in a region whose resources are better valued now. The champions of the South have a presentiment of the growing potential of MEDA as a production platform for the future Euromed market. The Gulf, with a third of the amounts to be invested, confirms, especially in the Machreck, its role as an economic “big brother” who could become an interesting partner of the historic godfather who is Europe.

The project of the Union for the Mediterranean comes at the right moment to bring new energy to a Euro‐Mediterranean partnership which probably lacked ambition and political support. Companies, the business community, the civil society can perhaps make this integration process a success given the difficulty of conceiving it only from a strictly political point of view. The examination of the economic relations that this report allows confirms all the hopes, all the stakes which one must legitimately place in a region that is a key for the future of Europe and the world:

With a third of world merchandise flows transiting via Suez and Gibraltar, the Mediterranean, located at the centre of the new global logistics, has become an industrial battle field where champions of the north and the south clash;

The region is asserting its vocation to become a dynamic production platform of goods and service at the doors of Europe –being able furthermore to profit from a privileged access to the funding coming from the Gulf;

Over the past three years it has received a yearly amount of foreign investment close to that of China and higher than that of India.

1. Synopsis: more FDI projects than ever in 2007

The new attractiveness of the Mediterranean According to UNCTAD figures, in 2006 MEDA countries had passed a symbolic threshold by attracting more than 4.5% of the world flow of foreign direct investment (Figure 1), that is to say, more than their share of the world population (4%).

Figure 1. UNCTAD data on FDI inflow by regional subset of destination and MEDA share of total world FDI (in million USD, UNCTAD‐WIR)

16 595

34 421

8 005

05 000

10 00015 00020 00025 00030 00035 00040 00045 00050 000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20060%

1%

2%

3%

4%

5%

Machrek Turkey + Israel Maghreb MEDA share of world FDI

The Maghreb, Machrek and Turkey‐Israel have all benefited from this new injection of capital, even if in fact the main economic and/or demographic powers of the region (Turkey‐Israel on the one hand, Egypt for Machrek) have enjoyed the most significant increases since 2004.


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Consolidation in value in 2007, after 5 years of strong increase Whatever the source (UNCTAD‐WIR or ANIMA‐MIPO observatory), FDI poured into MEDA slightly decreased in value in 2007, whereas the projects have never been so numerous (more than 800):

According to the UNCTAD, which measures macroeconomic flows in national accounts, FDI registered in the MEDA region was multiplied by 6 in 6 years. It went from ten billion USD in 2000 to about sixty in 2006. In 2007 however, the first estimates show a decline of 8 billion dollars (see Figure 2);

Figure 2. FDI inflows 2000‐07 for each MEDA country (million US, UNCTAD‐WIR for 2000‐2006, estimate for 2007) 2

Reg./country 2000 2001 2002 2003 2004 2005 2006 2007 Algeria 438 1 196 1 065 634 882 1 081 1 795 6 000 Egypt 1 235 510 647 237 2 157 5 376 10 043 10 000 Israel 5 128 3 605 1 668 3 896 2 040 4 792 14 301 4 000 Jordan 815 138 74 436 651 1 532 3 121 3 000 Lebanon 964 1 451 1 336 2 977 1 993 2 751 2 794 2 100 Morocco 471 2 875 534 2 429 1 070 2 946 2 898 5 200 Palestine 62 19 9 18 49 47 38 NA Syria 270 110 115 180 275 500 600 700 Tunisia 779 486 821 584 639 782 3 312 1 000 Turkey 982 3 352 1 137 1 752 2 883 9 803 20 120 19 400 MEDA 10 11 144 13 742 7 407 13 143 12 639 29 610 59 021 51 400 Libya 141 ‐113 145 143 357 1 038 1 734 4 400

According to ANIMA (MIPO Observatory, launched in 2003 as a complement to a European observatory by Invest in France Agency), which considers micro‐economic data (collection of individual projects

2 UNCTAD figures for 2007 are estimates published at the beginning of 2008 for Egypt, Lebanon, Morocco, Tunisia and Turkey, while figures for Algeria, Israel, Jordan, Palestine and Syria are estimates produced by ANIMA on the basis of official declarations, data derived from MIPO or other sources.


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advertised by the investors), announced FDI flows 3 regress in the same proportion (Figure 3).

Figure 3. Total FDI inflows and number of projects for MEDA 10 (without Libya, UNCTAD in million dollars, million euros for MIPO)

29 610

59 021

51 400

12 639

13 143

7 407

60 627

68 174

12 851

9 863

39 187

796779

666

333256

167

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

2002 2003 2004 2005 2006 2007

0

100

200

300

400

500

600

700

800

FDI flow, UNCTAD‐ US$m FDI flow, MIPO, €m Nb. of projects

This regression in value recorded by MIPO is due to several factors: change in the euro‐dollar parity (a majority of the non‐European projects being announced in US dollars, and registered in euros in the MIPO database), deceleration in the rhythm of announcements of major real estate and tourism projects; temporary stringency of operations of privatisation; finally, reduction in the amounts devoted to the American M&A operations in Israel.

3 MIPO takes into account investments announced in year x, when the investor (or sometimes even the National Investment Commission) publicises or confirms a project for implementation that will lead to payments or transfers in the same or following years (year x + 1 etc.). The data provided by ANIMA‐MIPO is therefore forecast data.


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Except in the case of an unforeseen shock, this consolidation should not mark a reversal of trend. The major causes of the growing passion for the Mediterranean observed since 2004 are indeed not ready to disappear: abundance of petrodollars, proximity with Europe, economic takeoff of Turkey, awareness of the potential of the MEDA market and new interest for the Euromed region in general.

The Eastern part of the region receives the bigger share of these relatively strong FDI flows. Turkey and Egypt are indeed the countries which attracted the most significant flows of FDI in 2007. Egypt collects 80% of the FDI directed towards the Machrek, against a little less than 60% on average the previous years. As for the Maghreb, it is Algeria which is distinguished in absolute terms.

Taking account of ʺsize of the marketʺ factors (GDP and population), the countries where the impact of foreign investment is strongest are Jordan (455 euros per capita), Egypt (FDI forecast by MIPO accounts for 20% of real GDP), Libya, or Tunisia (Figure 4).

Figure 4. FDI performance of MEDA country in relation to population and GDP 4

Year 2005 2006 2007 Pays Flow %pop %GDP Flow %pop %GDP Flow %pop %GDP

Algeria 4 133 127 76,3 2 476 75 42,8 5 317 160 95,3 Egypt 6 978 90 70,6 15 914 202 150,2 22 220 277 217,1 Israel 5 899 940 57,7 13 908 2 189 129,0 3 971 618 38,7 Jordan 1 129 196 124,1 3 235 548 337,6 2 754 455 300,5 Lebanon 643 168 39,9 3 322 858 198,8 279 71 17,8 Libya 418 72 11,8 359 61 9,5 4 439 735 123,1

Morocco 1 924 59 58,6 5 292 159 152,3 2 911 86 88,5 Syria 2 938 159 170,4 5 051 268 281,6 2 165 112 128,8 Tunisia 1 089 108 56,0 3 885 382 188,3 2 856 278 144,7 Turkey 14 032 201 70,9 14 283 203 67,8 17 997 253 89,5

MEDA 10 38 765 149 70,4 67 655 256 115,7 60 550 226 108,4 MEDA 13 39 605 148 66,3 68 533 252 108,0 65 067 236 107,3

4 FDI flow in million euros (ANIMA‐MIPO), ʺ%popʺ in euros per capita, and ʺ%GDPʺ = FDI flow / real GDP * 1000. FDI Data come from MIPO; demographic data are provided by the US Department of Commerce Census Bureau; GDP data are taken from the World Development Indicators by the World Bank. MEDA 10 excludes Libya; MEDA 13 includes Libya, Cyprus and Malta.


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Europe and the Gulf, 2 pillars of foreign investment in the Mediterranean

Europe is back

In a global context of macro‐economic shift between developed countries and emergent countries, the Gulf confirms its interest in the region, but Europe and France also make their return (due in particular to the Lafarge/Orascom deal worth more than 12 billion USD).

European investments strongly increased in 2007 (+10 billion euros, 40% of the total, against 24% in 2006), while North‐American investments, as important in volume (number of projects) as over the past years, are this year more modest projects (144 projects for 6.3 billion euros, against 20 billion in 2006). Intra‐MEDA operations experience a rather remarkable and encouraging surge (55 projects).

Figure 5. Evolution of announced FDI flows to MEDA by region of origin (ANIMA‐MIPO 2003‐07, in million euros and % of annual total)

0

5 000

10 000

15 000

20 000

25 000

30 000

2003 2004 2005 2006 2007

UE27 + EFTA Gulf & other MENA USA/Canada

MEDA‐10 Asia‐Oceania

35%

24%

34,4%

40%

44,4%

56,5

45,7%

21,1%

The presence of investors from Asia and other emergent economies, still discreet for the moment, will become more and more noticeable in the years to come: in 2007 companies from China, India, and Russia multiplied press releases announcing great projects in energy, infrastructures or heavy industries, mainly in Turkey, Egypt, Libya and Syria.


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The Gulf and Europe are for the moment the 2 pillars of foreign investment in the Mediterranean. These two regions weigh together 67% of the total amounts announced over the last 5 years, and 66% of the number of projects.

The European investors’ share of the stock of projects announced since 2003 remains however dominant, with 48% of the total.

Figure 6. Total number of FDI projects per region of origin (MIPO 2003‐07)

MEDA‐106%

Others3%

Gulf & other MENA17%

USA/Canada18%

UE‐27 + EFTA48%

Asia‐Oceania8%

What explains this new Mediterranean tropism?

Three joint movements feed these flows of investment:

The boom of energy and raw materials, which causes a race for cheap industrial inputs, and concerns mining and extraction industries as much as the processing industries (chemicals, fertilisers, plastics, metallurgy, cement, etc.);

The search for new driving forces of growth or gains in competitiveness for mature industries in developed countries, or the search for a critical size out of skimpy domestic markets (for Gulf companies for example, in particular in telecoms, banking, etc). European companies (or those active in Europe), large and small, are under the pressure of a strong Euro, and forced by rigid (labour laws and costly social protection) and shrinking labour markets (ageing population, political reluctance


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against new mass immigration). Even if relocations are less frequent than it seems, many companies will prefer locating new productive capacities out of Europe (Renault‐Nissan in Tangier, or the aeronautics industry (Figure 7). These investments aim at the satisfaction of external needs (free trade agreements, free zones, etc.) as much as the satisfaction of the local demand born of the increase in the local purchasing power;

The third movement is the recycling of the commercial surpluses (hydrocarbon incomes from the Gulf mainly) in residential, commercial or tertiary real estate, in tourism infrastructures but also in industry (metallurgy, fertilisers) or services (banks and telecoms). These investments are frequently made by State holdings. They also concern rising stars of the private sector of the Gulf, thanks to the funds easily raised on domestic stock exchange places blessed with abundant liquidity (see at the end of this chapter the list of the largest operations announced in 2007).

These three movements contribute to the same effect: a new competition between established multinationals and challengers of the emerging world, often based in the Gulf, and which have large means to serve their ambitions.

Figure 7. Case study: European aeronautics cluster facing a weak dollar The French group Safran, whose aeronautics division includes the firms Messier‐Dowty and Messier‐Bugatti (landing gears), Aircelle and Hispano‐Suiza (engines) and Labinal (electric wiring), invoices in dollars and produces mainly in euros, like all the European aeronautical industry. The fall of the American currency vis‐à‐vis the Euro thus weighs considerably on its competitiveness, and forced it to accelerate the redeployment of its production capacity in the dollar area: the objective is to decrease by 2010 down from 55 to 45% the exposure of this branch to the dollar/Euro exchange rate.

Whereas the personnel in Western Europe demands rises of wages and jobs creation, the group has invested 50 million euros every year since 2006 in creating or extending factories in Mexico, China, Morocco, India or Poland. ʺAlmost all our factories are in the course of doubling in size, [… ] all our companies have a site in the dollar area or in emerging countries and are able to transfer to it some activitiesʺ, explains the group management ʺ[ In 2008 ] this new deployment will be operational, and we will exploit these factories and saturate them. But if the drift of the dollar vis‐à‐vis the Euro continues, we will transfer more activities ʺ.


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In fact, the products manufactured offshore are ʺof the same complexity and of the same quality as those from the European sitesʺ, which makes these new transfers all the more feasible and thus probable.

As an Airbus subcontractor, Safran has no choice but to pass on its own suppliers the pressure transmitted by the airframe manufacturers. Louis Gallois, head of EADS, said publicly: ʺwe will increase the contents in dollars of our planes, in particular by paying more and more our suppliers in dollars which gives them strong incentives to do just like us ʺ. The equipment suppliers working in the Euro zone will be paid in dollar, which forces them to prefer, among their French subcontractors, ʺthose which developed out of Franceʺ.

Whereas job creations on the offshore sites amount to thousands, Safran will hire only 2000 people in France in 2008, a figure below that of the forecast retirements (around 2500‐3000).

Source: « Safran réagit à la hausse de lʹeuro en accélérant les délocalisations », Le Monde, 27/03/2008

Reforms start paying off

Following the example of Egypt, crowned 1st reforming country in the world for 2006‐2007 by the Doing Business Report (World Bank‐IFC), the MEDA countries have engaged in reforms aiming at opening their economies, at supporting private/foreign initiative through better protection of their interests, at entering the international competition by better promoting their territories. Much remains to be done, but the response of the market shows that the signal was received. Some measures taken in 2007:

Egypt is the 1st Arab and African country to have ratified (July 2007) the OECD Declaration on international investment and multinational corporations.

Syria implemented reforms recommended by the IMF, concerning the independence of the central bank, the regulation of the financial sector and the management of public finance.

The government of Algeria appears determined to encourage foreign and domestic investment, by the adoption of a bill which includes various measures of administrative simplification (setting up a business), envisages a facilitated access to the tax incentives granted by the State, redefines the role of the National Agency for the Development of Investment (ANDI) and specifies its relationships to the tax and customs authorities (respect of the customs exemptions and tax reductions


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granted). The bill stipulates that certain investment projects will be able to benefit from 20 year land concessions, renewable and convertible in legal transfers.

In Turkey, a new investment promotion agency, the Investment Support and Promotion Agency of Turkey (ISPAT) otherwise called Invest in Turkey, officially took over the foreign investment department of the Under‐Secretariat of the Treasury on October 24, 2007. The new agency counts on an international representation network in 11 countries; namely China, Germany, France, India, Israel, Italy, Japan, Russia, U.A.E, UK and the USA. The government is meanwhile preparing the liberalisation of the media and energy sector.

Libya and Spain signed a treaty of mutual protection of their investments.

The government of Morocco engaged in a policy of corporate tax reduction, whose rate is to be lowered from 35% to 30%.

Jordan and Syria signed bilateral trade agreements aiming at facilitating their exchanges.

Cyprus and Malta benefited in 2007 from the prospect of the adoption of the European single currency effective on January 1st 2008.

The government of Tunisia has decided to maintain until 2010 the tax incentives in favour of exporting industries. In 2007, Tunisia also prepared the completion of the free trade zone with the European Union for industrial products.

Modes of establishment: mainly acquisitions The distribution by type of projects in 2007 shows a rather weak proportion of projects of production (creation, extension or delocalization of activity): a third of the projects and amounts. Brownfield or extension projects hardly reach 5% of the amounts (60 projects), whereas they represent in general a consequent source of foreign investment in other regions of the world. 35% of all projects have a financial dimension (acquisitions, privatisations), but that represents about half (49.5%) of the invested amounts. The remainder of the 2007 projects portfolio relates to the setting‐up of subsidiary company or branches (15% of the number of projects, but not very significant amounts)


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and to partnerships (joint‐venture, etc.) with approximately 16% of the projects and amounts.

Leading sectors: real estate and energy ahead Whereas banking was dominant in 2006, it is the sector of real estate and transport which is the most attractive in 2007, while the energy sector benefits from the strongest progression: +80% in value!

The average budget per project (all sectors) amounts to 129 million euros in 2007, against 168 in 2006, reflecting a significant fall of the number of very large announced projects, while at the same time the number of projects (in particular in real estate) is in progression.

The number of projects in the construction industry and transport infrastructure has been strongly increasing since 2005 (more than 100 projects per annum for 2 years), while the announced amounts, even spread over the envisaged duration of realization, passed from 9 billion euros in 2006 to more than 14 billion in 2007. Material industries (Glass, cement, minerals, wood, and paper) fully benefit from this boom (63 projects and almost 10 billion euros of FDI). The local offer of cement, a material which suddenly became very expensive, has for a number of years been unable to cope with this exponential demand: projects of creations or extensions of cement factories have multiplied in all MEDA countries.

Foreign investors are solicited to increase the production of hydrocarbons in the Mediterranean, in a global context of durable price hikes. Exploration, extraction and transformation were the object in 2007 of spectacular FDI projects announcements (86 projects), worth a total 12.6 billion euros (around 7 billion in 2006), that is to say 20% of the total amounts invested into MEDA in 2007.

Heavy industries (metallurgy, chemicals‐plastics‐fertilisers) enjoy this same interest. FDI projects in these sectors aim either at addressing foreign demand through exports (production of aluminium in Algeria or fertilisers in Egypt and Jordan) or at satisfying local markets in rapid expansion (case of Turkey for example). Metallurgy attracted about 30 projects (against 5 on average the previous years), representing investments of several billion euros for this year and the years to come, mainly in Algeria and Turkey. Chemistry is becoming a regional strength (approximately 30 projects per annum since 2005, FDI flows above 2 billion euros in 2007). The fertiliser


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industry is also thriving, counting on significant local resources: abundant phosphate (Morocco, Jordan, etc.) and cheap natural gas (employed for the production of nitrogen). World demand is to remain high, thanks to the growing needs of Asia.

Manufacturing industries with strong spill‐over effects, typically the case of the automotive industry, have continued to attract many projects (approximately thirty projects per annum since 2003 for the automotive industry, with FDI flows close to 800 million euros over 3 consecutive years). The installation of assembly factories in the South in general (Renault‐Nissan in Tangier‐Med for instance), and not only in Turkey, which will also bring in subcontractors, is a strong signal for other industries facing the same competitive constraints (costs, dynamic supply‐chain). Subcontractors in the aeronautics industry follow the same trend, while businesses in the sector of electric, electronic & medical hardware, mechanics and machinery maintain or increase their investments in the Mediterranean. Projects in electronic ware (white goods, etc.) remain however a quasi‐monopoly of Turkey, which confirms its manufacturing vocation for the European markets in the eyes of the large manufacturers of electric household appliances.

Textile‐clothing suffers from a strong deceleration, with only 8 projects this year against 40 in 2006 and investments flows below 200 million euros. Agro‐business attracts FDI projects worth more than one billion euros, a good performance.

Regarding services, banking and insurance comes first (14% of the projects in 2007 and 17% of the amounts), followed by telecoms (3.3 billion euros for 25 operations). Tourism marks a pause this year, needing time to digest the mega‐projects announced the previous years.

The data processing and software sector has been attracting between 40 and 50 projects per annum for 3 years, with invested amounts in net retreat in 2007 compared to the year 2006, which was marked by large American acquisitions in Israel. A new trend to be taken into account: the increased visibility of Morocco and Tunisia.


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Figure 8. Number of projects and FDI flows by sector in 2007 (MIPO, in €m)

127

86

115

63

29

30

49

37

28

13

29

34

10

18

11

49

15

8

47

7

1

3

25

0 5 000 10 000 15 000

PW, utilities, logistics

Energy

Banking & trade

Glass, minerals, wood

Telecom

Metallurgy

Chemicals

Tourism, catering

Distribution

Agro‐business

Other or not specified

Automotive

Electr. hardware

Transport equipment

Drugs

Electronic components

Software

Mechanics & machinery

Textile

Consulting & services

Electronic ware

Biotechnologies

Furnishing & houseware

FDI amount in €m

Nb. of 2007 projectsFDI Inflows


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As for services to businesses (solicitors, facility management, call centres, etc.), they are more dynamic than ever. The multiplication of the projects in these sectors reflects as much the opening of local markets and the new needs created by the presence of more foreign companies consuming services in all kinds, than a strong demand for export (call centres, business process outsourcing). MIPO registered 50 projects in 2007 (a figure in constant progression since 2003), for amounts lower than 200 million euros (services depend on human capital).

Too few investments with strong spillovers

It is to be feared that the majority of FDI projects in energy, using mainly imported equipment and workers, and exporting products often little processed, bring little local added value (apart from the revenue paid by the operator). Idem for certain forms of real estate (second homes for the diaspora). On the contrary, the light industries (agro‐business, mechanics, house ware, etc.), well connected to the other sectors (but too little represented in FDI patterns), can better spread the benefits of the foreign investment into the rest of the economy.

The prize list of the largest FDI projects It is possible to consult the detailed data on the projects detected by the MIPO observatory on www.anima.coop. The figure below gives an overview of the announced budgets above a billion euros, which are not necessarily the most interesting nor the most significant. 5 Figure 9. Seventeen projects above 1 billion EUR announced in 2007 1. Libya. ENI (Italy) is to pay half of a joint investment programme with Libyaʹs

NOC worth 28 billion USD over 10 years (€10 816 mln). 2. Tunisia. Dubai Holding / Sama Dubai (United Arab Emirates) laid foundation

stone of Century City and Mediterranean Gate mega project in Tunisʹ southern lake area, worth 14 billion USD over 15 years (€ 10 231 mln).

3. Egypt. Lafarge (France) buys Orascom Cement for USD 12.9 billion, including a significant stake in Lafarge worth 4.1 bn USD (€ 6 431 mln).

5 Announced FDI, divided by the number of years of implementation of the project (often 3 to 10 years for real estate projects).


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4. Egypt. Damac (United Arab Emirates) to invest 30 EGP billion in a project in New Cairo, the first phase being called Hyde Park (€4 072 mln).

5. Turkey. Socar (Azerbaidjan). The State Oil Company of Azerbaijan and Turkey’s Turcas set up a JV for a 10 billion USD oil refinery project in Ceyhan (€3 727 mln).

6. Algeria. Emaar Properties (United Arab Emirates) to invest IN an ambitious tourism project in Colonel Abbes, west of Algiers, to be developed on an area of 109 hectares (€2 923 mln).

7. Algeria. Mubadala Development + Dubal (United Arab Emirates). A JV formed by Moubadala Development and Dubal to own 70% in a 5 billion USD aluminium smelter project, while Sonatrach‐Sonelgaz will hold the rest (€2 558 mln).

8. Turkey. ING (Netherlands). Turkeyʹs Oyak Bank to be sold to Dutch ING Bank for 2.673 billion USD (€1 953 mln).

9. Turkey. Indian Oil Corporation (IOC, India) has won the approval of Turkey’s energy regulator for setting up a 4.9‐billion USD refinery in Ceyhan (€1 826 mln).

10. Egypt. Majid Al Futtaim (MAF) (United Arab Emirates) plans to invest 12.5 billion LE over the next 5 years for 12 new outlets for retail and commodity distribution (€1 697 mln).

11. Libya. Petro‐Canada (Canada) to invest heavily in a joint investment programme with NOC, worth 7 bn USD, in exploration projects in the Sirte Basin (€1 696 mln).

12. Turkey. National Bank of Greece (Ethniki, Greece). NBG’s total participation in the share capital of Finansbank now amounts to 89.44%. (€1 646 mln).

13. Israel. MTS (International). The consortium, including Chinaʹs CCECC, Soares da Costa and Siemens wins a BOT contract for the construction of the Tel Avivʹs light train red line (€1 302 mln).

14. Turkey. Malaysia Airports Holdings (Malaysia). A consortium with Malaysia Airports and Limak to spend 3.447 billion USD to build a new terminal and run for 20 years the Sabiha Gokcen Airport (€1 259 mln).

15. Turkey. Fraport (Germany) will operate with other partners 3 terminals at Antalya, Turkeyʹs second‐largest airport, thanks to a successful Euro 2.37 billion bid (€1 209 mln).

16. Algeria. Total (France) to invest 51% of 3 billion USD to build and manage a petrochemical plant in Arzew; Sonatrach investing the rest (€1 096 mln).

17. Egypt. Abraaj Capital (United Arab Emirates). The Dubai‐based investment company takes control of Egyptian Fertilisers Company for 1.4 billion USD (€1 023 mln).


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Conclusion: how can MEDA achieve a lasting attractiveness? Beyond the encouraging achievements in direct investment towards MEDA in 2007, what is at stake for ANIMA and its Mediterranean partners is to find out how to better ʺrootʺ European or world companies in the Euromed market and how to turn this market into a durable and profitable one. That would involve:

1. making transactions safer (guarantee scheme, arbitrations, protection of intellectual property etc.);

2. financing productive SME and industry in general ‐ and not only blue chip companies and real estate (cf. proposals by ANIMA regarding a scheme suiting emerging companies);

3. identifying and developing the principal markets and certain niches (necessary work initiated by ANIMA through sectoral studies which need to be refined and transformed into action plans);

4. transferring knowledge and technology towards the south,

5. fostering partnerships;

6. creating industrial groups or networks/clusters with regional vocation (this report intends to highlight some of the existing ones);

7. defining mutually beneficial roles between the North and the South of the Mediterranean‐ as opposed to shameful delocalization (approach followed by European regions the likes of Lombardy or Catalonia, with a mix of clusters specialising in the MEDA countries, of funds of support, industrial policy etc.) ;

8. bringing back trust and increasing the attractiveness of the countries and the territories.

These efforts will be continued and amplified within the framework of the Invest in Med project, which ANIMA will start implementing with its partners in 2008. Institutional changes ‐ SME agency, ʺnew neighbourhoodʺ fund, development banks, institution providing guarantees, etc. will also be necessary. ANIMA is convinced of the usefulness (including a symbolic one) of these instruments, and of an approach in terms of ʺconcrete projectsʺ.


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2. Euro-Med integration or Euro-Med-Gulf triangle?

Investors from the Gulf have made many headlines in 2007: great projects in real estate or tourism (projects of Emaar in Algeria), or large acquisitions (privatisation of Al Watany Bank in Egypt in favour of National Bank of Kuwait). Gulf investors earned a reputation as conquerors with deep pockets, ready to overpay assets in order to capture revenues, monopolising the best lands, fuelling real estate speculation and the inflation affecting building materials. As in any caricature, this hardly flattering portrait conceals a share of truth.

Their contribution to the development of the MEDA region is however more positive than it appears at first sight: whereas the European Union invests relatively little in its Mediterranean neighbours, the Gulf could bring to the region the necessary capital to trigger a true takeoff. If the ongoing Euro‐Mediterranean economic integration process is not sufficient to ensure the development of the South, should we not imagine a larger framework of co‐operation which would integrate the Gulf and its investors?

Context: Dubai plays the troublemaker in the Barcelona process The Barcelona process played a positive role in the increase in FDI flows, by reinforcing the general attractiveness of the southern shore. The integration of the Euro‐Mediterranean economic area is progressing however rather slowly, and the companies from the Gulf, emerging countries, from China and India engulfed this new intermediate market, well located, at the doors of Europe.

This renewed interest is welcome, but it is not certain that it is enough. The contribution of these new investors might be significant quantitatively, but the quality of their projects is sometimes poor (weak multiplier effect, limited repercussions), compared to the importance of the stakes: million of durable jobs have to be created each year to simply maintain the current rate of unemployment of young people.


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The Euromed integration, a necessary condition, but one of many, of the takeoff of the MEDA region The macroeconomic data seem to indicate that Europe and its Mediterranean neighbourhood entered one period of (weak) convergence since 2000. The MEDA region enjoys each year a growth per capita which is higher of almost 1% than that of Europe. But with a GNP per capita of 6 209 USD in 2007 (MEDA average, in PPP), MEDA is on the level of Western Europe in the Fifties, or Romania in 1975. Based on that difference, a simple calculation indicates that MEDA countries would spend 157 years to catch up with European living standards, while it took only 25 years to Greece and Portugal to do it (cf. ʺBarcelone, processus inachevé ʺ, ANIMA 2008).

Barcelona certainly encouraged development of trade between the EU and the Mediterranean partner countries. These ten countries represent from now on 9 % of total external exports of the EU‐27 ‐ against 5% a few years ago. The importance of Europe as commercial partner is very variable from one MEDA country to another, in addition to being asymmetrical (great commercial dependence of the MEDA region which represents an outlet of less importance for the EU). The EU is thus a paramount commercial partner for the Maghreb, while it weighs for only 3% of exports of Jordan. Intra‐MEDA trade remains weak (5% of total trade in MEDA).

As regards FDI, the same asymmetry may be observed: if Europeans remain the principal investors in the region, the proportion of European FDI invested in the Mediterranean neighbourhood is very small compared to that of the American flows in Mexico, or Japan in its Asian vicinity. The most recent set of complete statistical series made available by the European Commission (European Union Foreign Direct Investment Yearbook 2007) show for example that the investments of EU Member States out of the Union represented in 2005 less than one third of the total FDI emitted by the Member States this year (172 billion euros on a total of 600 billion, that is 28% only). Among the receiving regions, Canada‐USA, Japan and EFTA (Swiss, Norway, Iceland etc), received 72 of this 172 billion euros (42%). The MEDA region came far behind: behind Asia, behind Latin America, behind Central and Eastern Europe, with a share which culminates in 3%.

The first figures available for 2006 however show a considerable increase in the outward FDI invested out of the EU, which would have reached 260,2 billion euros (+11% compared to 2005). MEDA share one in this total should


27

increase, insofar as Turkey would have collected alone nearly 4% of this extra‐EU FDI, that is to say 10.5 billion EUR (Eurostat, EU Foreign Direct Investment in 2006, April 2008).

Figure 10. Distribution of European FDI outside the EU, by block of destination (in % of total extra‐EU FDI, European Union Direct Foreign Investment Yearbook 2007)

Region of destination 2001 2002 2003 2004 2005 Total Emerging: 34% 29% 26% 45% 36% Incl. South‐East Asia 21% 14% 11% 19% 15% Incl. Latin America 10% 8% 4% 14% 4% Incl. MEDA 1% 3% 3% 3% 3% Incl. Eastern Europe‐Russia

2% 4% 8% 8% 13%

Others non‐EU6 66% 71% 74% 55% 64%

The development of trade and the progressive acceleration of European FDI flows towards MEDA therefore appear insufficient to ensure the economic takeoff of the MEDA countries. Among the external funding available, migrants’ remittances, traditional development aid, or funds invested in the private sector by the development banks (EIB‐FEMIP, World Bank‐IFC, etc.) can be effective, but it is a FDI boom which appears necessary. Foreign direct investment is a powerful vector of economic integration and sustainable structural change.

Where will this additional investment effort come from? With the fresh impulse brought by the French initiative of the Union for the Mediterranean, the time of the assessment came for the Barcelona process: is it enough to stick to a deepening of the economic relations between Europe and its Mediterranean vicinity? Is it not necessary to integrate in the equation the increasing interest expressed by another neighbour, that of the Gulf, for the Mediterranean?

6 Others non‐EU: mainly EFTA, USA, Canada, Japan. The European Commission makes a difference between these developed markets which get the most of external EU FDI and the “emerging markets” which receive the remainder (South East Asia, Latin America, Russia, MEDA and Eastern Europe).


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Presence of the Gulf in the Mediterranean: in search of economic rents or healthy contribution in new blood? A great geographical, cultural and linguistic proximity forced North Africa, Europe and the Middle East to weave a complex fabric of relations. Pending the completion of physical infrastructure which will further strengthen this proximity (power grids, telecommunications, pipelines, trans‐Maghreb motorway, projects of a bridge between Egypt and Saudi Arabia and of a tunnel under Gibraltar), and the advent of a great EuroMena free trade area (Euromed free trade zone envisaged by the Barcelona process for 2010, Agadir Agreement for intra‐MEDA trade, EU‐GCC Agreement of co‐operation of 1988, Customs Union, Monetary Union and future Common Market of the Gulf), foreign direct investments constitute a strong means to bind these 3 blocks durably, while fostering the material convergence of their economic interests.

Gulf and Europe dominate foreign investment flows in the Mediterranean

Investors from the Gulf (GCC or the broader block ʺGulf‐MENAʺ with Mauritania, Libya, Sudan, Yemen, Iran, Iraq, Afghanistan and Pakistan) had surpassed Europe in 2006 as the main issuers of FDI into the MEDA region (cf. Figure 5).

With the surge of European investments registered in 2007, and the net decline in North American projects, the Gulf and Europe now seem to be the 2 pillars of foreign investment in the Mediterranean, respectively accounting for 34 and 40% of the amounts announced in 2007 (18% of 2007 projects for the Gulf and 47% for Europe). Over the 5 last years, the Gulf cumulates 30% of the total of announced amounts, against 37% for Europe. These two regions weigh thus together 67% of the total in announced amounts, and 66% of the number of projects.


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Figure 11. Relative contributions of the main FDI‐emitting regions in MEDA (% of annual flows, ANIMA‐MIPO 2003‐07)

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

2003 2004 2005 2006 2007

Asia‐Oceania

MEDA‐10

USA/Canada

Gulf & otherMENA

UE27 + EFTA

Competing or complementary investment strategies?

A certain geographical complementarity

Figure 12 shows that the principal FDI‐issuing regions in MEDA have distinct preferences. These strong affinities are initially the product of geography; the most significant flows being established between the closest blocks (Europe‐Maghreb or Europe‐Turkey, Gulf‐Machrek). But physical geography can be overcome or reinforced by cultural or historical affinities: privileged business connections of the family and patrimonial capitalism of the Gulf with Jordan, Lebanon, Syria or Egypt, intimate relations between the Californian Silicon Valley and the Israeli Jordan Valley.

The complementarity of the principal investments flows is striking:

Europe invests especially in Turkey, in the Maghreb and in Egypt,

the Gulf mainly in Machrek,

the United States concentrates on Israel, and Canada on the Maghreb and Egypt,

investors from Asia and other emerging economies (Russia, South Africa, etc.) seize any opportunities in Machrek (Egypt and Syria), in Turkey, and in Morocco.


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Another phenomenon ought to be highlighted: the regular progression in the number of intra‐MEDA FDI projects, with cumulated flows which approach 10 billion euros over 5 years (2 billion euros in 2006, 2.5 in 2006 and more than 4 in 2007), for a total of 163 projects, including 55 for 2007 alone. The most significant flows are by far those from Egypt towards Algeria (and also Turkey), from Jordan to Egypt, and from Lebanon to Jordan and Egypt.

Figure 12. Map of the main FDI flows cumulated over 5 years, by region of origin and destination (ANIMA‐MIPO, 2003‐07)

Source: MIPO 2003 to 2007

MAGHREB

€ 17,8 bnOTHER MEDA*

€2,

4 bn

MACHREQ

€ 23,1bn

€ 5,1bn

€ 30 bn

€ 37,8

bn

€ 27,3bn

€ 10,3 bn

€ 5,2 bn

Europe€ 71 bn

Asia & emerging c.

€ 17,9 bn

Gulf & MENA€ 59,4

bn

€ 9,6 bn

€ 4,2bn

USA/Canada€ 36,6 bn

€ 12bn

Other MEDA* =Turkey, Israel, Cyprus, Malta

Individual preferences of Gulf investors

The United Arab Emirates are, among the GCC members, the main investors in MEDA: 30.6 billion euros since 2003, that is, more than half of the GCC total, and 183 projects. Saudi Arabia and Kuwait come second with, for each of them, flows slightly above 11 billion and more than 100 projects. Bahrain and Qatar are a notch below (2.3 and 2.9 billion euros and about 20 projects each), while the Sultanate of Oman does not appear in the table below for lack of projects.

As regards amounts invested, Egypt is the preferred destination of the UAE, Kuwait and Qatar‐based investors, and the second most important


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destination for Saudi companies. The latter indeed prefer Turkey, where Saudi investors announced 8 significant projects in 2007: massive investments by Oger in telecom and banking, acquisition of banks and food‐processing industries. Investors from Bahrain are more interested in Jordan and Morocco (Batelco owns Umniah Telecom in Jordan, real estate and tourism projects by Gulf Finance House in these 2 countries).

Figure 13. FDI from the Gulf by country of origin and destination (ANIMA‐MIPO 2003‐07, ʺFlowʺ in million of euros and ʺNbʺ, number of projects)

Origin Bahrain Kuwait Qatar Saudi A. UAE Total Destination Nb. Flow Nb. Flow Nb. Flow Nb. Flow Nb. Flow Nb. Flow A. Palestin. 2 288 3 89 2 N.R 7 377 Algeria 1 73 6 2 081 13 425 10 1 132 31 3 711 Egypt 4 229 23 2 890 4 1 067 35 2 360 44 16 548 111 23 093Jordan 10 1 497 18 1 359 4 710 12 1 211 35 1 588 80 6 365 Lebanon 1 N.R 13 478 10 493 19 1 040 43 2 010 Libya 1 N.R 1 55 1 N.R 5 138 8 192 Morocco 4 484 9 201 1 54 14 425 34 2 110 62 3 275 Syria 3 87 28 2 245 6 669 15 1 220 12 1 056 64 5 277 Tunisia 7 295 1 403 6 61 12 3 783 26 4 543 Turkey 7 1 116 1 N.R 12 4 983 10 3 277 30 9 375 Total 24 2 369 114 11 009 18 2 903 120 11 266 183 30 672 462 58 219

Greenfield projects often oversized

The projects by Gulf‐based investors in the Mediterranean are characterized by their estimated budgets: the average budget is higher than 268 million euros, against 70 for European projects. The average direct job creation per project is of 171, against 95 for a European project, considering that the Gulf and Europe are the principal foreign sources of job creation in the region. The sustainability of these jobs is more difficult to judge, but it can be assumed that part of the jobs created by Gulf investments might last only the time of the realization of the facilities (real estate projects), while European projects usually generate more sustainable jobs in services or industry.

The majority of the detected Gulf projects are launched by large private or public holdings, but one can suppose that the rate of detection of projects is weaker for the Gulf than for Europe, insofar as the Gulf business environment is less conducive to transparency and publicity. A greater number of the medium and small projects might therefore go unnoticed by


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our MIPO observatory. Gulf SMEs are consequently seriously under‐represented (less than 5% of detected Gulf projects over 2003‐07).

Gulf and Europe‐based investors are rather similar in the preference given to projects known as ʺgreenfieldʺ (creation of new facilities, 35% of the number of European projects over 5 years, and 40% of those of the Gulf), even if the budgets differ: greenfield make only 20% of the amounts invested by Europe in 5 years, and 53% for the Gulf. External growth (acquisition, including privatisation), accounts for respectively 27 and 23% of the projects of Europe and the Gulf, but represents more than 60% of the total of European flows against less than 30% for the Gulf. These figures mean that investors from the Gulf are not afraid to launch out in greenfield projects with significant budgets, whereas European investors prefer to acquire existing companies or units, including SMEs, to develop them.

Limited positive spillovers

One way of measuring the quality of an FDI project is to consider the importance of direct and indirect local spillovers, in particular the multiplier effect of the investment, i.e. the insertion of the project in the local chain of value (customers, suppliers, subcontractors).

Concerning Gulf investments into MEDA, one can regret the very clear preponderance of real estate, tourism and American‐style shopping malls projects (53% of the total amounts, and 48% of the number of projects over 2003‐2007). Energy, heavy chemistry industry, cement and metallurgy account for 13% of the total, while telecom and bank represent respectively 15%. This sectoral mix is the reflection of the model of unbalanced development of the economies of the Gulf, in which consumer goods industries and light industries are not very present.

The impact of the investments coming from the Gulf on the sectoral distribution of the FDI projects in the MEDA region is very marked. The correspondence between the favoured sectors of investments of Gulf‐based companies and the first 10 sectors in value in 2007 (see Figure 8) is indeed almost perfect.


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Conclusion About thirty private or public holdings are the source of the bulk of Gulf FDI in the Mediterranean.

Saudi Arabia Kuwait Bahrain UAE Qatar Savola Bin Laden National Commercial Bank (Alahli)

Al Rajhi Dallah al Baraka

Nesco Oger

KIPCO NBK Global Investment House

M.A. Kharafi

Zain National Industries Group (Noor)

Al Aqeelah

Ahli United Bank

Gulf Finance House

Batelco

Aramex Abraaj Capital Damac Dubai Holding DP World Majid al Futtaim Emaar Etisalat Dubal Gulf Finance House

Diar Qtel

Some already are global brands, others aspire to it.

The champions of the Gulf have changed a great deal. They have attracted CEOs and top executives from the greatest multinational companies (half of the top management of Dubai Ports World is Anglo‐Saxon for example) and their personnel is trained with the most modern management sciences. Their investment strategies have been rationalized, and are now less related to prestige and more to the profitability and long term expansion strategies.

The complementarity of European and Gulf investment flows in the Southern Mediterranean area benefits all MEDA countries. Investments coming from the Gulf usefully come to compensate for the lack of enthusiasm of European companies, and can sometimes create beneficial emulation.

The considerable means that the companies of the Gulf choose to invest in sectors of rent however represent a risk which should not be underestimated: the absorption capacity of the MEDA countries is limited, and the many crowding‐out effects which affect many local operators feed what could become resentment towards foreign interests. The rapid urbanisation and the establishment of great polluting industrial facilities on the Mediterranean littoral involve significant environmental risks.


34

Improving the quality of FDI is essential, and MEDA regulators are responsible in the first place for defining limits and enforcing them. The governments can maximize the local impacts of FDI by requiring counterparts, in terms of local content, of sustainability, in return for the preferential treatment which is often granted to Gulf champions (land at low prices, etc). The unbalanced economic development which is taking place also has its hidden costs, especially in those very fragile human communities.

If there were a means of combining the financial resources of the Gulf and European technology and know‐how, it would seem possible to meet the social needs of MEDA countries in a mutually beneficial, and advantageous triangular relationship.

Figure 14. The 20 most important projects of the Gulf in the MEDA region in 2007 (ANIMA‐MIPO, total budgets in million euros).

(More consultable projects on line on www.anima.coop )

1. Tunisia. Dubai Holding / Sama Dubai (UAE) laid foundation stone of Century City and Mediterranean Gate mega project in Tunisʹ southern lake area, worth 14 billion USD over 15 years (€10 231 mln).

2. Egypt. Damac (UAE) to invest 30 billion EGP in a project in New Cairo, the first phase being called Hyde Park (€4 072 mln).

3. Algeria. Emaar Properties (UAE) to invest in an ambitious tourism project in Colonel Abbes, west of Algiers, to be developed on an area of 109 hectares (€2 923 mln).

4. Algeria. Mubadala Development + Dubal (UAE). A JV formed by Moubadala Development and Dubal to own 70% in a 5 billion USD aluminium smelter project, while Sonatrach‐Sonelgaz will hold the rest (€2 558 mln).

5. Egypt. Majid Al Futtaim (UAE) plans to invest 12.5 billion LE over the next 5 years for 12 new outlets for retail and commodity distribution (€1 697 mln).

6. Egypt. Abraaj Capital (UAE). The Dubai‐based investment company takes control of Egyptian Fertilisers Company for 1.4 billion USD (€1 023 mln).

7. Egypt. Barwa Real Estate (Qatar) purchased 1,980 feddans of land for 6.11 billion EGP (€829 mln).

8. Egypt. Dubai Holding / Dubai Financial Group (UAE). The financial arm of Dubai Holding to acquire for 1.1 billion USD a 25% stake in EFG‐Hermes (€804 mln).

9. Turkey. National Commercial Bank (Alahli) (Saudi Arabia) is to pay just over 1bn USD to acquire a 60% in Türkiye Finans Katılım Bankasi, a leading Islamic‐style bank (€731 mln).


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10. Egypt. Emaar Properties (UAE) to launch a new project, the 1 billion USD New Cairo City residential community (€731 mln).

11. Egypt. National Bank of Kuwait (NBK) (Kuwait). After a successful bid for a 51% stake in Al Watany Bank, NBK eventually acquired a total 93.77% stake for extra 2.5 bn EGP (€689 mln).

12. Egypt. Etisalat (UAE). The 66% owned Egyptian subsidiary of UAE’s Etisalat to spend 1.4 billion USD over 3 years in developing its telecom infrastructure (€675 mln).

13. Egypt. Damac (UAE) paid 4.74 billion EGP for 1,500 feddans of land for future real estate projects in Egypt (€643 mln).

14. Turkey. Dubai Holding / Sama Dubai (UAE). A branch of Dubai Holding buys land In Istanbul and announces real estate projects totalling 5bn USD (€621 mln).

15. Morocco. Al Maabar / Reem (UAE). The Emirati consortium to launch Reem Morocco, a local subsidiary in charge of its 6.5 billion MAD Atlas Garden project in Marrakech (€586 mln).

16. Turkey. Oger / Turk Telecom‐Avea (Saudi Arabia). Mobile operator Avea, controlled by Ogerʹs Turk Telekom, to invest heavily in its infrastructures thanks to a 1.6 billion USD dollar syndicated loan (5€21 mln).

17. Egypt. Emaar Properties (UAE). The Emiratesʹ real estate developer to launch a new project, a 700 million USD mix use project on the Cairo‐Alexandria Desert Road (€512 mln).

18. Egypt. DP World (UAE) acquired a 90 % stake in Egyptian Container Handling which owns 90% in Sokhna Port for 670 million USD (€490 mln).

19. Turkey. Abraaj Capital / Almond Holding (UAE). Almond Holding AS, a subsidiary of Abraaj Capital Ltd, to acquire a 39.4% stake in Acibadem Saglik Hizmetleri and Ticaret for 600 mln USD (€438 mln).

20. Syria. Al Aqeelah (Kuwait). Building of a low income housing area near Damascus and development in Sayedah and Zeinab for 400 mln EUR (€400 mln).

3. Sectoral analysis of FDI into MEDA

Before analyzing the projects announced in 2007, it is interesting to put in perspective the data of this year within the frame of the 2003‐07 period. Indeed since 2003, services to companies, industries of intermediate goods and equipment goods are the main motors of the growing FDI flows towards MEDA.

Boom of the equipment and processing industries Whereas the region remains characterised by a certain industrial underdevelopment, foreign investors are more and more interested in the productive potential of Mediterranean economies which can count on a young and abundant workforce, and cheap sources of energy.

The remarkable boom in FDI over the 2003‐2007 period is partly explained by the multiplication of projects in the processing industries (energy‐consuming industries such as hydrocarbon products, building materials, metallurgy) and a qualitative improvement in the manufacturing projects. Many companies, European in particular, see the interest for them to increase the share entrusted to their Mediterranean neighbours in their value chain.

Intermediate goods industries are the sectoral group which has experienced the strongest progression over the period, as much in value (FDI flows), as in the number of projects registered. FDI in consumer goods (furnishing and houseware, textile, agro‐business) did not truly take off.

The attractiveness of services to businesses was confirmed in 2007, with a total of 236 projects (212 in 2006) and announced amounts close to 15 billion euros.

Personal and domestic services attract projects mainly in the distribution and tourism sectors (also some investments in the private health sector and media/entertainment, in Turkey above all).


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Figure 15. FDI flows per sectoral subset over 2003‐07 (€m, ANIMA‐MIPO)

Services to businesses

Intermediate goods

Capital goods

Personal servicesConsumer

goods 0

5 000

10 000

15 000

20 000

25 000

30 000

2003 2004 2005 2006 2007Services to businesses

Intermediate goods

Capital goods

Personal services

Consumer goods

Services to businesses: telecom services, consulting and services to companies, data‐processing‐software, bank‐insurance.

Personal and Domestic: tourism‐catering, health‐education‐others, trade‐distribution

Capital goods: automotive, construction‐public works, electric‐electronic hardware, mechanics and machinery, aeronautical, naval & railway equipment

Intermediate goods: glass‐cement‐minerals‐wood‐paper, chemicals‐plastics‐fertilisers, metallurgy, electronic components, hydrocarbon energy‐derivatives.

Consumer goods: agro‐business, furnishing‐houseware, electronic ware, drugs‐cosmetics, textile‐clothing‐luxury

2007 sectoral prize list

The energy sector would come first without the strong appetite of foreign investors for real estate and infrastructures projects. Whereas banking and insurance dominated the landscape of foreign investment in MEDA in 2006, it is the energy sector which experienced the strongest progression in 2007: +80% in value!


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Figure 16. Ranking per sector (MIPO 2007, number of projects and amounts in €millions)

Sectors Projects 2007

% Total 2007

Flow 2007

% Total 2007

1 Construction, transport, utilities 127 15,2% 14 677 22,6% 2 Energy 86 10,3% 12 605 19,4% 3 Bank, insurance, other financial services 115 13,8% 10 958 16,8% 4 Glass, cement, minerals, wood, paper 63 7,6% 9 925 15,3% 5 Telecom & internet operators 25 3,0% 3 229 5,0% 6 Metallurgy & recycling of metals 29 3,5% 2 256 3,5% 7 Chemicals, plastics, fertilizers 30 3,6% 2 206 3,4% 8 Tourism, catering 49 5,9% 1 457 2,2% 9 Distribution 37 4,4% 1 274 2,0% 10 Agro‐business 28 3,4% 1 068 1,6% 11 Other or not specified 13 1,6% 909 1,4% 12 Car manufacturers or suppliers 29 3,5% 823 1,3% 13 Electric, electronic & medical hardware 34 4,1% 672 1,0% 14 Aeronautics, naval, rail equip. 10 1,2% 667 1,0% 15 Drugs 18 2,2% 544 0,8% 16 Electronic components 11 1,3% 486 0,7% 17 Data processing & software 49 5,9% 439 0,7% 18 Mechanics and machinery 15 1,8% 356 0,5% 19 Textile, clothing, luxury 8 1,0% 194 0,3% 20 Consulting and services to companies 47 5,6% 167 0,3% 21 Electronic ware 7 0,8% 87 0,1% 22 Biotechnologies 1 0,1% 69 0,1% 23 Furnishing and houseware 3 0,4% 0 0,0%

Total 2007 834 100,0% 65 067 100,0%

Reinforced concentration of FDI flows on some sectors This year still, foreign investment in the region concentrated on a small number of sectors, in services as in industry. The sectoral analysis of the data provided by the MIPO observatory shows that this concentration was even accentuated: the first five sectors in value (flow) account for 76% of total announced amounts in 2007 for only 53% of the total number of projects (respectively 65% and 51% in 2006).


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Top 5 in value in 2007

Whereas the composition of the top 5 has been stable since 2005, cement came to propel the sector ‘glass‐cement‐mineral‐wood‐paper’. In 2007, foreign investment in this sector rose to historical heights with as emblematic operation, the purchase by Lafarge of Egypt’s Orascom Cement. This sector weighed nearly 10 billion euros in FDI inflows in 2007, against 3 the previous year.

Figure 17. Strong concentration of FDI flows on few sectors (MIPO 2007) Perimeter (sectors)

Aggregate 2007 (mln€)

% of total 2007

Aggregate nb. projects 2007

% of total 2007

Top 5 51 394 79% 416 50% Top 12 61 387 94% 631 76%

Top 5 (in the order): Public works‐real estate‐transport‐utilities, Energy, Bank‐insurance‐others financial services, Glass‐cement‐mineral‐wood‐paper, Telecom & Internet Operators

Top 12: Idem + Metallurgy and recycling, Chemicals‐plastics‐fertilisers, Tourism‐catering, Distribution, Agro‐business, Others (Personal services), Car manufacturers or suppliers

Sectoral distribution of 2003-07 FDI projects

The stock of announcements of FDI projects detected by ANIMA over the 2003‐07 period is made up essentially of 4 sectors, each one weighing approximately 15% of the total amounts, plus 2 others weighing approximately 8‐9%.

Figure 18. Total FDI by sector (ANIMA‐MIPO, 2003‐2007, €m)

Bank & insurance

15%

Telcom & internet14%

Public works‐real estate

14%

Cement, minerals

8% Tourism, catering9%

Others25%

Energy15%


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The 17 other sectors scrutinised by MIPO also make 25% of the total announced FDI inflows.

Relative constancy of the outperforming sectors The most attractive sectors experienced spectacular progression, which is rather welcome in a context of upgrade of the financial and physical infrastructures and industrial clusters in the region.

Figure 19. Four rising stars in the Mediterranean

0 4 000 8 000 12 000 16 000

Glass, cement, minerals, wood, paper

Bank & insurance

Energy

Public works, real estate, transport, utilities

2003 2004 2005 2006 2007

Difficult digestion of the heaviest real estate investments

The importance of foreign investment in the construction‐public works and real estate sectors can however cause interrogations regarding the absorption capacity of MEDA countries.

The FDI boom in the construction‐public works sector would be healthier if it came to renew and develop an often dilapidated and insufficient housing stock. The promoters, often foreigners, seem to prefer increasing their offer on the high end segment, which frequently targets foreign buyers. Part of the population and professionals of the sector can then find itself suffering from crowding out effects (availability of land, inflation of the prices and restricted access to building materials and construction machinery).


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The correlated boom in foreign and national investment in the building materials sector is therefore more than welcome.

Banking on the Mediterranean

The penetration, still strong in 2007 after an exceptional year in 2006, of foreign players in the banking and insurance sector is good news for all Mediterranean economies. The many barriers which restrain the access to funding are indeed often regarded as a major obstacle to general economic development. The arrival of these new players contributes to increasing competition, strengthening the branch networks and accelerating the launching of new banking and insurance products. These FDI projects can improve the conditions of development of a denser fabric of SMEs, after decades of monopoly of the large public companies for access to the loans allocated by the State Banks.

Tourism and telecoms await the next wave of FDI

New tourism projects remain abundant in the Mediterranean. However, after the many mega‐projects of 2006, investors seem to have calmed down and be launching more modest programmes.

Whereas in 2005 the estimated budget of the most significant tourism project reached 2 billion euros (Dubai International Properties in Morocco), the UAE‐based company Damac had revealed in 2006 a project on the Red Sea envisaging an investment of approximately 13 billion euros over 10 years (Gamsha Bay). In 2007, the most significant project detected by MIPO, that of Spanish Urbagolf in Morocco, involves a mere 700 million euros (in Souiria Laqdima, 30 km away from Safi).

Many mega‐projects announced the previous years will only start (except in the event of a pure and simple abandonment) in the months and years to come. The ANIMA‐MIPO observatory only takes into account, in its analysis, annualized amounts of FDI, i.e. the forecast total budget of the project, divided by the number of years (envisaged) of implementation.

As for telecoms, after 2 years of strong FDI inflows (projects worth about 10 billion euros announced each year in 2005 and 2006), the sector is going through quieter times.


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This might be only temporary, given the number of operations of privatisation planned for 2008 and of the new telecom licences which will be granted this same year.

Figure 20. Greater volatility in tourism and telecom

0 2 000 4 000 6 000 8 000 10 000 12 000

Telecom &internet operators

Tourism, catering

2003 2004 2005 2006 2007

A very variable entry ticket depending on the sector The invested amount is not always available7. This amount varied in 2007 from 4 million euros for a project in services to businesses to more than 300 million in energy, with 50 million for a tourism project. The average amount (all sectors) is 129 million euros in 2007, against 168 in 2006. These figures reflect a significant fall in the number of very large projects, while at the same time the total number of projects is in progression from one year to

7 The forecast invested amount is available in a strict sense only in 56% of the cases over the period 2003‐07. It is announced by the investors themselves, split with each investor according to its relative participation and only for the foreign share in case of partnership or joint‐venture. This amount must be considered as an approximation of the amount actually invested once the operation is carried out. The average entry ticket as calculated in figure 21 is obtained by dividing the total of the global estimated budgets by the number of detected projects.


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another. The 2003‐2007 average entry ticket (113 million EUR) is certainly over‐estimated, given the difficulty of detecting the small projects.

Figure 21. Average investment per project depending on the sector (ANIMA‐MIPO 2003‐07, €mln) Sectors 2005 2006 2007 2003‐07 Energy 108 182 334 184Public works, real estate, transport, utilities 154 325 262 236Metallurgy & recycling of metals 38 29 163 104Glass, cement, minerals, wood, paper 80 90 163 112Telecom & internet operators 588 352 162 341Bank, insurance, other financial services 73 123 100 93Chemicals, plastics, fertilizers 80 80 87 68Other or not specified 14 37 79 40Distribution 46 42 74 64Biotechnologies 0 18 69 15Aeronautical, naval & railway equipment 6 412 67 119Electronic components 181 362 52 170Tourism, catering 128 420 48 191Car manufacturers or suppliers 28 25 42 26Agro‐food business 16 111 41 41Drugs 10 40 31 24Textile, clothing, luxury 14 11 24 12Mechanics and machinery 1 301 24 92Electric, electronic & medical hardware 28 26 21 23Electronic ware 35 0 15 10Data processing & software 23 119 9 43Consulting and services to companies 6 1 4 3Furnishing and houseware 16 0 0 5Total 90 168 129 113


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FDI, driving force for employment Even if the data ʺemployment created by the operationʺ is not always available8, it is interesting to outline a ranking of the most creative sectors of employment. Total direct job creation in 2007 is not as important as in 2006, which was particularly rich in advertisements of construction mega‐projects (80,000 jobs in 2007 against 130,000 in 2006).

Figure 22. Direct job creation per sector (MIPO 2007) Sector Nb. projects 2007 Jobs created

Public works, real estate, transport, utilities 127 25 550 Car manufacturers or suppliers 29 17 710 Tourism, catering 49 14 426 Glass, cement, minerals, wood, paper 63 4 020 Consulting and services to companies 47 3 362 Distribution 37 3 200 Metallurgy & recycling of metals 29 2 030 Electric, electronic & medical hardware 34 1 816 Chemicals, plastics, fertilizers 30 1 490 Data processing & software 49 1 410 Bank, insurance, other financial services 115 1 365 Electronic components 11 625 Drugs 18 590 Aeronautical, naval & railway equipment 10 570 Telecom & internet operators 25 500 Agro‐business 28 307 Energy 86 200 Textile, clothing, luxury 8 100 Mechanics and machinery 15 40 Total 834 79 311

8 This data is only specified in 20% of the cases (MIPO 2003‐07). However, while taking account of those projects creating little employment (subsidiary company or representative office, acquisition of a holding, privatisation), this figure goes up to 50%. Four sectors do not appear in the table for lack of data: Biotechnologies, Furnishing & houseware, Electronic ware, Other or not specified.


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The aggregation of the ʺemploymentʺ data over 2003‐07 makes it possible to constitute a significant database from which to draw some conclusions: the sectors which create most jobs should receive due attention from the governments when defining targets and priority sectors.

Figure 23. Average number of jobs created per project, according to the sectors (ANIMA‐MIPO 2003‐ 07)

Sector Average job creation 1 Tourism, catering 448 2 Car manufacturers or suppliers 259 3 Textile, clothing, luxury 161 4 Electronic components 153 5 Public works, real estate, transport, utilities 128 6 Metallurgy & recycling of metals 127 7 Glass, cement, minerals, wood, paper 100 8 Consulting and services to companies 83 9 Telecom & internet operators 80 10 Aeronautical, naval & railway equipment 76 11 Electronic ware 75 12 Distribution 73 13 Agro‐business 71 14 Furnishing and houseware 67 15 Chemicals, plastics, fertilizers 47 16 Electric, electronic & medical hardware 32 17 Data processing & software 21 18 Biotechnologies 16 19 Drugs 15 20 Energy 14 21 Mechanics and machinery 14 22 Bank, insurance, other financial services 13 23 Other or not specified 1


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Review by sector

Public works, real estate, transport, delegated services

This composite sector gathers activities in rapid expansion: construction of dwellings or offices, transport or logistics services, delegated services and utilities such as sewage treatment or sea water desalination. 80 projects were detected in 2007 in the ʺPublic works‐delegated services” sub‐sector, against 47 for the ʺInfrastructures and services of transport‐logistics ʺ.

Public works and delegated services

Even though most of the 65 construction projects relate to high‐end resorts or prestige office towers, some projects also concern urban regeneration, social housing, major urban installations and industrial parks. Eight foreign projects relate for instance to industrial parks, including 6 in Egypt, a Turkish industrial park in Tarqumiya in the West Bank (Palestine), and an American project in Aqaba in Jordan. An agreement signed in April 2008 between the Housing Development Administration of Turkey (TOKİ) and the Kuwait Investment Authority, second biggest sovereign investment fund in world, envisages an entry of foreign direct investment in the sector of social housing, since the Kuwaiti fund would finance the construction of 66,000 apartments in the Kayabasi district in Istanbul.

As regards corporate real estate, the flows of foreign investments are reported to have topped in 2007 (668 billion EUR in the world according to Cushman and Wakefield), emerging markets presenting the strongest progressions. For the MEDA region, this trend results mainly in an increase of 137% of foreign investment in Turkish corporate real estate.

The breakdown of construction projects is as follows: Egypt collects 21 projects, followed by Morocco (15) and Algeria (13). The countries of the Gulf are at the origin of 30 projects, including 15 for the UAE (mainly in Machrek), while Europeans contribute 29 projects, including 11 for France (in the Maghreb).

Algeria entrusts its strategic investments in drinking water supplies to large international operators. This country attracts more than half of the 15 projects concerning delegated services (2 each for Morocco and Israel). The desalination of sea water is the principal centre of interest for foreign investors in the region (7 projects), followed by sewage treatment and garbage collection.


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Even if the most important real estate mega‐project goes to Tunisia in 2007 (and it might remain so for some years), Egypt receives 7 of the 11 most important projects (see figure 24). At the end of 2007, Algeria was still waiting for confirmation of the 4 or 5 large projects prepared by Emaar in and around Algiers. Only the residential and tourist complex envisaged in Colonel Abbès was taken into account for the 2007 MIPO report. Projects in Turkey are frequently shopping centres, registered in the “distribution” sector, while “purely” tourism‐oriented projects (resorts, etc.) are treated in the ʺtourism» sector.

Figure 24. Eleven real estate projects above 500 million euros in 2007 (total forecast budget) 1. Tunisia. Dubai Holding / Sama Dubai (UAE) laid foundation stone of Century

City and Mediterranean Gate mega project in Tunisʹ southern lake area, worth 14 billion USD over 15 years (€10 231 mln).

2. Egypt. Damac (UAE) to invest EGP 30 billion in a project in New Cairo, the first phase called Hyde Park (€4 072 mln).

3. Algeria. Emaar Properties (UAE) to invest an ambitious tourism project in Colonel Abbes, west of Algiers, to be developed on an area of 109 hectares (2 923 € mln).

4. Egypt. Barwa Real Estate (Qatar) purchased 1,980 feddans of land for 6.11 billion EGP (€829 mln).

5. Egypt. Emaar Properties (UAE) to launch a new project, the 1 billion USD New Cairo City residential community (€ 731mln).

6. Egypt. Solidere (Lebanon) teams up with local SODIC through a 50/50 JV to develop West Town, a 2.4 billion USD real estate project in Sheikh Zayed City (€702 mln).

7. Egypt. Damac (UAE) paid 4.74 billion EGP for 1,500 feddans of land for future real estate projects in Egypt (€643 mln).

8. Turkey. Dubai Holding / Sama Dubai (UAE). A branch of Dubai Holding buys land In Istanbul and announces real estate projects totalling USD 5bn (€ 621 mln).

9. Morocco. Al Maabar / Reem (UAE) to launch Reem Morocco, a local subsidiary in charge of its MAD 6.5 billion Atlas Garden project in Marrakesh (€586 mln).

10. Egypt. Solidere (Lebanon) teams up with local SODIC through a 50/50 JV to develop East Town, a 1.6 billion USD property project in Katameya (€585 mln).

11. Egypt. Emaar Properties (UAE) to launch a new project, a 700 million USD mixed‐ use project on the Cairo‐Alexandria Desert Road (€ 512 mln).


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Infrastructures and services of transport‐logistics

The Mediterranean has a natural vocation as a strategic logistics hub, whose infrastructures are eventually starting to benefit from public and private massive investments. The establishment of logistics companies often follows the relocation of their foreign industrial customers. The development of road infrastructures is on the contrary generally out of sight for foreign investors, being the object of large construction contracts, as in Algeria or Libya for example, rather than Public Private Partnerships where the foreign investor would take responsibility for the investments. This last model was chosen by Morocco to develop the Tangier‐Med logistics hub.

Turkey, Morocco, Jordan, Algeria and Egypt attract the majority of the projects, behind which are a majority of Europeans (13 French projects, in Morocco and in Algeria).

Out of fifty FDI projects in transport listed in 2007, port infrastructures and maritime carriage of goods receive 13. In Morocco, the extension of the site of Tangier‐Med continues and Comanav was privatised by being sold to France’s CMA‐CGM. In Algeria, while waiting for the calls to tender for the modernization and expansion of many ports (the port of Bejaia for instance), it is the privatisation of the CNAN which attracted foreigners in 2007. In Egypt, DP World (Dubai) will develop the port of Sokhna; Maersk is in charge of the East Said ‐Port, while CMA‐CGM inaugurates new regional headquarters in Cairo. In Turkey, US investment firm Kohlberg, Kravis & Roberts acquired Ro Ro, the largest maritime transport company of the country, for almost 900 million euros, while a consortium including Hong‐Kong‐based Global‐Hutchison won a BOT contract for the development and management of the port of Izmir.

Air transport infrastructures and air carriage of goods collects a dozen projects, among which the construction or the modernization of the airports of Antalya and Istanbul (Sabiha Gokcen) in Turkey, Queen Alia in Amman, Enfidha and Monastir in Tunisia. As for the rail, it offers in this moment some beautiful opportunities as for instance the BOT contracts offered for the Tel‐Aviv tramway and the Amman‐Zarqa connection. In Algeria, public monopoly SNTF joins CMA‐CGM to develop the rail‐bound transport of containers.

Beyond infrastructures, the whole sector of transport and logistics services is contributing to integrating the region in the world economy. FDI projects


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multiply in: press distribution (France’s NMPP in Morocco), advertising mail distribution (French La Poste in Algeria), express parcel delivery (La Poste and DHL in Turkey, the UAE‐based Aramex in Jordan and in Lebanon), sea, land or air passenger transport (Lebanese private participation in the capital of Royal Jordan, acquisition by Spanish Balearia of the passenger transport branch of Comanav in Morocco), in global supply chain solutions (Gefco, a specialist in automotive logistics, in Tit Mellil in Morocco).

Figure 25. Top 5 of FDI projects in transport in 2007 (total forecast budgets) 1. Israel. MTS. The consortium, including Chinaʹs CCECC, Soares da Costa and

Siemens wins a BOT contract for the construction of Tel Avivʹs light train red line (€1 302 mln).

2. Turkey. Malaysia Airports Holdings (Malaysia). A consortium with Malaysia Airports and Limak to spend 3.447 billion USD to build a new terminal and run for 20 years the Sabiha Gokcen Airport (€ 1 259mln).

3. Turkey. Fraport (Germany) will operate with other partners 3 terminals at Antalya, Turkeyʹs second‐largest airport, thanks to a successful Euro 2.37 billion bid (€1 209 mln).

4. Turkey. KKR (USA). Investment firm Kohlberg, Kravis & Roberts to buy a 97.6% stake worth 882.2 million euros in UN Ro Ro, Turkeyʹs largest shipping firms (€645 mln).

5. Egypt. DP World (UAE). DP World acquired a 90 % stake in Egyptian Container Handling which owns 90% in Sokhna Port for 670 million USD (€490 mln).

Tourism, catering

After the peak measured in 2006, in 2007 the sector seems to be digesting the Pharaonic projects announced in previous years. The Maghreb in general (approximately 30 projects out of 50) and Morocco in particular (18 projects and 800 million euros) remain the preferred destination of tourism direct investors. Jordan attracts 400 million euros of FDI coming from the Gulf, thanks to its resorts on the Dead and the Red Sea, very much appreciated by the tourists of the region. Lebanon wins a project of the Kuwaiti holding Kipco which, through United Real Estate, is to join the Hariri family for a USD 45 million USD hotel in Raouché (Beirut), whose management will be entrusted to Kempinski Hotels & Resorts. This hotel group announces furthermore the opening of 2 other establishments in Lebanon.


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Figure 26. Algeria, Libya and Syria, new destinations (MIPO) Algeria. Star Invest (France). The luxury hospitality group is to invest 75 million

USD over 5 years in creating Lounge Hotels in Algiers, before expanding to Skikda and Mostaganem (€55 mln).

Algeria. Lebanese Modern Construction Company (Saudi Arabia). The Saudi group is to buy Algiersʹs Hotel El Riad.

Libya. Korea Kumho Petrochemical Co. / Daewoo Engineering and Construction (South Korea) is to invest 60% of 163 million USD for the construction of the ʹDaewoo Tripoliʹ hotel (€71 mln).

Libya. InterContinental (UK) will run a new InterContinental Tripoli developed by local group Magna by 2010, as well as the historic Al Waddan hotel.

Syria. Danial Industries (Pakistan) is building for 15 mln USD the Four Points Hotel in Tartous, due to open by 2011, and managed by Starwood.

Syria. Nesco / Nesco Group for Hotel Investments (Saudi Arabia) is renovating a historic building in Damascus to turn it into the Kempinski Hotel Khan Sulaiman Pasha, due to open in 2009 (€3 mln).

Syria. Nesco / Nesco Group for Hotel Investments (Saudi Arabia) is building a third hotel in Damascus, the Kempinski Hotel Damascus, scheduled to open in 2010.

Distribution, retail

The retail industry has not developed evenly in the MEDA region. This situation is reflected in the flows of FDI targeting this sector, the ripest markets attracting the most consequent flows. Turkey receives 17 projects of a total of 37. To a lesser extent, Egypt, Morocco and Israel offer a certain dynamism, while the difficulties encountered by the pioneers in Algeria seem to have made foreign investors more cautious in 2007. Middle‐Eastern supermarket chains (Spinney in Syria) or the Middle‐Eastern franchisees of large Western chains are rather active in Machrek (Saudi or Emirati investors in Egypt, in Syria, but also in Morocco), while the fever which agitates Turkey’s commercial real estate market is primarily caused by investors from Europe and North America. Corio NV, the main commercial real estate promoter in the Netherlands, announced in 2007 seven projects of construction or purchase of shopping centres in Turkey, after a large operation already carried out in 2005 in this country. Its chairman, Jan de Kreij, announced in October 2007 the intention of the group to invest an extra 500 million USD by the end of 2009 in 6 other shopping centres.


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Figure 27. Fever in Turkey: commercial real estate is booming (ANIMA‐MIPO, foreign participation, in million euros) Union Investment (Germany). The German company is investing 130 million

EUR through a JV with Turkish MTM in order to develop the ʹForum Kayseriʹ shopping center by 2009 (130 mln€).

Tesco / Kipa (UK). New shops in Antalya, Çanakkale, Aydın, Lüleburgaz, Konya, İzmir, Uşak, Burhaniye and Çorlu, new distribution center in İzmir (107 mln€).

Citigroup / Citibank (USA). Citigroup Venture Capital International to buy 30% of Boyner Department Stores and 50 % of luxury department store chain Beymen (€106 mln).

Corio (Netherlands) is to acquire the Adacentre shopping centre, as well as 7% interest in the Acibadem project in Istanbul (€65 mln). The group is to sign a forward purchase agreement for the acquisition of a 100%‐interest in Tekira shopping centre in the centre of Tekirdag (west Turkey). It acquired a 40% interest in Teras Park shopping centre in Denizli for 55 million EUR, and is to buy the ADA shopping center in Adapazari for 65 million USD (€48 mln). Finally, Corio is to acquire a 50%‐interest in Esenyurt shopping centre currently under development in Istanbul for 42 million EUR (€42 mln), as well as a 25% stake in GAC Gayrimenkul Yatırımı Real Estate.

Quinn group (Ireland). The Ireland‐based company to acquire a prestige mall located in Bahcesehir for 55 million USD (€40 mln).

Merrill Lynch / Bosphorus Real Estate Fund (USA). Merril Lynchʹs 50‐50 JV with Krea Gayrimenkul Holding to buy Neo Shopping Mall in Eskisehir (Neo AVM Eskişehir) for USD 94 mln (€34 mln).

Merrill Lynch / Bosphorus Real Estate Fund is to develop Neo Avm Pendik, a shopping mall, for 60 mln USD (€22 mln).

Corio is to acquire a 35%‐interest in Edip shopping center currently under development in Istanbulʹs Bagcilar district, for 21 million EUR

VastNed Retail (Netherlands). The Netherlands‐based group enters Turkey by acquiring Elysium Shops, a shopping centre in Istanbul at a price of 9.7 million EUR

Enstar Capital (UK). Enstar Capital to purchase a retail park in Tekirdag for 12.5 million USD, and is also bidding for Metroport, close to Ataturk Airport (9 € mln).

Genertec (China), one of Chinaʹs top trading firms, is to set up a branch in the Aegean Free Zone in Turkey.

Metro / Media Markt (Germany). The consumer electronics chain to open three mega stores by the end of 2007.


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Energy

With 86 projects amounting to 12.6 billion euros in 2007 (twice the 2006 figures in value), the energy sector signals its great return. Even though hydrocarbons prevail, the number of projects in renewable energies is in slight increase in 2007:

manufacture of solar and wind installations in Mafraq, Jordan;

solar project in Hassi Rʹ mel, Algeria;

solar power station with thermodynamic cycle in Libya;

entry of France’s Theolia in the wind energy generation business in Morocco;

construction of 6 wind farms and 5 hydroelectric power stations in Turkey.

Contrary to the concentration observed in 2006 (26 projects for Egypt and 16 for Algeria), foreign investments in 2007 were better shared by a majority of MEDA countries, while Libya emerged as the hottest spot. The 2007 projects (global budgets over several years), amount to a little less than 29 billion euros, including 14 for Libya only!

After decades of embargo, energy majors are warmly welcomed in this country, which counts on them to relaunch exploration programmes, and to increase volumes by modernising production capacities. All Libyan projects relate to exploration programs, except the contract signed between the American Dow and Libya’s NOC concerning the development of a petrochemical complex in Ras Lanuf, and an Italian project of solar power station with thermodynamic cycle intended to feed a desalination plant. In 2007 Libya attracted nearly 4 billion euros in FDI energy projects (annualised inflow).

Egypt attracted 19 projects and almost 2 billion euros of FDI, of which a capacity expansion programme by British BG Group worth a billion dollars. FDI in Algeria’s energy sector doubled in value (1.5 billion euros against 750 million in 2006).

Turkey is becoming an energy hub located on the road of gas and oil from Central Asia. The country is also a significant refining platform and emerges as a new destination for exploration projects. State Oil Company of Azerbaijan (SOCAR) and Turkish Turcas were given the green light for a


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refinery project in Ceyhan worth 10 billion USD, while the Indian Oil Corporation launched another refinery project in Ceyhan (4.9 billion dollars).

British groups were the main investors in energy in 2007 (2.7 billion euros, in Egypt, Libya, Tunisia), followed by the Canadians (1.7 billion euros in Egypt, the Maghreb), and Azeris (SOCAR).

Figure 28. The 12 most important projects in energy in 2007 (ANIMA‐MIPO, forecast budgets) 1. Libya. ENI (Italy) is to pay half of a joint investment programme with Libyaʹs

NOC worth 28 billion USD over 10 years € (10 816 mln). 2. Turkey. SOCAR (Azerbaidjan) and Turkey’s Turcas have set up a JV for a 10

billion USD oil refinery project in Ceyhan (€3 727 mln). 3. Turkey. Indian Oil Corporation (India) has won the approval of Turkey’s energy

regulator for setting up a 4.9‐billion USD refinery in Ceyhan (€1 826 mln). 4. Libya. Petro‐Canada (Canada) is to invest in a joint investment programme with

NOC worth 7 bn USD in exploration projects in the Sirte Basin (€1 696 mln). 5. Algeria. Total (France) to invest 51% of USD 3 billion to build and manage a

petrochemical plant in Arzew; Algerian Sonatrach investing 49% (€1 096 mln). 6. Turkey. General Electric / GE Energy Financial Services (USA) is to buy a 50%

stake in Gama Energy and launch a joint investment programme worth 3 bn USD over 3 years, including Jordanʹs Dizi water project (€877 mln).

7. Egypt. BG Group (UK) is to invest an extra 1 billion USD in 2007 in capacity increase (€731 mln).

8. Libya. BP (UK) pens a 900 USD million energy exploration deal with Libya after having been forced out in 1974 (6€58 mln).

9. Syria. PDVSA (Venezuela) will have a 33% stake in a 2.6 bn USD JV refinery project with Syrian, Iranian and Malaysian partners (6€27 mln).

10. Tunisia. BG Group (UK) is to invest 800 million USD to operate Hasdrubal oil field; Tunisian partner Etap adding 400 million USD (€585 mln).

11. Syria. NIORDC (Iran). National Iranian Oil Refining and Distribution Company is to get 26% of a 2.6 bn USD JV refinery project with Venezuelan, Iranian and Syrian partners (€494 mln).

12. Syria. Al Bukhary Group (Malaysia). The Malaysian group will have a 26% stake in a 2.6 bn USD JV refinery project with Venezuelan, Iranian and Syrian partners (€494 mln).


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Industries of materials

Upstream industries are favoured by foreign investors, in an environment marked by strong international and local demand for building materials and industrial inputs such as alumina, or basic chemicals. Countries counting on cheap and abundant energy supplies (Egypt and Algeria) thus collect large projects in metallurgy or other very energy‐greedy heavy industries. Strong growth prospects for these industries attracted the world leaders, such as the French cement‐manufacturer Lafarge, which bought Orascom Cement for 12.9 billion USD, including 4.1 billion in Lafarge shares.

Glass, cement, minerals, wood, paper

Fourth sector in 2007 by the number of projects attracted (63) as per announced amounts (9,925 million euros), the sector displays a strong attractiveness, in extraction activities as well as in transformation activities. Cement is the main target all around the Mediterranean (at least 36 projects of a total of 63), while projects of mining exploration are concentrated in Morocco, Algeria, Egypt and Turkey.

Algeria attracts 18 projects related to cement, but also to concrete, plaster and glass. At least 6 mining exploration licences were granted to foreigners in 2007, of which 5 relate to gold, mainly allotted to Chinese companies.

Gold also makes its great return in Egypt (project of Cyprus’ Matiz, and presence of Australia’s Centamin, thanks to a new legal framework encouraging foreign investment since January 2007). The country collects this year 17 FDI projects, in cement especially, and, to a lesser extent, in paper (Lebanon’s Indevco in Sadate City with the support of the International Finance Corporation), and glass (Saint‐Gobain in Ain El Sokhna and Indonesia’s Kedaung in Borg El Arab, Alexandria). It is worth mentioning that the Egyptian industrialists of the sector are particularly active abroad: Orascom Cement launched in 2007 five projects in the region (3 to Algeria, 1 to Turkey and 1 in Syria), against 3 for ASEC Cement (2 in Algeria and 1 in Libya).

Europeans are at the origin of 50% of the projects (32 projects) cumulating nearly 80% of the amounts (8 billion euros of FDI).

Metallurgy and recycling of metals

Whereas only 21 projects of FDI had been announced between 2003 and 2006 for the MEDA countries, 29 projects were listed in 2007 alone.


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Turkey is the destination of 7 of them (including 2 by ArcelorMittal, and a South Korean relocation!), while Algeria gets 6, Jordan, Libya and Morocco 4 projects each, Tunisia 2, and Israel and Egypt 1 project each.

Figure 29. Metallurgy: four great projects in Algeria and Turkey in 2007 (ANIMA‐MIPO, budget forecast) Algeria. Mubadala Development + Dubal (UAE). A JV formed by Moubadala

Development and Dubal to own 70% in a 5 billion USD aluminium smelter project, while Sonatrach‐Sonelgaz will hold the rest (€2 558 mln).

Algeria. Al Ezz (Egypt). The Egyptian steel group to invest 1.25 bn USD in the construction of a new steel plant in the Jijel region (€914 mln).

Turkey. Magnitogorsk Iron & Steel Works (Russia). Russian steel producer Magnitogorsk Iron & Steel Works to invest 1.1 bn US over 3 years in a metal works JV with local Atakas (8€04 mln).

Turkey. ArcelorMittal (India). The conglomerate is to team up with local Borusan on a new 500 USD hot rolling‐mill in Gemlik (€183 mln).

The progressive empowerment of emerging economies in heavy industries is striking:

Europe has been at the origin of 45% of the projects since 2003, but in fact the MEDA countries are the most important investors for their neighbours (in value);

Egypt is the first investor in value over the period 2003‐07;

France, which is the first investor in number of projects, arrives only in 5th position in terms of forecast amounts, behind Egypt, the UAE, Russia and India.

Figure 30. Distribution of FDI in metallurgy, by region of origin of the investors (MIPO 2003‐2007, nb. of projects and forecast investments, €mln) Region of origin Projects

2007 Projects 2003‐07

% total Flow 2007

Flow 2003‐07

% total

Europe 7 23 45% 18 413 15% MEDA‐10 9 9 18% 1 040 1 040 37% Asia‐Oceania 5 8 16% 234 250 9% Gulf‐MENA 5 6 12% 691 694 25% Others 2 3 6% 268 397 14% USA/Canada 1 2 4% 5 10 0% Total 29 51 100% 2 256 2 803 100%


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Chemicals, plastics, fertilisers

While all the significant FDI projects in this sector had gone to Egypt in 2006, 2007 projects were more evenly spread. The remarkable constancy of FDI flows over 3 years (about thirty projects and 2 billion euros in FDI per annum) has turned the chemicals business into a speciality of the MEDA region, in a context of lasting high world demand:

In Arzew (Algeria), Sonatrach is developing its fertiliser activity thanks to partnerships with Orascom (Egypt) and Suhail Bahwan Group Holding from Oman.

In Egypt, US company Dow Chemical opened a R&D lab specialised in polyurethane while Dubai‐based capital‐investment company Abraaj Capital acquired Egyptian Fertilisers Company for 1.4 billion USD.

In Jordan, investors from Bahrain, Japan and India are simultaneously involved in phosphate extraction in order to produce fertilisers.

Indian investors (Gujarat State Fertilizers & Chemicals) are also at the origin of a project of phosphoric acid factory in JV in Skhira, Tunisia, while BG develops its production of mineral acids and of sulphuric acid on its Tunisian site of Sfax (Mahrès).

Moroccan projects relate to paints, fertilisers, basic inputs for the cosmetics industry, plastic fibres and glass fibre.

Lastly, Turkey benefits from industrial relocations announced by the German BASF, whereas South Korean Hyosung Corp, a specialist in synthetic fibres, is to invest 130 million USD over 2 years to create a spandex factory in Cerkezkoy, close to Istanbul.

Figure 31. Nine projects above 50 million euros in chemicals, plastics and fertilisers in 2007 (ANIMA‐MIPO, foreign participation in €m) 1. Egypt. Abraaj Capital (UAE). The Dubai‐based investment company takes

control of Egyptian Fertilisers Company for 1.4 billion USD (€1 023 mln). 2. Algeria. Orascom / OCI (Egypt) is to invest 746 mln USD in Sorfert Algeria, a

51/49 JV with Sonatrach, created to operate a new fertilizer plant near Arzew (€552 mln).

3. Egypt. Glencore International (Switzerland) is to set up a JV (26/74) with Egyptian El Sewedy Cables with a view to building a 850 million USD copper smelter (€162 mln).


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4. Tunisia. BG Group (UK). The British gas producer to invest in a sulphur transformation unit on its Sfax (Mahres) facilities (€130 mln).

5. Jordan. IFFCO (India). Indian fertiliser producers team up with Jordan Phosphate Mines Co. to set up a 52/48 350 mln USD JV phosphoric acid plant (€128 mln).

6. Jordan. Mitsubishi (Japan). Jordan Phosphate Mines Company and Japanʹs Mitsubishi Corporation are to build a 300 million USD JV fertiliser complex (€110 mln).

7. Turkey. Hyosung Corp (South Korea). Hyosung Corp is to invest 130 million USD in spandex manufacturing facilities to be located in Cerkezkoy, near Istanbul by 2009 (€95 mln).

8. Algeria. Linde (Germany). After taking a 66% stake in Engi, the German firm is to expand its capacities with three new production units (€80 mln).

9. Tunisia. BG Group / British Tunisia Acide Sulfurique (UK). is to add another sulphuric acid plant to its Sfax premises (€67 mln).

10. Tunisia. Gujarat State Fertilizers & Chemicals + Coromandel Fertilizers (India) are to establish Tunisian Indian Fertilisers S.A. (TIFERT), a JV with local partners, in order to create a phosphoric acid plant by 2009 (€60 mln).

Electric, electronic and medical equipment, electronic components, electronics ware

Large programmess of construction or extension of telecoms networks in the MEDA region were not sufficient to convince the large manufacturers of equipment to root their production closer to these new markets. The sector of electric, electronic and medical equipment collected 34 FDI projects worth 670 million euros in 2007. It is however Israel which is the main beneficiary, while the rest of the region lags far behind.

In spite of a neat reduction in the global FDI volume going to Israel in 2007, the country captured 50% of the projects and 98% of the amounts in the electric, electronic and medical equipment sector, 36% of the projects and 73% of the amounts in the electronic components sector. The Israeli association of venture capitalists confirmed a significant fall in the number of mergers and acquisitions concerning national technological companies, (minus 67% in comparison to 2006).

There is another MEDA country which enjoys a quasi‐monopoly on a certain segment of electronic goods: Turkey has become essential as a manufacturing base for the majority of large international brands of electric household appliances. As regards white goods, which never attracted more


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than 10 projects per annum since 2003, Turkey monopolizes 272 of the 336 million euros invested over the period 2003‐07.

With the exception of air‐conditioning systems, produced or assembled in a majority of the MEDA countries, and manufacturing facilities justified by important trade barriers (for instance, project of Haier in Syria in 2003 for air‐conditioners, refrigerators and washing machines), only Maghreb countries and Egypt convinced a few white goods majors to open factories on their territories:

in Maghreb: South Korea’s Samsung, Hyundai and LG Electronics in Algeria, American Whirlpool and Netherlands‐based Philips in Morocco;

in Egypt: Japanese Sharp, Chinese Haier, Swedish Electrolux and Korean LG.

Pharmaceutical industries and biotechnologies

Foreign investments in biology (pharmaceutical industries and biotechnologies) are reserved for a few MEDA countries only. The bulk of the projects classified as ʺbiotechnologiesʺ since 2003 (10 projects in total) actually relates to seed production for agriculture. And all are located in Israel, except a protein factory in Morocco.

Foreign investments in the pharmaceutical and cosmetics industry represent an increasing number of operations year after year (from 10 projects in 2003 to 18 in 2007). Forecast amounts are sometimes substantial, as was the case this year of the purchase by the Czech Zentiva, affiliated to France’s Sanofi, of 75% of the generic drugs department of Turkish pharmaceutical laboratory Eczacibasi for 400 million euros. Israel, Algeria, Egypt, Turkey and Tunisia are the principal receivers of FDI projects. The French have been the most important investors since 2003, with a total of 21 projects out of 78, but the Anglo‐Saxons (American and British in Egypt and Israel especially, Canadians in Tunisia) invest the most significant sums.

Automotive, aeronautics, mechanics and machinery

Considered in block, these three sectors (Car manufacturers or suppliers, aeronautical, naval or railway rolling stock manufacturers, industries of mechanics and machinery) represented in 2007 only 54 projects (223 over


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2003‐07, 8% of the total) cumulating 1,846 million euros of FDI (7.8 billion over 2003‐07, less than 4% of the total).

Those few projects should however allow the creation of 18,300 jobs this year (mainly in the automotive industry), i.e. 23% of the total direct job creations. Over the period 2003‐07, cumulated direct job creations for these sectors amount to 40,500, i.e. approximately 13% of the total. They are strategic sectors because they often involve effective technology transfers. Even if aeronautics or automotive industries can suffer from very marked cyclical variations, there is a long term trend in favour of growing outsourcing to subcontractors (buyers of Airbus factories in Europe), who tend themselves to develop the share of their production carried out offshore.

Automotive

After the establishment in Tangiers‐Med, in Morocco, of a gigantic Renault‐Nissan factory, and the announced increase in the production capacities of Somaca, a subsidiary of Renault which also produces Logan models for export, Turkey is no longer the only integrated automotive pole of the region. The other MEDA countries remain constrained to import assembled vehicles, or to assemble locally vehicles produced elsewhere (CKD‐ completely‐knocked‐down factories, like those of Chinese Hebei Zhongxing Automobile (ZXAuto) and Chery Automobile in Jordan). Some also specialise on certain components, such as electric wiring systems in Tunisia or Egypt.

Figure 32. New Assembly lines in Algeria, Jordan, Syria and Turkey Algeria. Behm‐Titan‐Kaiser (BTK, France). The French automotive body builder

group to inject 10 million EUR over the next 3 years in BTK Tiaret, a new 60/40 JV with local SNVI.

Algeria. Randon (Brazil). Associated Car and Truck, a subsidiary of Algerian Cevital, to launch an industrial trailers assembly line in partnership with Brazilian Randon.

Algeria. Iran Khodro (Iran). JV with Algerian Famoval to set up an assembly line of pick‐up in 2008, which might be followed by a production unit of spare parts.

Jordan. Chery Automobile (China) is to invest 30 million USD to create a car assembly facility (2€2 mln).

Jordan. Hebei Zhongxing Automobile (ZXAuto, China) is to team up with local Ayass Motors to set up for 30 mln USD in Umm Rasas the first private car assembly and manufacturing (€22 mln).


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Syria. Saipa Corporation (Iran) is to form a 80/20 JV with a local partner in order to create SIVECO, a car assembly plant located in Hessia amounting 50 million USD (€29 mln).

Turkey. Volvo / Renault Trucks (Sweden) is to sign a partnership agreement with local Karsan in order to assemble its trucks in Turkey.

Out of 18 automotive projects in 2007, 9 relate to investors from emerging economies, such as Brazil’s Randon in the industrial trailers in Algeria, the Chinese projects already mentioned in Jordan, Iran Khodro for the assembly of pickup trucks in Algeria and a network of dealers in Turkey, Iranian Saipa in Syria, and South Korean Sewon ECS in wiring systems in Tunisia. Three American equipment suppliers, Clarcor, Delphi and Methode Electronics, relocated part of their production from Western Europe (the United Kingdom, Spain) towards the Southern bank of the Mediterranean.

Figure 33. The automobile equipment suppliers are interested in MEDA (MIPO 2007) Israel. General Motors (USA) is to open a R&D centre in Israel for 10 million

USD, creating 100 new jobs (€9 mln) Malta. Methode Electronics (USA) is to close its Scottish automotive parts

manufacturing plant and transfer all production lines to the existing facility in Malta (€9 mln).

Malta. Total / Hutchinson / Pamargan (France). Pamargan Malta, a subsidiary of Totalʹs Hutchinson, to inaugurate new premises in the Xewkija Industrial Estate, Gozo.

Morocco. Delphi (USA), an auto parts manufacturer to relocate its Spanish production in Tangiers, creating 3000 jobs (€27 mln).

Morocco. Sumitomo / Sews Maroc (Japan) is to create a car wiring system manufacturing unit in Kenitra, its third in the country, for 280 million MAD, creating 1 400 jobs (€25 mln).

Morocco. Leoni / Leoni Wiring Systems (Germany) opens a manufacturing unit in the industrial park of Bir Rami for 246 million MAD, creating 1700 jobs (€ 22 mln).

Morocco. Valeo (France) invests in capacity expansion at its Bouznika plant, while negotiating the sale of its electric cables branch to German Leoni (€ 18 mln).

Morocco. Simonin (France) is investing 20 million MAD to launch a new production unit based in Mohammedia, dedicated to automotive electronic components (€ 2 mln).

Morocco. Clarcor (USA) buys a 80% stake in Moroccan automotive parts manufacturer Sinfa.


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Tunisia. Draxlmaier (Germany), a manufacturer of car wiring systems, is to open a new factory for 60 million TND (€ 35 mln).

Tunisia. Kromberg & Schubert (Germany), a car wiring systems specialist, is to establish a R&D and production facility in Beja industrial zone for 37 million TND (€ 22 mln).

Tunisia. Sewon ECS (South Korea), a car wiring systems manufacturer, to settle on 10000 sqm in Kairouan, creating 500 jobs (€ 9 mln).

Tunisia. Sumitomo (Japan) is to set up a new car wiring system manufacturing unit in Kef region, creating up to 2500 jobs (€ 3 mln).

Turkey. Magna (Canada), a spare parts supplier, is to invest 500 million USD in Turkey (€ 365 mln).

Turkey. ThyssenKrupp (Germany) is to set up a new tailored blanks facility in Bursa.

Aeronautics

With 667 million euros of FDI against 422 in 2006, this sector which also, includes naval and railway rolling equipments, starts to become more visible in the Mediterranean industrial landscape. Aeronautics attracts the majority of the projects since 2003, and all of them in 2007:

In Turkey, Italian group Finmeccanica (Agusta Westland) will assemble attack helicopters A‐129 in partnership with Tusaş Aerospace Industries (TAİ) and Aselsan, a subcontractor.

Morocco’s aeronautics cluster wins 4 more projects this year.

The project of Russian industrial park in Borg Al Arab in Egypt could allow the constitution of a similar cluster, although still embryonic, with the envisaged installation of the Russian airframe manufacturers MiG and St Petersburg Aviation.

Figure 34. Confirmed attractiveness of the Moroccan aeronautics cluster (MIPO) Segula Technologies (France). The engineering company is to buy the Moroccan

SEFCAM, an aeronautics industry subcontractor in Casablanca. Dion (France), specialised in the aerospace industry, is to set up a new plant for

in Tangiers (€3 mln). EADS (France). EADS subsidiary’s Socata is to launch a production unit of

electronic components near Casablanca and will create more than 120 jobs. ARM (France). French aerospace group to invest 33 million MAD in Nouaceur to

set up an assembly unit, creating 100 new jobs (€3 mln).


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Auvergne Aéronautique (France) is to invest MAD 150 million through its local subsidiary Casa Aéronautique in a manufacturing unit in Nouasseur, creating 350 jobs (€14 mln).

Services: Bank, insurance and other financial services

Banking, insurance and other financial services were still the subject of much attention from the part of foreign operators during the year 2007. The projects are multiplying (115 this year after 104 of 2006), and the FDI flows remain very consequent for the second consecutive year (11 billion euros against 12 .7 in 2006). Given the existing contrast between MEDA countries where the private financial sector is well developed, and those where the public sector still dominates, foreign investors are sometimes forced to build a presence from scratch, creating a local subsidiary company and then extending their own branch networks (case of Algeria in particular). In the riper markets (Egypt, Turkey), which still present strong margins of progression (economic and demographic growth, relatively low rates of bank access), several strategies are possible and the acquisitions of local banks are as numerous as the creations of subsidiary companies and new networks.

On the whole of the MEDA region, whereas the creation of new establishments or significant subsidiary companies, alone or in partnership (sometimes imposed) with local operators, was the most common type of FDI project in 2006, acquisitions dominate in 2007, with 45 projects out of 115.

It is interesting to focus on some countries:

In Turkey and in Egypt, foreign investors continue to compete for available M&A opportunities, while waiting for the privatisation of the last public banks (see Figure 35). In 2007, Turkey concentrated 25% of the projects in the sector (29 out of 115), and 66% of the flows (7 238 million euros on a total of 10 958). Egypt is the 2nd destination (18 projects and 2 billion euros).

In Tunisia, French banks continue to strengthen their influence. The French Caisse d’Epargne won for 300 million TND the tender for the 60% stake in the Banque Tuniso‐Koweitienne (BTK) offered for privatisation, while Tunisian bank UBCI, affiliated to French group BNP Paribas, is opening 19 branches and Natixis Pramex International is creating a local subsidiary company.


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Figure 35. Investment projects above 200 million euros in the banking and insurance sector in 2007 (ANIMA‐MIPO) 9

1. Turkey. ING (Netherlands). Turkeyʹs Oyak Bank to be sold to Dutch ING Bank for 2.673 billion USD (€1953 mln).

2. Turkey. National Bank of Greece (Ethniki, Greece). NBG’s total participation in the share capital of Finansbank now amounts to 89.44%. (€1646 mln).

3. Egypt. Dubai Holding / Dubai Financial Group (UAE). The financial arm of Dubai Holding will acquire for 1.1 billion USD the 25% stake in EFG‐Hermes that Abraaj Capital bought in 2006 for 500 mln USD (€804 mln).

4. Turkey. National Commercial Bank (Alahli, Saudi Arabia) bought 60% of Türkiye Finans Katılım Bankasi, a great Islamic financial institution for 1 billion USD (€731 mln).

5. Egypt. National Bank of Kuwait (NBK, Kuwait). After a successful bid for a 51% stake in Al Watany Bank, NBK eventually acquired a total 93.77% stake for extra 2.5 bn EGP (€689 mln).

6. Turkey. Eureko (Netherlands) is to acquire a 80% stake in Garanti Sigorta and a 15% stake in Garanti Emeklilik ve Hayat (465 € mln).

7. Egypt. National Bank of Kuwait (NBK) (Kuwait). National Bank of Kuwait (NBK) has won a competitive tender to buy a 51% stake in Egyptʹs Al Watany Bank for 516 million USD (€377 mln).

8. Egypt. Emirates International Investment / Abu Dhabi Islamic Bank (UAE). The Emirati consortium to acquire 100% of NBD’s capital and to invest 2.7 billion EGP in the 3 next years (€367 mln).

9. Syria. Global Investment House (Kuwait). GIH to launch an Islamic bank in Syria with a capital of 500m USD and is considering others investment projects (€365 mln).

10. Turkey. Mapfre (Spain). The Madrid‐based company buys 80% of Cukurova Holding’s subsidiary General Sigorta (€285 mln).

11. Turkey. Bank TuranAlem (Kazakstan). Almaty‐based TuranAlem acquires a 34% stake in local company Sekerbank for 300 million USD (€219 mln).

In Algeria also (Figure 36), large international banks as well as banks from the neighbouring countries prefer to develop their own structures. Privatisations of the many existing public banks, such the Crédit Populaire Algérien, have been postponed sine die. New markets are

9 In the case of partnerships or JVs, the amounts in million euros correspond to the share belonging to the individual investor.


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open to foreign investors: the government ordered for example in February 2008 the public banking sector to cease the distribution of automobile credit, which gives a strategic edge to foreign banks in the absence of large national private banks.

Figure 36. The progressive opening of the Algerian financial sector continues (MIPO 2007) BNP Paribas (France) is to inject an extra 1 billion DZD into the capital of its

Algerian subsidiary BNP El Djazair (€11 mln). Natixis (ex Natexis) (France) is to open around 7 branches in 2007. Deutsche Bank (Germany). The German‐based group to buy a 51% stake in

Strategica, a financial advisory company, and set up Deutsche Securities Algeria. Société Générale (France). The Algerian subsidiary of the French bank has seen

its local network strongly reinforced with the creation of 23 agencies. BNP Paribas / BNL (France). Banca Nazionale del Lavoro, a unit of the French

giant banker, to share offices in Algiers with local BNP branch. Société Générale / ALD Automotive (France). ALD Automotive, specialised in

long term professional car rentals, to open a local branch. Swicorp + Pulsar Development (Switzerland). Swicorp and US real estate

developer Pulsar Development to create Pulsar MENA, with an initial focus on Algeria.

Commercial International Bank (Egypt). Egyptian will detain a 40% stake of its associate company CIB Algeria (€15 mln).

Fransabank (Lebanon) is to set up Fransabank Syria, a 49% owned subsidiary with a capital of 36 mln USD (€13 mln).

Al Salam (Bahrain), an Islamic bank, is to create a local bank with a capital of 100 million USD (€73 mln).

Export Development Bank of Iran (EDBI, Iran) is to set up a branch in Algiers. ECP ‐ EMP Africa Fund II (USA). US fund manager to acquire Générale

Assurances Méditerranéenne, the first Algerian insurer to be a 100% owned by foreign private capital.

In Syria (Figure 37), creations of banks or insurance companies have multiplied since the opening of the sector in 2006, often initiated by Gulf operators.

Figure 37. Private banks and insurance companies multiply in Syria Fortitude Asset Management + Al Aqeelah (Malaysia). The fund manager to set

up in 2008 with Kuwaitʹs Al‐Aqeelah a JV Takaful company in Damascus. Crédit Agricole / Banque Saudi Fransi (France‐Liban). BEMO Saudi Fransi Bank

to open a new branch in Damas, the 15th in the Syrian capital.


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Aga Khan Devlpt. Network (Switzerland). The Central Bank of Syria is to issue a license for the opening of the first microfinance bank in the country.

Byblos / ADIR (Lebanon). ADIR, a Lebanese insurer owned by Byblos and Natixis (34%), was authorised to set up Adir (Adonis) Syria with initial capital of 1.25 bn SYP (€18mln).

Bank of Jordan (Jordan) is to team up with local businessman Tarif Al‐Akhras to set up a 30 million USD subsidiary called Bank of Jordan‐Syria (49/51 JV, (€11 mln).

Audi Saradar Group / Bank Audi (Lebanon). Bank Audi Syria opens its first branch in the coastal city of Latakia on the Syrian coast.

Arab Sh.M.L (Bahrain), the Bahraini Arab‐International Insurance Company and a group of Syrian expatriates to set up the Arab Insurance Company Syria (€15 mln).

International Financial Advisors (Kuwait) has received the necessary approval from authorities to establish a financial services company.

Global Investment House (GIH, Kuwait) to launch an Islamic bank in Syria with a capital of 500m USD and is considering others investment projects (€365 mln).

National Bank of Kuwait (NBK, Kuwait) will hold a 49% stake of its 106.3 million USD Syrian branch (€57 mln).

Lastly, regional integration progresses in the banking sector. MIPO counts 14 intra‐MEDA investments in 2007, including 8 in Algeria (projects coming from the neighbouring Maghrib countries and from Lebanon), and 4 to Syria (2 from Lebanon and 2 from Jordan).

Figure 38. Regional banking integration process continues (MIPO 2007) Tunisia. BMCE (Morocco). The BMCE creates with Axis, company of financial

council, management of credits and stock exchange intermediation, Axis Capital, new bank of businesses.

Turkey. Bank Hapoalim (Israel). The largest bank of Israel has just acquired 57.55% of the capital of the Pozitif bank for 100 million USD (€73 mln).

Algeria. Commercial International Bank (Egypt) Algeria. Fransabank (Lebanon) Egypt. Audi Saradar Group/ Bank Audi (Lebanon) Egypt. Blom Bank (Lebanon) Syria. Byblos/ADIR (Lebanon) Syria. Bank of Jordan (Jordan) Syria. Audi Saradar Group /Bank Audi (Lebanon). Syria. BEMO (Lebanon)


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Few operations (15 projects in 2007) went to the insurance sector, but they are projects of the greatest interest:

The acquisition of Générale Assurances Méditerranéenne by the American investment fund ECP ‐ EMP Africa Fund II makes it the first Algerian insurer held by foreign capital. This operation could represent one of the first steps to the opening of the Algerian market to foreign insurers.

European companies are setting foot on the modern and dynamic market of Israel, through the acquisitions for instance made by Italian Generali (Migdal) and German Allianz (Euler Hermes).

In Morocco, Zurich Assurance is opening ten new branches and is building new headquarters, while Portuguese Risco Previdencia Investimento has decided to accompany its Portuguese customers active in Morocco’s construction sector. The Saudi Prince Alwaleed bin Talal, through Zephyr, takes 15% of Saham, a Morrocan holding which runs 2 insurance companies, CNIA and Essaâda.

The process of de facto integration of the Turkish economy in the European market is taking place in insurances: the operations recorded in 2007 in this country are exclusively conducted by European investors (Dutch Eureko, Spanish Mapfre, Austria’s Wiener Städtische Versicherung‐TBIH, the British Aviva and Groupama from France).

MIPO has also recorded in 2007 about fifteen operations relating to companies of capital‐investment or the creation of fund management companies specialised in real estate or other sectors. To mention only a few: Kuwait Finances House or the UAE‐based Rasmala in Jordan, the Saudi National Commercial Bank (Alahli) through Oryx, Al Naeem Group, or Dutch Rabobank‐Robeco in Egypt, Pulsar‐MENA in Algeria, Hamilton Lane Advisors in Israel, Deutsche Bank, Caisse dʹEpargne (CDC‐Viveris Management), Société Générale or Bahrain‐based Venture Capital Bank in Morocco, etc.

Economies counting on dynamic and well developed stock exchange markets, (Turkey, Egypt and Israel) see the large investment banks seeking to reduce the number of intermediaries and their commissions by directly acquiring brokers authorized to exercise in these emergent markets in full effervescence.


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Figure 39. Purchases of financial broking companies in 2007 (ANIMA‐MIPO) Egypt. Global Investment House (Kuwait). The private equity investor, after

buying a major stake in brokerage Capital Trust, plans to open more branches. Turkey. Crédit Suisse (Switzerland). Switzerlandʹs second largest bank to buy

Turkish brokerage Baran Securities, and develop its local offer in equity sales, trading and research.

Turkey. Citigroup / Citibank (USA). Citigroup to launch an equities business in Turkey with the acquisition of broker Opus Menkul Degerler.

Turkey. Standard Bank (South Africa) is to acquire a 67% stake in Turkish Dundas Unlu Menkul Degerler, a securities and brokerage house.

Telecom & Internet operators

Three countries this year concentrate 70% of the projects (17 out of 25) and 94% of the announced amounts of FDI: Egypt and Turkey (approximately 1.1 billion euros each) and Israel with 860 million. After two years during which announced FDI flows came very close to 10 billion euros, the sector still manages to attract 3.3 billion in 2007.

Few new licences were allocated in 2007 (except the Egyptian 3G licences to Vodafone Egypt and Mobinil, the JV of France Telecom with Orascom). The heaviest operations related to the extension or the renewal of existing infrastructures, with impressive budgets: a billion USD over 2 years for Vodafone‐Telsim Turkey, 1.3 billion USD over 3 years for Etisalat‐Egypt, 260 million USD invested by Oger in the infrastructures of Avea in Turkey, and significant programmes for Turkcell, affiliated to the Scandinavian TeliaSonera, and for Umniah Telecom in Jordan, dominated by Batelco (Bahrain).

Many investors took advantage of this relative lull to consolidate their shareholdings in the existing operators, in prevision of the increased competition which will result from the predictable entry of new players. Kuwait‐based Noor, a minority partner of France Telecom, increased for instance its participation in the capital of Jordan Telecom. Same thing for Vodafone regarding its Egyptian mobile subsidiary company and Raya Telecom. In Israel, the investment fund Ashmore Group chose ECI Telecom, while AT&T bought Interwise, which offers videoconference services.

France Telecom made a remarked move by opening one of its Orange Labs in Cairo, a center of R&D which will rely on the quality of Egypt’s human resources.


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Data processing & software, Engineering & services to businesses

The generalisation of the recourse to external service providers for a growing number of functions which were formerly carried out in‐house contributes to make of these two sectors significant vectors of growth for certain MEDA countries. In 2007, foreign investors announced 47 projects in software services and 49 in other “services to businesses”, a broad category which covers call centres as well as the legal advice and the recruitment cabinets. The reason why the invested amounts might not appear very significant (a few hundred million euros in total each year), is that these activities, very rich in employment, are not very capital intensive.

As regards data processing and software services, Israel shows a distinct profile among the MEDA countries insofar as the country rather attracts projects of acquisition of software producers whereas Egypt, Tunisia and Morocco have specialised in software‐related services. Of the 20 projects collected by Israel in 2007, 15 are acquisitions, of which the most significant was that of Traiana, a supplier of software solutions for the financial sector, by the English broker ICAP for 238 million USD. R&D is the main strength of Israel, which justified in 2007 the establishment of laboratories and development centres by Ebay, Google, Microsoft and Oracle for example.

Figure 40. Multiplication of FDI projects in software and data processing in Tunisia Microsoft (USA). The Microsoft Innovation Centre is to set up in the El Ghazela

Technopolis. Dalcom International (Canada), specialising in e‐business management, is to set

up in Tunisia. Open Wide (France), specialising in open source solutions, is to set up a local

subsidiary, Open Vision, hiring 15 engineers. XRT (France). The French software publisher, leader in financial and treasury

management software, is to strengthen its partnership with Tunisian Datasoft. PhoneControl (France). The French publisher of telemarketing software is to

create a branch in Tunis, before expanding in Morocco and Algeria. Triton (France) is to create a new subsidiary based in Tunis and plans to recruit

some local employees. Satec (Spain). Home‐grown Netcom bought by a Spanish company whose

ambition is to turn Tunisia into an ICT services export platform for the region. Piterion (Germany). The Stuttgart‐based software house to set up a local

subsidiary in Tunis and to recruit local engineers. Codix (France), an IMX software publisher specialised in project management, is

to turn its commercial office into a development centre.


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Datavance (France). The software services company is to set up a 30 technicians‐strong subsidiary to provide support to French corporate customers.

The Maghreb (Morocco and Tunisia, see Figures 40 and 41), succeeded in convincing a growing number of software firms, mostly European, but also North‐American, and more recently Asian, to remain close or to get closer to their European customers by settling in one of the parks especially arranged to accommodate these “offshore” activities, such as Casanearshore in Morocco. Wipro Infotech, a large Indian software firm, chose Egypt to set up a software development center, with the envisaged recruitment of 200 engineers.

Figure 41. FDI in software services and production in Morocco Cyo (France). The French e‐Business specialist creates a Moroccan subsidiary. Corebridge (UK). The British company specialising in the development of

software is to set up a subsidiary in Casablanca. GFI Informatique (France). French IT services company to create a new services

centre in Casablanca specialising in telecom and finance software. Afina (Spain). The Spanish group specialising in networks security solutions is to

set up a local subsidiary in El Jadida. Ubisoft Entertainment (France). The French game developer plans to expand its

Casablanca’s studios and create 150 new jobs by 2010. Steria (France). French IT services Company is to strengthen its position in

Morocco by increasing employee figures up to 200. Sopra Group (France). French IT consultancy is to set up a subsidiary named

Soprantic with a registered capital of 5.3 million MAD. GenApi (France). The French software developer for notaries creates a

distribution branch in Morocco. Bull (France). French software services company to hire 200 new people for its

Moroccan centres. Société Générale / Europe Computer Systems (ECS, France). Creation of Europe

Computer Systems International Maroc (ECSIM), an 85%‐owned subsidiary of ECS, a provider of information systems (1 € mln).

France Telecom / Sofrecom (France). Sofrecom, a France Telecom subsidiary specialised in software engineering, to settle down in Rabat Technopolis creating 100 jobs.

Safran / Sagem Sécurité (France). Global leader in biometric application to set up local subsidiary, Sagem Sécurité Maroc, to co‐develop software with other R&D centres of the group (€5 mln).


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Sage (UK). Leading British supplier of business management software and services to create a subsidiary after buying part of its local partner Editinfoʹs assets.

As for engineering services and other services to businesses, two phenomena contribute to the multiplication of FDI projects: a strong local demand for services of quality, and the production of services at low cost intended for export. On the 47 projects listed in 2007, 17 went to Morocco and 11 to Algeria.

In Algeria, the majority of the projects relate to the establishment of major networks of legal council, audit, certification, or engineering and design cabinets: Regus, Bernard Krief Consulting, Deloitte, Intraesa, Denton Wilde Sapte, Baker & McKenzie, Francis Lefebvre, SGS, etc.

In Morocco or in Tunisia, foreign services providers target the foreign companies which settle in these countries as well as local companies which benefit from this new offer of often superior quality:

communication and public relations (Serenus Conseil);

legal services (Reinhardt Marville Torre);

audit (Exco France or Scacchi & associés);

express mail (La Poste‐Chronopost International);

facility and industrial management (Interface and Auxigene Maintenance);

security services (Brinks);

temporary work agencies, organisation of commercial events, etc.

Significant projects involving the establishment or extension of providers of offshore services were also registered in 2007: France’s Dated Base Factory and Atos Origin, the British Logica CMG, American EDS, etc.

These 2 movements can be observed all around the Mediterranean. Certain size effects give however a competitive edge to the existing offshore services clusters in Tunisia, Morocco and in Egypt. Malta also positioned itself on this business, and is developing, as is Egypt, a mainly English‐speaking offer. Egypt attracted precisely for that reason the French outsourcer Téléperformance, specialist in telemarketing and tele‐services, who decided to create a 600 position call center. In Turkey, Integrated Service Solutions,


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the Danish facility management giant, bought a 100% of CMC, a company managing call centres.

Personal and domestic services, other services

The MIPO observatory counts very few projects in personal and domestic services (health, education, culture, media, etc.). The few important operations monitored in 2007 are all located in Turkey, where 3 significant foreign investments concerned the private health sector.

Figure 42. FDI projects in Turkey’s private health sector in 2007 (ANIMA‐MIPO) Global Environment Fund (USA). The firm buys Dentistanbul, Turkeyʹs first

and only private dental hospital. Abraaj Capital / Almond Holding (UAE). Almond Holding AS, a subsidiary of

Abraaj Capital Ltd, to acquire a 39.4% stake in Acibadem Saglik Hizmetleri and Ticaret for 600 mln USD (€438 mln).

Julius Baer Holding (Switzerland). The asset manager is to buy Şafak, a chain of Turkish hospitals, for 60 mln USD and spend another 200 mln USD over 2 years in expansion (€190 mln).

4. Geography of foreign direct investments in MEDA

The analysis of the growth of FDI inflows in the MEDA region since 2003 shows a limited consolidation in 2007, after the peak recorded in 2006 (€65 billion of FDI received in 2007 against €68 billion in 2006), while the attractiveness of the MEDA region in terms of number of projects shows no sign of abating (834 FDI projects attracted in 2007, an increase of 226% since 2003).

The confirmed attractiveness of Machrek Figure 43. Evolution of the flows of FDI by sub‐regions of destination (ANIMA‐MIPO 2003‐2007, annual flows in million euros) Region of destination 2003 2004 2005 2006 2007 Total

Machrek 1 915 4 690 11 688 27 811 27 498 73 602

The Maghreb 6 028 7 290 7 564 12 013 15 523 48 419

Other MEDA 1 919 871 20 353 28 709 22 046 73 898

Total 9 863 12 851 39 605 68 533 65 067 195 919

The Machreck continued to benefit in 2007 from the enthusiasm of foreign investors for the Mediterranean, while the block “Other MEDA” is in slight decline due to a sharp decrease in the investments announced in Israel this year. The Maghreb continues the steady progression started in 2005.

The Maghreb captured 14% more projects in 2007 while the Machreck region experienced a slowdown (after an uninterrupted growth between 2003 and 2006) that affects primarily the countries involved in sub‐regional conflicts like Lebanon, Palestine and to a lesser extent Syria. The Other MEDA countries saw their share increase by 14.5%, mainly due to Turkey and Israel.


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Figure 44. Distribution of FDI projects by sub‐region of destination (MIPO 2007, in number of projects and amounts received FDI declared)

In number of projects In value (declared amount)

Maghreb24%

Others34%

Machrek42%

Maghreb43%

Others30%

Machrek27%

Egypt and Turkey continue to fill the tank with FDI Unsurprisingly, the two biggest receivers of FDI flows in the region are Egypt and Turkey. With € 22 billion (or 34% of the total flow), Egypt is progressing at a steady pace (+40% compared to 2006) confirming its position as a regional locomotive (Egypt concentrates alone 81% of total FDI for the Machreq). Figure 45. Evolution of FDI flows to MEDA countries (MIPO 2003‐2007, in millions of euros) Country of destination 2003 2004 2005 2006 2007 Egypt 869 1 940 6 978 15 914 22 220 Turkey 674 697 14 032 14 283 17 997 Algeria 2 523 2 860 4 133 2 476 5 317 Libya 0 0 418 359 4 439 Israel 1 221 131 5 899 13 908 3 971 Morocco 3 298 4 207 1 924 5 292 2 911 Tunisia 207 224 1 089 3 885 2 856 Jordan 493 1 513 1 129 3 235 2 754 Syria 158 415 2 938 5 051 2 165 Lebanon 384 743 643 3 322 279 Palestinian Authority 10 80 0 289 81 Malta 1 43 14 367 46 Cyprus 23 0 408 152 32 Total 6 565 12 851 39 605 68 533 65 067


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Turkey, for its part, continues to attract large FDI inflows (€18 billion against 14 in 2006) particularly in banking (29 projects), distribution (17 projects) and real estate (15 projects).

The Israeli share decreased significantly in 2007 with ʺonlyʺ €3.9 billion (against €13.9 billion in 2006). The absence of significant mergers and acquisitions made by US companies in the Israeli technology sector explains this decrease.

After a difficult year in 2006, Algeria multiplied almost by two the flows of FDI received in 2007 (€ 5.3 billion in 2007 against 2.4 in 2006). By attracting €4.4 billion of FDI on its soil, Libya represents 6.8% of total FDI received by MEDA although one can draw no meaningful conclusions from this mere fact, taking account of the progressive rediscovery of the country by foreign investors, especially in the energy sector, after several years of international boycott.

Highly vulnerable to regional instability (particularly in Iraq), Jordan managed to attract €2.7 billion of FDI in 2007 while Syria is experiencing a significant decline (€2 billion this year against €5 billion in 2006) but remains attractive in 3 key sectors: energy (€613 million), banking (€567 million) and real estate (€414 million). In this last sector, it is worth mentioning the project of the Kuwaiti‐based company Aref Investment which is finalising the development of a business district project in Damascus.

In spite of a difficult geopolitical context, Lebanon and the Palestinian territories have also managed to attract foreign investment in 2007:

flows totalling 279 million euros for Lebanon, in particular in real estate, with for example the construction by the UAE‐based International Stow of 2 luxury residential projects in the downtown area of Beirut;

Palestine won 3 FDI projects, including that of Saudi Land Holding, which unveiled a real estate project worth 200 million USD in the centre of Ramallah‐Al Beira.


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Origin of the flows of FDI towards MEDA Companies from 64 countries have invested in the MEDA region in 2007, that is to say 20 more than in 2006. Figure 46. The 26 major FDI‐emitting countries in the MEDA region (million of euros and number of projects, ANIMA‐MIPO) Country of origin Flows Projects Country of origin Flows Projects

1. UAE 13 557 55 14. Italy 1 295 19 2. France 9 510 142 15. Azerbaijan 1 242 1 3. The United Kingdom 5 428 52 16. Germany 1 057 40 4. The United States 4 120 129 17. Portugal 648 4 5. Saudi Arabia 3 839 41 18. Lebanon 646 13 6. Kuwait 3 218 32 19. Russia 573 12 7. Egypt 2 947 15 20. Austria 476 8 8. Netherlands 2 887 19 21. Hong‐Kong 466 1 9. Canada 2 168 15 22. Switzerland 462 22 10. Greece 1 826 10 23. Malaysia 406 6 11. Spain 1 612 43 24. Czech Rep. 402 2 12. India 1 482 14 25. Thailand 356 1 13. Qatar 1 356 5 26. Kazakhstan 219 1

Investment from North America (USA and Canada) recorded a significant decline in 2007 to €6 billion, against 19 billion in 2006 solely for the USA (no large‐scale operation in the sectors of high technology in Israel this year).

European investors back in the race In terms of forecast invested amounts, France confirms its position as a major European issuer of FDI into MEDA, with a few large transactions:

Lafarge – Orascom Cement;

Total and the petrochemical complex of Arzew, in partnership with Sonatrach;

Renault‐Nissan in Tangier ‐Med.

The British investments total €5.4 billion, of which 56% for the energy sector (BG is investing 1 billion USD in Egypt and 950 million USD in natural gas in Tunisia).

The Dutch became the third largest European investors in the Mediterranean thanks in particular to the acquisition of the Turkish Oyak Bank by ING for


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2.673 billion USD as well as to the multiple operations carried out by Corio in the distribution sector in Turkey (8 projects including 7 purchases of shopping malls).

Companies from Greece and Spain have injected a total of over €3.4 billion in MEDA:

for Greece, an investment of Ethniki which increases its stake in Finansbank to 89.44% for €1.64 billion;

Spain continues to launch projects in the sectors of construction and tourism, mainly in the Maghreb (14 projects for € 1.37 billion).

The arrival should be noted, still timid, of investors from Eastern Europe with 2 Czech investments in Morocco and Turkey (totalling €402 million) and two Polish investments, including one in the energy sector in Libya.

Gulf investors set up camp Saudi Arabia, Kuwait and the UAE have issued 128 FDI projects in 2007, worth €20 billion (about one third of total FDI received by the MEDA region).

Among the investors in the Gulf, the Emiratis come out on top in real estate, chemicals, metallurgy, tourism, while the Saudis are showing an important dynamism in the banking sector, notably in Turkey. With €3.2 billion invested in MEDA, Kuwait is increasing its presence, particularly in the financial sector (€1.2 billion invested through the National Bank of Kuwait in Egypt, Syria and Turkey). Finally investment from Iran, Iraq, Qatar and Bahrain amounted to €1.6 billion, mainly in construction and energy.

Asian companies settle quietly FDI flows from Asia increased to slightly more than €3.5 billion in 2007, mainly in energy (€1.4 billion against €550 million in 2006), transport (see Malaysia Airports which is investing €1.2 billion over the next 5 years to manage the Turkish Sabiha Gokcen airport and to create a new terminal) and automobiles (6 FDI projects).

Chinese investments in the MEDA region reach a disappointing level: €168 million, mainly in industry with for example Teda which is investing 100 million USD to set up a special industrial zone in Egypt. The automotive sector is also favoured by the Chinese with the arrival of Chery Automobile


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in Syria (assembly plant) or ZXAuto in Jordan which is joining Ayass Motors to create another automobile assembly plant in Umm Rasas.

In addition to their interests in the energy sector, Japanese companies are beginning to install in the MEDA region some production units destined for European customers. Sumitomo is, for example, creating two cable factories in Morocco (Kenitra for €25 million, creating 1400 jobs) and Tunisia (€2.9 million in the Kef region, employing 2 500 workers over time).

India concentrates its investments in heavy industries:

Energy (€955 million euros including the creation of a refinery in the Turkish port of Ceyhan by Indian Oil Corporation);

Metallurgy (€192 million including 2 projects of ArcelorMittal in Turkey);

Chemistry (3 projects, including 2 in Tunisia for a total amount of €233 million).

Thailand is entering the region through the acquisition by the public company PTTEP of a 25% stake in the East Mediterranean Gas Company (EMG), in charge of a pipeline between Egypt and Israel, for 487 million USD.

Figure 47. When India will wake up… Until now virtually absent from the list of foreign investors in the Mediterranean, Indian companies are beginning to perceive the MEDA region as a formidable market of over 265 million consumers, often more accessible than Europe in terms of quality standards or environmental or social protection. Indian blue‐chip industrialists poised to launch as early as 2008 large industrial and petrochemical projects, particularly in Egypt: Essar Global plans to invest 3.4 billion dollars for the construction of a refinery; Tata Steel is planning a one billion dollar project in the steel sector; Reliance is to invest not less than USD10 billion in the petrochemical sector

(90,000 local jobs provided). Investments from India come to exceed the amount of FDI made by Chinese companies in the region, and the ambitious projects in preparation should make India among the major investors to be courted.


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The intra-MEDA integration process goes on Intra‐MEDA FDI flows have accelerated in 2007 to reach €4 billion (+67% compared to 2006). A sign that regional integration is taking shape; the number of projects has never been so important (55 projects in 2007). The sectors that benefit most from this trend are:

construction materials (glass, cement, minerals, wood, paper) which represent €1.4 billion;

metallurgy (9 projects adding up to €1 billion, with for example Tunisian Bayahi which is building two aluminium factories in Algeria and Libya to answer the growing local demand);

real estate (11 projects, €700 million, of which those of Lebanese Solidere in Egypt);

banking and finance (8 projects including 4 for Syria, €202 millions).

Among the MEDA countries investing the most in the area, Egypt ranks first (2.9 billion euros) with projects that remain concentrated in steel production (Al Ezz, ironworks of 1.25 billion dollars creating 1,700 jobs in Algeria) and cement (presence of Asec Cement and Orascom in Algeria, but also in Syria, Libya and Turkey). Turkey comes in 2nd place with 178 million euros (development of industrial zones in Jordan and Palestine, steel production in Morocco, construction of power generators in Israel), and Jordan in 3rd (112 million euros of which 85 million euros dedicated to the establishment of two industrial zones in Egypt or 11 million euros invested in a shopping mall in Aleppo in Syria). Israel makes a good score going beyond the threshold of 100 million euros (equity participation in a Turkish bank and an Egyptian oil company). At the bottom of the table are Tunisia (49.5 million euros), Morocco (13.5 million) and Algeria (with a project by Sonatrach in Libya).


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Profile of the receiving countries for 2007

Egypt: the Sphinx takes off!

Ranked top reformer for improved business conditions in 2006/07 by the World Bank, Egypt confirms its role as a locomotive of the Machrek by capturing €22 billion of FDI in 2007 (up by 40% compared to 2006). The country is now fully open to international competition and has doubled its exports from 7.5 billion USD in 2004 (date of commencement of the reforms) to 15 billion in 2007. GDP grew sharply for the 3rd consecutive year according to the IMF, exceeding a 7% growth rate in 2007. The prospects for 2008 are excellent with a GDP growth rate reaching 7.3% according to the IMF.

The marked improvement in the business climate produces immediate effects on the attractiveness of the sectors of construction (€8.5 billion of FDI), banking (€2 billion), energy (€1.8 billion), chemicals (€1.2 billion) and telecommunications (€1 billion). On the ground, the Gulf countries dominate with 40 projects (representing €11 billion, slightly less than half the amount of FDI injected in Egypt).

UAE‐based companies Damac, Abraaj Capital and Emaar have alone invested €7 billion in public works and chemicals. The property sector attracted the greater part of FDI, especially in and around the Egyptian capital (MIPO lists just under €5 billion of FDI for projects in Cairo). Europe arrives after the Gulf countries, with ‘only’ €9 billion of FDI, mainly due to the takeover of Orascom Cement by French group Lafarge.

Figure 48. The 6 sectors which attracted more than one billion euros of FDI in Egypt in 2007 (ANIMA MIPO) Sector FDI flows (mln €) % Public works, real estate, transport, utilities 8 597 38,7% Glass, cement, minerals, wood, paper 6 820 30,7% Bank, insurance, other financial services 2 070 9,3% Energy 1 845 8,3% Chemicals, plastics, fertilizers 1 229 5,5% Telecom & internet operators 1 082 4,9%


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Turkey, a new Euro-Mediterranean tiger

Driven by favourable economic winds since the opening of negotiations for EU membership, Turkey, one of the heavyweights of the MEDA region with Egypt, has received a shower of FDI projects since 2003 (+ 24% in 2007) particularly from European countries (74 projects, mainly in banking, distribution‐retail and construction). This massive injection of foreign capital contributes in part to finance the structural reforms initiated since the 2001 crisis (through privatization), and allows the country to display the largest GDP of the region. A strategic channel of passage between Europe and Asia, Turkey has a competitive and cheap job market that attracts many foreign operators.

As in 2006, foreign investors remain interested in the banking sector (2007 FDI flows over €7.2 billion):

Netherlands‐based ING bought 100% of Oyak Bank;

Ethniki increased its participation in Finansbank;

Saudi National Commercial Bank (Al Ahli) took 60% of the capital of TFB‐Türkiye Finans Bank for 1 billion USD.

Through 9 FDI projects, Saudi Arabia’s investors injected more than €2.9 billion in 2007, representing two‐thirds of FDI flows from the Gulf. Second largest Gulf investors in Turkey with €1.3 billion, the United Arab Emirates focus on two areas:

cement: Al Ghurair is investing for instance 200 million USD for the construction of a new cement factory;

real estate: Sama Dubai bought land in Istanbul for €621 million, etc.

Turkey registered good results in the energy sector by attracting projects worth €2.7 billion, of which €1.9 billion came from 2 Asian investors: Azerbaijan’s SOCAR and the Indian Oil Company which are both investing in the port of Ceyhan (construction of refineries).

Turkey, as a country of industrial culture (like Syria), had attracted 13 automotive projects in 2006, but only received 5 in 2007 (including a Canadian project by Magna valued at USD 500 million). However foreign investors continue to invest in:


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building materials (€1.2 bn, over 90% of it concern cement), metallurgy (€470 million); machinery and mechanical equipment (€300 million).

harbour infrastructures with an investment of €465 million by Hong Kong‐based Hutchison Global to modernise the port of Izmir;

Algeria eventually courted by foreign investors

Thanks to the huge revenues generated by hydrocarbons exports, the country has engaged in a proactive policy to modernize its infrastructure and strengthen the competitiveness of its economy. This ambitious message is well received by foreign operators, which in 2007 have invested more than €5.3 billion (against €2.4 billion in 2006).

FDI flow in the sector of metallurgy has risen sharply this year to €1.6 billion (against €1.5 billion for energy). The chemical industry attracts large flows, such as the 746 million USD invested by Egyptian Orascom in Sofert, a joint venture with Sonatrach, established to manage a fertilizer plant.

The construction sector (real estate, transport and utilities) has received €636 million of FDI in 2007 (against €311 million in 2006):

UAE‐based Emaar is investing €2.9 billion in a tourist complex in Colonel Abbes, west of Algiers;

Singaporean Portek is investing 145 million USD in new port logistics hubs;

Saudi Pharaon‐CTI bought 49% of International Bulk Carriers (IBC), a subsidiary of the CNAN, and is investing 50 million USD in the renewal of its fleet.

Public‐private partnerships are multiplying, particularly in utilities and delegated services:

the Spanish consortium Inima‐Aqualia won two tenders in Mostaganem and Cap Djinet for the construction and management under BOT contracts of desalination plants for €67 million;

SNC Lavalin and Acciona took 51% of the desalination plant of Fouka for 180 million USD;

Malaysian Malakoff and Singaporean Hyflux hold together 51% of a desalination plant built in Tlemcen, worth 205 million dollars;


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Singapore‐based Keppel won a tender to build and manage a wastewater treatment plant worth €10.4 million in Ain Beida.

Relatively quiet in 2006, Gulf investors are starting to make their presence more noticeable in Algeria with 12 FDI projects worth €1.5 billion. Emirati companies are focusing on real estate, metallurgy and agrofood, while the Saudis are investing in tourism and agro‐business (for example Savola investing €140 million in a sugar refinery in Oran).

For historical reasons, European operators rank first in the number of investment projects (62 FDI projects out of a total of 111), investing in particular in:

building materials (German Knauf and French Saint‐Gobain in plaster);

the sector of mechanics and machinery (arrival of several French SMEs such as Boccard, Treviso and MLI);

construction (13 projects) and the banking sector (8 projects including BNP Paribas, which is to inject 1 billion dinars in its Algerian subsidiary BNP El‐Djazair.

The year 2007 also marked the return of France to the energy sector with the arrival of Total in Arzew.

Finally, as in 2006, MEDA countries have multiplied their investments in Algeria, totalling more than €2 billion (against 639 million in 2006), mainly from Egypt (metallurgy, cement), Tunisia (metallurgy, textile, drugs) and Lebanon (bank). The steel industry actually concentrates the largest share of FDI flows from MEDA:

Egyptian Al Ezz invested 1.25 billion USD for the construction of a steelworks in the wilaya of Jijel;

Tunisie Profilés Aluminium, a subsidiary of the Tunisian group Bayahi, is building a €31 million aluminium factory close to Algiers;

Orascom built for 18 million USD a new facility for metal components located near Arzew.

New opportunities should be found in the tourism sector which is to become a great national priority for the next 15 years.


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Figure 49. Algeria: developing tourism to get over the hydrocarbon‐based economy ʺInstead of mass tourism, Algeria wants to develop an offer based on three major assets: the Sea, the Sahara and its rich Culture. Algerian authorities have defined a national program which targets 2025 to make it happen, taking into account the economic necessity to diversify an Algerian economy entirely dependent on oil revenues. The Master plan of tourism development (SDAT) was recently debated during the first National Forum for Tourism held in Algiers in mid‐February 2008. ʺ

In 2015, the objective is that tourism accounts for 3% of the GDP against 1.7% today, and attracts 2.5 million visitors.

Found in «L’Algérie à la conquête des touristes françaisʺ, www.afrik.com

Algeria has also decided to privatise more than 100 public companies in 2008, while the privatisation of public sector banks has been suspended.

Figure 50. The privatisation of the Algerian banks on hold… The privatisation of State‐owned ‘Crédit populaire d’Algérie’, which was supposed to be a clear signal of the reform of the Algerian financial system, was suspended in late 2007. A block of 51% of its capital was meant to be sold to a single strategic partner. Six banks, including four French ones (Credit Agricole, BNP Paribas, Natixis‐Banque Populaire and Société Générale), the Spanish Banco Santander and the U.S. Citibank, were in the running. Officially, it is the defection of three successive banks, some of which had been strongly affected by the global mortgage crisis, which led the government to suspend privatisation, with the overall reform of the banking sector marking time.

Source: Le Monde

Israel: good economic records despite the decline in FDI

After the euphoria of 2006 (€13.9 billion of FDI attracted mainly in new technologies), Israel recorded a significant decline in value 2007 with only €3.9 billion, for the same number of projects as in previous year (81 FDI projects captured in 2007, two thirds of which come from the United States).

While in 2006 the 5 largest FDI projects from the US exceeded the symbolic sum of €10 billion, no FDI project of more than € 500 million was detected in 2007. The decreased amounts of FDI are compensated by the healthy economy, which recorded a GDP growth of 5.1% according to the IMF and a continuing reduction of the unemployment rate from 11% in 2004 to 7.5% in 2007. In addition, the stock prices at the Tel Aviv Stock Exchange, which is supposed to reflect the confidence of investors, grew by 30% over the first


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eleven months of the year, demonstrating that the dynamism of the Israeli ʺValleyʺ remains intact.

As in 2006, Israel has demonstrated its strong appeal in several high tech sectors:

20 FDI projects in the field of software & IT services (representing €424 million or 96% of total MEDA FDI in the sector). For example, the British ICAP bought 100% of Traiana for 238 million USD while US‐based Amdocs bought SigValue for 85 million USD;

€655 million of FDI in the sector of electronic, electrical and medical equipment (97% of total MEDA FDI in the sector), including HP’s operation, which bought NUR Macroprinters, a manufacturer of industrial digital printers, for 117.5 million USD;

€857 million of FDI in the telecommunications sector (less than the respective shares of Egypt and Turkey in 2007), with for example AOL which bought the start‐up specialised in online advertising Quigo for 363 million USD.

Jordan relies on Arab investors

Deprived of hydrocarbons, the Hashemite Kingdom nevertheless managed to benefit from the rising price of oil thanks to the many investments from its Arab neighbours. The economic indicators have remained in the green in 2007 with a growth rate of 6% (IMF) and a private sector strongly supported by the flows of FDI (€2.7 billion in 2007, representing an increase of 458 % compared to 2003). Unsurprisingly, the property sector remains the most attractive with 17 FDI projects (representing €800 million) coming mainly from the Gulf (Dubai Construction Company, the Vertex Tower and Residences project in Amman for JOD 90 million for example).

The modernisation of the Jordanian economy remains a national priority as testify many projects intended to modernize the transport infrastructures:

An international consortium led by France‐based Aéroports de Paris won a BOT contract of 500 million USD for the extension of the Queen Alia airport in Amman;

A Sino‐Pakistani‐Jordanian consortium named Infrastructure Development Company won the tender for the Amman‐Zarqa railway for €175 million.


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The arrival of two Chinese carmakers, Chery Automobile and ZXAuto, to set up car assembly plants shows that Jordan is seeking to diversify its economy.

The metallurgy sector has attracted many investors this year such as Emaar, which is investing 20 million USD in an aluminium factory or the Japanese Fujikura who is teaming up with the Jordan New Cable Company and the Saudi MESC Specialized Cables in order to build a cable plant worth 50 million USD.

Among the main important projects of 2007, we can mention:

in the sector of tourism: Emaar is building a leisure and tourism complex on the Dead Sea;

in telecoms, Kuwait‐based Noor Telecom is to acquire an additional 11.6% stake in the capital of Jordan Telecom;

In the energy sector, the formation of a 60/40 joint venture between US‐based AES and Japan‐based Mitsui to set up a 370 MW power plant at a cost of 300 million USD.

Jordan gets good results despite a complicated regional context. The continuing crisis in Iraq led to the arrival of over 700,000 refugees in Jordan, while oil imports cost more and more (Amman is a net importer) and unemployment remains high (30% of total workforce, CIA World Fact Book). FDI flows to Jordan should remain high in 2008 thanks to the growing interest of Arab investors in real estate, and of Asian investors in phosphate‐based productions. The creation of new business parks and free zones (based on the success of the Special Economic Zone of Aqaba and facilitated by the recent ʺNew Development Areas Law 2008ʺ) should also attract new projects.

Syria: calling upon all people of goodwill

With an average growth rate in 2007 of 3.9% (according to the IMF), the Syrian government, which has recently created the country’s first investment promotion agency, maintains its course of reforms by holding a pro‐economic discourse.

A reformist wind is starting to blow on the country, including the gradual opening of the banking sector to private enterprise and the adoption in


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March 2008 of a new Companies Act (stimulating entrepreneurship and foreign investment).

Compared to 2006, FDI flows received in 2007 are modest, amounting only to €2.1 billion (against more than €5 billion in 2006). This decline comes in a difficult regional context, due in particular to the consequences of the war in Iraq (resulting in the arrival of more than 1.3 million refugees on the Syrian soil) and tensions around the nuclear issue between Iran, the strategic ally of Damascus, and the USA.

With €631 million, the energy sector represents the largest share of FDI received by Syria. The continuing depletion of oil wells (which leads to a decline in oil revenues) justifies the encouragement given to foreign operators who provide a portion of the investment required to renovate existing facilities and explore new fields. The most important projects are backed by state‐owned companies from allied countries of Syria:

The Venezuelan public company PDVSA will have a 33% share in a refinery project of 2.6 billion USD with Syrian, Iranian and Malaysian partners;

The Russian oil company Stroytransgaz is investing 217 million USD to develop natural gas fields on Homs in the north of Syria;

China‐based CNPC has invested 50 million USD in the Syrian SPC, to improve the production of an existing field in the North‐East of Syria.

The banking sector received 12 FDI projects in 2007 against 24 in 2006. Kuwait (€522 million) and Lebanon (3 projects) are the main issuers:

ADIR, an insurer held by Lebanese Byblos Bank and the French Natixis, created ADIR Syria with a capital of 1.25 billion Syrian pounds);

Bemo Saudi Fransi, a subsidiary of France‐based Crédit Agricole, has opened a new branch in Damascus which brings to 15 the number of its offices in the Syrian capital.

Real estate captured less important projects than the previous year (€414 million in 2007 against € 2 billion in 2006 if we add tourism).

Among the 38 FDI projects (all sectors) received in 2007, only 6 came from European investors, while the Arab neighbours emitted 14 projects (representing 1.3 billion euros or more than 60% of the total). Arab investors focused mainly on the following sectors:


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real estate (development by the Kuwaiti Aref Investment of a business district project in Damascus for 500 million USD, social housing programme by Al Aqeelah Construction near Damascus for 400 million euros);

banking sector (establishment by Global Investment House of its first Shariah‐compliant bank in Syria for €365 million);

tourism (the Saudi Nesco is opening two new hotels in the country).

Iranians, which are significant economic players in Syria, have invested in 2007 mainly in energy (the public company NIORDC has obtained a 16% share in a 2.6 billion USD refinery project) and the automotive industry (Saipa Corporation is creating for the sum of €29 million a car assembly plant through SIVECO, a joint venture with a local company).

Lebanon: some projects gained in spite of the crisis

While the entire MEDA region benefits since 2005 from the Arab investment boom due to the explosion of oil revenues, Lebanon missed many opportunities due to the ongoing political tensions affecting the country. With an unemployment rate of 20% and 2% of GDP growth in 2007, the country suffers heavily from the reduction of FDI flows which fell to only €279 million in 2007 (10 projects). The remittances from expatriate Lebanese have been able to partially offset the decline in foreign investment (about €3.8 billion injected in 2006, according to the Central Bank of Lebanon, and probably at least as much in 2007).

The bulk of the captured FDI projects concerns tourism and real estate (7 projects representing €187 million). The Gulf countries, which are the most important investors in the country, are still betting on the ability of Lebanon to quickly recover its economic and financial dynamism, as evidenced by several investments in property:

Kuwait‐based Stow International invests 300 million USD in 2 luxury residential projects on the waterfront of Beirut, Marina I and II;

Tameer Real Estate, a subsidiary company of Al Massaleh, developed ‘Star Tower’, a 4 star hotel located in downtown Beirut whose official inauguration was planned in March 2008;


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Kuwaiti Kipco has teamed up with the Hariri family for a hotel project at Raouche worth 45 million USD and whose management will be given to Kempinski.

Despite the difficulties, Lebanon can count on the support of the international community, which was shown at the donor conference held in Paris in January 2007 and has helped raise approximately USD5 billion (1.1 billion is intended to support the Lebanese private companies). Another positive sign came with the announcement made a few months after the Paris conference by US‐based Intel which plans to invest 500,000 dollars in a technology incubator in Lebanon.

Morocco: a determination which produces results

The willingness of the Kingdom to specialise in offshoring and outsourcing industries is beginning to produce results. The Moroccan government, which plans to reduce the unemployment rate to 7% in 2012 against 15% in 2007, wishes to turn the country into a strategic platform for international operators targeting the Greater Maghreb markets.

Despite a GDP growth weighed down by bad agricultural results (2.5% in 2007 against 7.3% in 2006, according to the IMF), the country is more attractive than ever for foreign investors. Morocco, focusing more and more on industry and harmonious tourism development attracted 141 FDI projects in 2007. Unlike 2006, where Gulf investors accounted for the bulk of the amounts invested, Europe takes the lead with 61% of the 2.9 billion euros invested in the Kingdom.

Attracted by the Moroccan offer, many foreign investors moved into special economic zones that grow across the country such as the port of Tangiers Med for the automotive industry, the Nouasseur industrial area for aeronautics, or CasaShore and Rabat Technopolis for business services and ICT. The automotive sector has exploded in 2007 with several projects:

Renault‐Nissan is investing €600 million to build a car factory in Tangiers and at the same time is increasing the production capacity of its Moroccan subsidiary, Somaca, to export the Logan model to European markets;

American Delphi has relocated its Spanish production line to Morocco, creating 3,000 new jobs on its site in Tangiers;


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Japanese Sumitomo creates its 3rd production unit for automotive wiring in Kenitra for 280 million dirhams, creating 1400 jobs;

German Leoni opens a production unit in the industrial zone of Bir Rami for about 246 million dirhams, creating 1700 jobs.

The aeronautics pole of Nouasseur, located close to Casablanca, continues the takeoff started in 2006:

French medium size firm Auvergne Aéronautique has invested 150 million dirhams in a manufacturing unit, creating 350 jobs;

ARM is investing 33 million dirhams for the creation of an assembly unit, creating approximately 100 jobs;

Segula Technologies has acquired SEFCAM, a specialist in aeronautical sub‐contracting based in the region of Casablanca.

Socata, a subsidiary of EADS, has created a components production unit near Casablanca which will employ over 120 people.

France remains the largest issuer of projects in the Kingdom (65 projects). Spanish investors make their presence more and more noticeable by launching mega‐projects in tourism and real estate: Urbagolf is investing 7.3 billion dirhams in a vast tourism project in Souiria Qdima (12,000 jobs announced), while Orizonia Corporación will build and operate a tourist and residential complex in Marrakech covering a total area of 160 ha (400 acres) for a sum of €214 million.

Morocco, which aims to attract 10 million tourists by 2010, has seized on the liberalisation of its airspace since 2004 to attract new visitors. Indeed, the number of airlines serving the country has increased from 22 in 2003 to more than 50 today. Most of these new airlines are low‐cost companies (means of transport highly used by the European clientele).

Figure 51. Tourism remains a sure value for Morocco ‘Morocco yesterday celebrated with great pomp the arrival of the 7 millionth tourist. And the least we can say is that the target set by the “Vision 2010” programme, which is now half‐way, seem to be achievable, and faster than expected (10 million visitors by 2010). This symbolic figure of 7 million tourists has indeed been achieved earlier than planned.


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Within this total, the French come out on top with 2.44 million, followed by the Spanish (1.34 million), Belgians (370,000), British (358,000), Italians (313,000), Dutch (306,000) and Germans (251,000).’

Source: Matin.ma

Tunisia: immaterial investments and great property projects

Tunisia continues to profoundly reform its economy and manages to distinguish itself on the international scene. The World Economic Forum of Davos acknowledged the efforts made to specialize, among others, in the ICT, electronics and software sectors, by ranking the country in the 26th position in terms of world‐class innovation and 30th with regard to higher education performance.

Unlike 2006, projects from the European Union are dominant. Investment projects from the Gulf still represent about one third of the total €2.8 billion received by Tunisia (against 80% of the €3.8 billion euros attracted in 2006). Many mega‐projects funded by the Gulf are still pending, and could materialise soon. As in 2006, Arab investors are continuing to invest mainly in tourism and real estate:

UAE‐based Sama Dubai has laid the foundation stone of ʹCentury City & Mediterranean Gateʹ at Tunis Southern Lake (14 billion USD over 15 years);

Kuwaiti CTKD is investing 131 million TND in a large tourism project in Sousse;

The Saudi billionaire Mohamed Bin Issa Al Jaber has bought three hotels in Tunis, and a golf course in Monastir.

The media and communication sector is starting to attract investment funds like the UAE‐based company Delta Partners which has entered the capital of the media group Karoui & Karoui.

Tunisia is a destination of choice for European companies, especially after the establishment on January 1st, 2008 of a free trade area with the EU for industrial products.

The data processing and software sector has attracted the greatest number of European FDI projects thanks to the presence of a competitive local labour force (8 projects, of which 6 are French, see Figure 96 above). Tourism attracts mainly French investors (FRAM which opened a new tourism unit in


91

the Governorate of Mahdia or Accor which is building 2 new hotels in Tunis and Djerba and renovating another in Tozeur). The same is true for metallurgy (Procidec creating a local subsidiary for €500,000 or Oxymetal extending its existing activities). The banking sector also attracts many French investors (3 projects, including the Caisse dʹEpargne which bought 60% of the Tunisian‐Kuwaiti Bank for 300 million TND).

The cement sector is booming as throughout the entire MEDA region:

Spain‐based GLA, a subsidiary of Egypt’s Orascom is joining Tunisian Karthago and its compatriot Cluis Celda for a cement plant in Gabes;

Spain‐based Prasa is creating a new grey cement plant worth 250 million TND and plans to build a clinker plant for 115 million TND;

Italcementi is building a new cement plant in Dahmani which will employ around 300 people;

Spanish Aricam has invested €200 million in a new cement plant named ‘Compagnie de ciment de Gafsa Aricam’.

The energy sector attracts mainly Anglo‐Saxon companies, such as British BG which alone is investing €954 million in natural gas through two major projects:

a 500 million USD project dedicated to increase the production of the Miskar field located at the south of Tunisia;

800 million USD spent in the exploitation of the Hasdrubal field.

Tunisia and the USA (which accounts for 8 FDI projects, including that of Microsoft which will open a research centre in the El Ghazala technopark) are seeking to strengthen their commercial ties with the conclusion in March 2008 of a free trade agreement. This renewed U.S. interest could also have in impact in terms of tourism flows given that in February 2008 the New York Times hailed Tunisia as the third most beautiful tourist destination in the world, while the U.S. travel guide ‘Trip Advisor’ recommended the island of Djerba as the best destination to visit in 2008…


92

The Libyan phoenix rises from its ashes

Thanks to exceptionally high oil prices, Libya recorded large trade surpluses and a growth rate of 7% in 2007 according to French institute Coface. With 17 FDI projects worth €3.9 billion (over two‐thirds of total FDI received by Libya), the domestic energy sector seems very attractive. The end of the diplomatic and commercial ban has allowed the return of multinational oil firms to the country, attracted by the prospects of a key area where much remains to be done (rehabilitation of the old infrastructure, exploration of new hydrocarbon fields). The interesting fact when looking at FDI in Libyan energy is the great diversity of countries of origin:

6 projects from Europe (including a project of 900 million USD from UK‐based BP, back to Libya after 30 years of absence, and an investment from Poland);

4 FDI projects coming from the USA/Canada (consequence of the withdrawal of Libya from the list of the States supporting terrorism);

4 Russian projects (Gazprom and Tatneft mainly in natural gas operations);

1 project from the Algerian giant Sonatrach which has won gas exploration licences for 4 blocks in the basin of Ghadames through a 50/50 JV with two Indians firms, Oil India and Indian Oil Corporation.

Energy is no longer the only sector of the Libyan economy to attract foreign capital. Just like the whole region, Libya recorded several FDI projects in real estate, such as Boustead Singapore’s project of building new township in Al‐Marj for 197 million USD in partnership with a local construction company, or Kuwait’s National Real Estate which is financing a urban project on the seafront near Tripoli for 75 million USD.

With precious archaeological and natural assets, the country bets on foreign investment to contribute to developing its tourism offer:

South Korean Daewoo Engineering has for instance invested 60% of the 163 million USD needed to build the ʺDaewoo Tripoli” hotel;

British InterContinental will manage the InterContinental Tripoli which will be completed by Magna by 2010, as well as the historic hotel Al Waddan.


93

The other sectors attracting significant projects are metallurgy (with investments from Tunisia) and the banking sector which is in the early process of reform, with for example the entrance of French banker BNP Paribas which bought 19% of Sahara Bank for €145 million.

Malta, Cyprus and the Palestinian Territories

The entry of Malta and Cyprus in the Euro zone came to reward the good economic management that prevails in both countries. Malta has a growth rate which remained around 3.2% in 2007 (IMF) and a public deficit limited to 1.8% of the GDP, while Cyprus recorded GDP growth of 3.8% and a budget deficit limited to 1.4%. In terms of FDI, Malta has attracted 15 projects this year (against 10 in 2006) and Cyprus 10 projects. In both cases, the vast majority of investors are from Europe.

Living in a state of civil war and partially deprived of international aid since the Hamas victory in the legislative elections, Palestine is going through difficult times. The continuation of this situation could break the hopes for peace raised at the Paris Conference of December 2007, which planned to provide 7.4 billion USD in assistance for the construction of a viable Palestinian state.

The unfavourable situation explains the discouragement of most foreign investors. Some Palestinian entrepreneurs are also relocating their production in Jordan or Egypt.

In this context, 3 FDI projects towards Palestine were detected in 2007:

The Saudi Land Holding Co. launched a housing project worth 200 million USD in Ramallah‐Al Beira;

Turkish TOBB will build an industrial zone near Tarqumiya on the northern West Bank;

APIC, which gathers Saudi Arabian and other Gulf investors, opens its second Plaza Shopping Center in Al Khalil near Hebron.

5. Annexes Annex 1. List of projects detected in 2007 (MIPO)

FDI figures indicated in this table correspond to the total budget forecast of the announced project without considering the duration of implementation (whereas in the previous chapters of this report, only the 2007 share of the budget forecasts was taken into account).

Host country

Company /Investor

Country of origin

Project description Sector FDI‐(€m)

Jobs

Palest. Auth.

TOBB Turkey The Turks are to build with local entrepreneurs an industrial zone in the Tarqumiya area, in the northern part of the West Bank

PW, utilities, logistics ‐

‐

Palest. Auth.

Al Rajhi / Land Holding Co.

Saudi Arabia

The Land Holding Co, a subsidiary of Al Rajhi Group, to launch a 200m USD real estate project in the centre of Ramallah and Al Beira

PW, utilities, logistics 146.2

‐

Palest. Auth.

Arab Palestinian Investment Company / APSC

Saudi Arabia

APIC, dominated by Saudi investors and Palestinians from the diaspora, inaugurates its second Plaza Shopping Center, in Al Khalil, near Hebron

Distribution

8.0

‐

Algeria Arla Foods Denmark Arla Foods Ingredients sets up a five employees branch in Algiers for distribution and sales of DANO full‐cream milk powder

Agro‐business ‐

5

Algeria Mahacil United Arab Emirates

The Algeria‐UAE JV to create in Tariet Africaʹs biggest cow milk production complex for 100 million USD

Agro‐business 73.1

250

Algeria Danone / Danone Djurdjura

France The multinational firm to set up 9 collection centres for fresh milk in 6 wilayas including Bejaia, Setif, Constantine, Bordj Bou‐Arreridj, Blida

Agro‐business

‐

‐

Algeria Savola Saudi Arabia

Saudi agrofood giant to set up a 140 million EUR sugar refinery in Oran


‐

Algeria Randon Brazil Associated Car and Truck, a subsidiary of Algerian Cevital, to launch an industrial trailers assembly line in partnership with Brazilian Randon

Automotive

‐

‐

Algeria Behm‐Titan‐Kaiser (BTK)

France The French automotive body builder group to inject 10 million EUR over the next 3 years in BTK Tiaret, a new 60/40 JV with local SNVI

Automotive 10.0

‐

Algeria Nissan Japan Nissan Algeria, a partnership between Nissan and the Hasnaoui Group, to invest 1 billion DZD over 3 years

Automotive ‐

‐


95

Host country

Company /Investor

Country of origin


Jobs

Algeria Iran Khodro Iran Joint venture with Algerian Famoval to set up an assembly line of pick‐up in 2008, which might be followed by a production unit of spare parts

Automotive

‐

‐

Algeria Pigier France The French group to open two centres of professional training in Algiers and Tizi Ouzou

Other ‐

‐

Algeria Kwit‐Fit / Speedy

UK French subsidiary of a Scottish group, Speedy car maintenance specialist to invest EUR 30 million by opening 15 centres through its local subsidiary

Other

30.0

‐

Algeria ALD Automotive

France ALD Automotive, a Société Généraleʹs subsidiary, specialised in long term professional car rentals, to open a local branch

Bank & insurance ‐

‐

Algeria EDBI Iran Export Development Bank of Iran (EDBI) to set up a branch in Algiers

Bank & insurance ‐ ‐

Algeria BNP Paribas / BNL

France Banca Nazionale del Lavoro, a unit of the French giant banker, to share offices in Algiers with local BNP branch


‐

Algeria Fransabank Lebanon Fransabank to set up Fransabank Syria, a 49% owned subsidiary with a capital of 36 mln USD

Bank & insurance 12.9

‐

Algeria BNP Paribas France The French banker to push an extra 1 billion DZD into the capital of its Algerian subsidiary BNP El Djazair


‐

Algeria Al Salam Bahrain The Bahrain‐based Islamic banker to create a bank with a capital of 100 million USD

Bank & insurance 73.1 ‐

Algeria ECP ‐ EMP Africa Fund II

USA US fund manager to acquire Générale Assurances Méditerranéenne, first Algerian insurer to be a 100% owned by foreign private capital


‐

Algeria Deutsche Bank

Germany The German‐based group to buy a 51% stake in Strategica, a financial advisory company, and set up Deutsche Securities Algeria


‐

Algeria Commercial International Bank

Egypt Egyptian Commercial International Bank will detain a 40% stake of its associate company CIB Algeria


‐

Algeria Natixis (ex Natexis)

France Natixis is to open around 7 branches in 2007 Bank & insurance ‐ ‐

Algeria Société Générale

France The Algerian subsidiary of the French bank has seen its local network strongly reinforced with the creation of 23 agencies


‐

Algeria Swicorp + Pulsar Developt.

Switzer‐land

Swicorp and US real estate developer Pulsar Development to create Pulsar MENA, with an initial focus on Algeria


‐


96

Host country

Company /Investor

Country of origin


Jobs

Algeria SNC Lavalin Canada With Acciona, the groups owns a 51% stake in the JV with AEC to build and run a 180 million USD desalination plant in Fouka


‐

Algeria Acciona Spain With SNC Lavalin, the groups owns a 51% stake in the JV with AEC to build and run a 180 million USD desalination plant in Fouka


‐

Algeria Gofast / Aigle Azur

France Gofast‐Aigle Azur to buy a 49% stake in CNAN‐Maghreb Lines, part of state‐owned public shipping group CNAN


‐

Algeria Gofast / Aigle Azur

France Gofast‐Aigle Azur to take a 49% stake in CNAN‐Nord, part of state‐owned public shipping group CNAN


‐

Algeria Sloman Neptun

Germany Algerian AMS and German Sloman Neptun to create a 50/50 JV in the field of the maritime transport


‐

Algeria CMA CGM France The French ship‐owner and the public company SNTF to launch a 55/45 JV to develop rail‐bound transport of containers


‐

Algeria Veolia‐EDF / Dalkia

France The EDF and Veolia joint subsidiary to set up a local branch which plans to invest EUR 60 million over 3 years


300

Algeria BCT Demolition

France The French medium‐size firm to create its Algerian subsidiary called Aldemo in view to win demolition contracts in the country


‐

Algeria FCC + Obrascon Huarte Lain

Spain Spanish consortium Inima‐Aqualia to get a 51% stake in a JV with AEC to build and run a desalination plant in Cap Djinet


‐

Algeria FCC + Obrascon Huarte Lain

Spain Spanish consortium Inima‐Aqualia to get a 51% stake in a JV with AEC to build and run a desalination plant in Mostaganem


‐

Algeria Pharaon‐CTI

Saudi Arabia

The group to acquire a 49% stake in International BULK Carriers (IBC), a CNAN subsidiary, and modernise its boats for USD 50 million


‐

Algeria Portek Singapore Planned expansion of Port of Bejaiaʹs logistics platform for 145 mln USD


106.0 ‐

Algeria Dario Perioli Italy The Italian company to acquire a 49% stake in CNAN Med, a subsidiary of the Algerian state owned company CNAN, specialised in shipping


‐

Algeria Keppel Singapore The group wins a 10.4 million EUR BOT contract to build and operate a wastewater treatment facility in Ain Beida to be completed by 2009


‐

Algeria Malakoff Malaysia Malaysiaʹs Malakoff will have a 41% interest in the 205 million USD BOT desalination plant project located in Tlemcen


‐


97

Host country

Company /Investor

Country of origin


Jobs

Algeria Emaar Properties

United Arab Emirates

The Emiratesʹ developer to invest an ambitious tourism project in Colonel Abbes, west of Algiers, to be developed on an area of 109 hectares

PW, utilities, logistics 2 923.3

2 000

Algeria Atlaswiss Switzer‐land

The Switzerland‐based property developer to create an Algerian subsidiary in view to launch various real estate projects


‐

Algeria Hyflux / Spring Utility Ltd

Singapore Singaporean Hyflux will have a 10% interest in the 205 million USD BOT desalination plant project located in Tlemcen


‐

Algeria La Poste France The Algerian and French Post offices will launch a JV for the distribution of advertising mail


‐

Algeria Henkel Germany Henkel Algerie about to diversify its portfolio of local products, to enlarge it to glues

Chemicals ‐ ‐

Algeria GGSSI Canada Greenhouse Gas Separation Systems to create a regional subsidiary to market its greenhouse gas capture solutions, creating 20 jobs

Chemicals ‐

20

Algeria Air Liquide France The worldʹs second‐largest company in industrial and medical gas to create Air Liquide Algérie, a 100%‐owned subsidiary

Chemicals ‐

‐

Algeria Air Liquide France The worldʹs second‐largest industrial gas supplier to benefit from Sidalʹs total privatisation

Chemicals ‐

‐

Algeria LPR France The French medium‐size firm specialised in plastic recycling to set up a branch in Algeria

Chemicals ‐

‐

Algeria Orascom / OCI

Egypt OCI to invest 746 mln USD in Sorfert Algeria, a 51/49 JV with Sonatrach, created to operate a new fertilizer plant near Arzew

Chemicals 552.5

750

Algeria Linde Germany After taking a 66% stake in Engi, the German firm is to invest 80 million EUR in expanding its capacities with three new production units

Chemicals 80.0

‐

Algeria SBGH Oman Suhail Bahwan Group Holding to team up with Sonatrach for another urea and ammonia factory in Mers El Hadjad, near Arzew

Chemicals ‐

‐

Algeria ASEC Cement

Egypt Citadel Capitalʹs ASEC Algeria to invest 550 million USD in a greenfield cement factory in the central Algerian region of Djelfa

Cement, glass, minerals 402.0

‐

Algeria Swicorp / Altea Packaging

Switzer‐land

Altea Packaging to buy a 50% equity stake in Cogitel, a manufacturer of flexible packagin which also controls SIED

Cement, glass, minerals ‐

‐


Egypt The construction branch of the Egyptian conglomerate to acquire a 60% stake in Samba, Algeriaʹs largest aggregates producer, for 8 mln USD


‐


98

Host country

Company /Investor

Country of origin


Jobs

Algeria Cancor Canada The Canadian miner to invest USD 500,000 in for a 2nd mining exploration license in In Ouzzal


‐

Algeria Cancor Canada The Canadian miner to obtain a gold mining license in Tamanrasset and invest about 3 million USD over 3 years


‐

Algeria Saint‐Gobain

France Italian subsidiary Saint Gobain Vetri to buy two small state‐owned glass‐producers, Sovest in El Ma Labiod and Alver in Oran


‐


Egypt A new cement plant near Oggaz in Mascara wilaya weighing 500 million USD to create 3,000 direct jobs


3 000

Algeria China Geo Engineering

China Chinese firm China Geo Engineering wins tenders for gold exploration licences

Cement, glass, minerals

‐‐

Algeria Knauf Plâtres Fleurus

Germany The German company to re‐invest 40 million EUR in a new plaster factory near Oran


‐

Algeria Socom China The China‐based miner to obtain a gold mining license in Tamanrasset and invest about 3 million USD over 3 years


‐


France French giant to acquire Algerian group Entreprise de Plâtre et Dérivés for 8.89 million USD


‐

Algeria Eter Group Italy The group to purchase the factory of Enterprise of Ceramics and Porcelain of the East (ECVE) in Guelma and invest 4 mln EUR in its development


4.0

‐

Algeria Cecomines China The Chinese miner wins an operating license for zinc in Guelma, Tébessa and Souk Ahras


‐

Algeria CGC Overseas Construction

China The Chinese company wins the rights to conduct gold exploration in different fields


‐

Algeria PT Wijaya Karya

Indonesia The Indonesian group to invest 12 million USD in a first concrete plant with 3 more precast concrete girder plants planned


‐


Egypt OCI to turn Mehsas National Bag Company into a 100% owned subsidiary for 3.8 mln USD and invest 5 mln USD in capacity expansion


‐

Algeria ASEC Cement

Egypt Citadel Capitalʹs ASEC to acquire a 35% stake and management control over Zahana Cement for 32.6 million EUR and to invest 77 million USD in extension


‐


France Building materials maker St‐Gobain bought a 66% stake in an Algerian gypsum company, CM Gypso, and plans to build a new plaster plant


‐


99

Host country

Company /Investor

Country of origin


Jobs

Algeria PPR / CFAO France Automobile dealer Bavaria Motors, a subsidiary of CFAO, inaugurates a new showroom to sell BMW models

Distribution ‐

‐

Algeria Nesk Trading

Saudi Arabia

Saudi franchisee Nesk Trading to open several Spanish female fashion chain Mango outlets throughout the country, starting in Algiers

Distribution ‐

‐

Algeria Jelmoli + Darsi Investment + Valartis Internat’l

Switzer‐land

A Swiss consortium led by Jelmoli to build a new shopping mall in Algiers in 2008, with future plans for Oran, Annaba, Constantine, and even Morocco

Distribution

42.4

1 000

Algeria Abengoa / Abener

Spain Spainʹs Abener, part of the Abengoa group, gets a 66% stake in the 335 million USD Hassi RʹMel project, an innovative solar‐and‐gas power station

Energy

161.5

‐

Algeria ENI Italy Eni and Sonatrach to renew the development and production licence for the fields belonging to Block 403 in the Bir Rebaa area

Energy ‐

‐

Algeria First Calgary Petroleum

Canada 25/75 JV with Sonatrach for Menzel Ledjmet gas field, a 1.3 billion USD project, with the construction of a gas processing plant and a pipeline

Energy

‐

‐

Algeria Al Qurain / Almet

Kuweit Almet consortium, including Al Qurain and other foreigners to invest 51% of the 1 billion USD budget for a methanol complex

Energy 365.4

‐

Algeria Total France French oil multinational to invest 51% of 3 billion USD to build and manage a petrochemical plant in Arzew; Algerian Sonatrach investing 49%

Energy

1 096.2

‐

Algeria StatoilHydro (Statoil)

Norway Sonatrach et StatoilHydro to win exploration licences for offshore blocks 9 and 10

Energy ‐

‐

Algeria Extenzo France The specialist in interior design to acquire local productive capacity production by buying a 10 % stake in Algeriaʹs Izo Froid company


‐

‐

Algeria Huawei China The Chinese technological company to inaugurate a new regional office based in Algiers

Electr. hardware ‐

‐

Algeria Grupo Bergé / Isofotón

Spain The Spanish leader in photovoltaic solar panels to set up a Isofoton Algeria after buying out its previous sub‐contractor, Alsolar


‐

Algeria Nortel Canada The Canadian company to go into partnership with Hasnaoui Group which made him the exclusive seller of Nortel products on the Algerian market


‐


100

Host country

Company /Investor

Country of origin


Jobs

Algeria Wincor Nixdorf

Germany Wincor Nixdorf, a supplier of hardware/software for the banking sector, to create its own subsidiary company in Algeria


‐

Algeria Grupo Bergé / Isofotón

Spain The global leader in photovoltaic solar panel forms a 50/50 JV with local ENIE in which they will invest 48 mln USD over 5 years

Electr. hardware 35.1

‐

Algeria Viveo France French IT consultancy Viveo to create an Algerian subsidiary called Viveo el Djazaïr in view to support the modernisation of the financial sector

Software

‐

‐

Algeria Boccard France French boilermaker Boccard to set up an Algerian subsidiary in view to create a local production unit

Mechanics & machinery ‐

‐

Algeria KSB Germany The Germany based pump and valves manufacturer to establish in Algeria through the creation of a local subsidiary


‐

Algeria Dietswell France The group is to turn Algerian oil drilling company DMM into a 100% owned subsidiary for 21.8 million USD

Mechanics & machinery 15.9

‐

Algeria Trévise ‐ MLI

France The two French medium‐size firms are teaming up to create a new Algerian JV called Metrise and specialised in bolts


‐

Algeria Boujebel / Medis

Tunisia The Tunisia‐based company to get a 50% stake in Algerian Inpha by injecting 1.5 million Euros in capital

Drugs 1.5

‐

Algeria Mérieux Alliance / BioMérieux

France French lab to set up local subsidiary in Algiers, focused on infectious diseases and capacity building of local health professionals

Drugs ‐

‐

Algeria Al Ezz Egypt The Egyptian steel group to invest 1.25 bn USD in the construction of a new steel plant in the Jijel region

Metallurgy 913.5

1 700

Algeria Orascom Egypt The Egyptian group to launch a new metal components factory for 18 million dollars, distant of 45 km of Arzew

Metallurgy 13.2

‐

Algeria Bayahi / TPR

Tunisia The subsidiary of Bayahi to set up a new aluminium plant near Algiers to adapt to the local construction boom

Metallurgy 31.0

‐

Algeria Mubadala Developt + Dubal


A JV formed by Moubadala Development and Dubal to own 70% in a 5 billion USD aluminium smelter project, while Sonatrach‐Sonelgaz will hold the rest

Metallurgy

2 557.9

‐

Algeria Deloitte USA Creation of Deloitte Algeria Consulting & services ‐

3

Algeria Intraesa Spain The Spanish company specialising in structural engineering to establish in Algeria

Consulting & services ‐ ‐

Algeria Denton Wilde Sapte

UK The London‐based law firm teams up with a local Algerian law company



101

Host country

Company /Investor

Country of origin


Jobs

Algeria Korus le Groupe

France Korus le Groupe to open a branch in Algiers Consulting & services

‐‐

Algeria Francis Lefebvre

France The French lawyer firm to create a fully owned subsidiary called « Bureau Francis Lefèbvre Algérie » based in Algiers

Consulting & services ‐

‐

Algeria Baker & McKenzie

USA The American auditing firm to create a branch in Algiers


‐

Algeria KPMG Nether‐lands

The famous auditing firm to enter the Algerian market by creating a subsidiary called KPMG Algeria


60

Algeria Bernard Krief Consulting

France The public affairs consulting firm sets up its Algerian subsidiary


‐

Algeria SCE France French urban engineering group to launch a new Algerian subsidiary and creates 12 new jobs after the signing of 3 contracts in water sanitation


‐

12

Algeria Europcar France The European leader in car rentals teams up with Cevital to set up CeviCar, a new subsidiary to manage Europcarʹs franchise in the country


‐

‐

Algeria SGS Switzer‐land

SGS, a Switzerland‐based leader in certification, acquired 77% of Algerian COTA and plans to add an extra 300 million DZD over the next 4 years

Consulting & services 4.6

50

Algeria Regus UK Regus inaugurates a new business centre in the Algerian capital


Algeria Galaxia Télécom

Canada Partnership between the Canadian company and Algerie Telecom in order to launch the Athir project, a Wi‐max network

Telecom 29.2

100

Algeria Les filatures de Hadjeb el Ayoun

Tunisia The Tunisia‐based enterprise « Les Filatures de Hajeb El Ayoun » to open a new production plant in Algeria with a local partner

Textile

‐

‐

Algeria Star Invest France The luxury hospitality group to invest 75 million USD over 5 years in creating Lounge Hotels in Algiers, before expanding to Skikda and Mostaganem

Tourism, catering 54.8

700

Algeria LMCC Saudi Arabia

Saudi group ‘Lebanese Modern Construction Company’ to buy Algiersʹs Hotel El Riad

Tourism, catering

‐ ‐

Cyprus Banca Transilvania

Romania The Romanian bank to open its first foreign branch in Nicosia

Bank & insurance

‐ ‐

Cyprus Sheridan UK Belfast‐based real estate investment group Sheridan to set up a regional base in Cyprus


Cyprus EFG / Eurobank EFG

Switzer‐land

Eurobank EFG, part of the Swiss financial group EFG, to open its first wholesale banking branch in Cyprus


‐


102

Host country

Company /Investor

Country of origin


Jobs

Cyprus TTT Moneycorp

UK London‐based retail and wholesale currency services TTT Moneycorp Ltd to open a new office in Cyprus


‐

Cyprus MIG Greece Marfin Investment Group (MIG) acquired a 56.7% stake in Achillerion Hospital for 12 million EUR


‐

Cyprus Carrefour / Carrefour‐Marinopoulos

France Carrefourʹs 50/50 Greek JV with Marinopoulos to open 3 hypermarkets, including 2 in Nicosia in 2007, and 4 more shops to come

Distribution ‐

‐

Cyprus Fourlis group / IKEA

Greece Greeceʹs Fourlis group, owner of the IKEA franchise for Greece and Cyprus, to open its first flagship store in Nicosia

Distribution 20.0

‐

Cyprus Lidl Germany The group to launch a recruitment campaign while seeking to acquire properties in order to set up 15 shops

Distribution ‐

‐

Cyprus Boingo Wireless

USA The US company operates Wi‐Fi spots through the Greek Internet company Forthnet and is looking to expand to more locations with other providers

Telecom

‐

‐

Cyprus Blue Ocean Wireless

Ireland The Irish maritime mobile operator to open a new office in Cyprus

Telecom ‐ ‐

Egypt Kuwait Food Company

Kuweit Kuwait Food Company (Americana), to buy the 20% remaining share in its already 80% owned chips and sweets producer Senorita

Agro‐business ‐

‐

Egypt Bel France The French cheese maker to open its second factory in Egypt for a total cost of USD 20 million


‐

Egypt Marfin / Vivartia / Chipita

Greece Greek food firm to acquire through its 100% subsidiary Chipita an additional 5% in its 25% other local subsidiary Edita, for 6.8 million euros

Agro‐business

6.8

‐

Egypt Savola Saudi Arabia

Savola to invest 90 million USD in the Egyptian United Sugar Company, a new JV sugar refinery in Sokhna


‐

Egypt Gaz Group Russia Russian car manufacturer to set up facilities in Borg al Arabʹs ʹʹRussian industrial zoneʹʹ

Automotive ‐ ‐

Egypt Abu Dhabi Investment Authority


The Abu Dhabi Investment Authority has taken an 8% stake in Egyptʹs EFG‐Hermes Holding


‐

Egypt Ahli United Bank

Bahrain Ahli United Bank Bahrain to increase to up to 100% its stake in its local affiliate


Egypt Audi Saradar Group / Bank Audi

Lebanon The Lebanese Bank Audiʹs Egyptian subsidiary to add an extra 100 million USD in its capital with plans to open 10 new branches by the end of 2007


‐


103

Host country

Company /Investor

Country of origin


Jobs

Egypt Blom Bank Lebanon Lebanese Blom Bank to strengthen its activities in Egypt, especially in the brokerage market


‐

Egypt Tamweel United Arab Emirates

UAE‐based Tamweel might team up with local Commercial International Bank to set up an Islamic mortgage company


‐

Egypt Ahli United Bank

Bahrain Bahrain‐based bank to invest 35 mln EGP in former Delta International bank and launch through Egyptian subsidiary a new contact centre


‐

Egypt National Commercial Bank

Saudi Arabia

The Saudi bank, also known as Alahli, to acquire, through its subsidiary Oryx, 30% of financial group HC


‐

Egypt Barclays UK Barclays Egypt, a 100% owned subsidiary of Barclays International Group to expand from 8 to 31 branches and hire 1,000 new staff


1 000

Egypt Dubai Holding / Dubai Financial Group


The financial arm of Dubai Holding will acquire for 1.1 billion USD the 25% stake in EFG‐Hermes that Abraaj Capital bought in 2006 for 500 mln USD

Bank & insurance

803.9

‐

Egypt Global Investment House

Kuweit The private equity investor, after buying a major stake in brokerage Capital Trust, plans to open more branches


‐

Egypt Emirates International Investment / Abu Dhabi Islamic Bank


The Emirati consortium to acquire 100% of NBD’s capital and to invest 2.7 billion EGP in the 3 next years

Bank & insurance

366.5

‐

Egypt Coldwell Banker

USA The US real estate broker plans to open up 20 new branches in Egypt

Bank & insurance

‐ ‐

Egypt Mapfre / Mapfre Asistencia

Spain Mapfre Asistencia, a subsidiary of Grupo Mapfre, opened a representation office in Cairo, Egypt, and plans to settle in Libya and Algeria


‐

Egypt Mashreq bank


Dubaiʹs Mashreqbank to expand in Egypt through the creation of a network of up to 10 branches


‐

Egypt Al Naeem Group

Saudi Arabia

Naeem Investment Banking has bought Nile Investments Securities and renamed it Naeem Brokerage Company


‐

Egypt National Bank of Kuwait

Kuweit After a successful bid for a 51% stake in Al Watany Bank, NBK eventually acquired a total 93.77% stake for extra 2.5 bn EGP


‐

Egypt National Bank of Kuwait

Kuweit National Bank of Kuwait (NBK) has won a competitive tender to buy a 51% stake in Egyptʹs Al Watany Bank for 516 million USD


‐


104

Host country

Company /Investor

Country of origin


Jobs

Egypt Rabobank / Robeco

Nether‐lands

Robeco enters the Egyptian market through a partial take over on Obelisk Portfolio and Investment Fund Management


‐

Egypt Al Waleed Ben Talal

Saudi Arabia

Alwaleed Ben Talal is part of the local and foreign private investors which will bring 75% of the investments in Toshka land reclamation mega project


‐

‐

Egypt Universal Builders Supply + Cushman & Wakefield

USA ARTOC re‐enters its national real estate market with US partners in a 70/30 JV with an issued capital of 570 million EGP


23.2

‐

Egypt Emaar Properties


Emaar acquires full ownership of its Egyptian subsidiary by buying for 808.9 million EGP Artocʹs 60% share in Emaar Misr


‐

Egypt BALtrans China The Chinese charterer is entering the Egyptian market in partnership with local company Rockit Transport Services


‐

Egypt Bin Laden Saudi Arabia

The Saudi company acquires land in Fayoum to develop a new industrial zone


‐

Egypt Polaris Turkey The Turkish company to develop Polaris International Industrial Park in 6th of October city through a JV with locals in which it holds 50%


‐

Egypt Teda China The Chinese company will set up for 100 mln USD a special industrial zone in Suez aimed to attract Chinese investors


‐

Egypt CMA CGM France Cairo will host CMA CGM’s Egypt headquarters which will cost 3 million USD and will employ 90 staff and 330 workers


300

Egypt Solidere Lebanon The Beirut‐based property developer creates Solidere‐Egypt, its fully owned subsidiary located in Cairo


‐

Egypt Agility UK The British global provider of integrated supply chain solutions to acquire Alexandria‐based Leader Group


‐

Egypt Specialized Investment Compounds Co / Al Tajamouat Industrial

Jordan SPIC to set up Tajamouat Investment Company with capital of 100 mln EGP to invest 300 mln USD to set up a qualified industrial zone (QIZ) near Cairo


12.4

‐

Egypt Solidere Lebanon The Lebanese promoter teams up with local SODIC through a 50/50 JV to develop East Town, a 1.6 billion USD property project in Katameya


‐


105

Host country

Company /Investor

Country of origin


Jobs

Egypt Solidere Lebanon The Lebanese promoter teams up with local SODIC through a 50/50 JV to develop West Town, a 2.4 billion USD real estate project in Sheikh Zayed City


‐

Egypt Meshaal bin Abdel Aziz

Saudi Arabia

Saudi Prince Meshaal bin Abdel Aziz bought 410 feddans of land for 1.7 billion EGP


230.8‐

Egypt Damac United Arab Emirates

The UAE‐based promoter to invest EGP 30 billion in a project in New Cairo, the first phase being called Hyde Park


‐



The Emiratesʹ real estate developer to launch a new project, the 1 billion USD New Cairo City residential community


‐



The Emiratesʹ real estate developer to launch a new project, a 700 million USD mix use project on the Cairo‐Alexandria Desert Road


‐

Egypt Damac United Arab Emirates

UAE‐based developer paid 4.74 billion EGP for 1,500 feddans of land for future real estate projects in Egypt


‐

Egypt Marina d´Or Spain The Spanish promoter to buy lands in Egypt with a view to realise various real estate operations


‐

Egypt Barwa Real Estate

Qatar The Qatari developer purchased 1,980 feddans of land for 6.11 billion EGP


‐

Egypt Company for Egyptian Centers

Saudi Arabia

Saudi Arabian developer Company for Egyptian Centres bought 210 feddans for 1.15 billion EGP


‐

Egypt DP World United Arab Emirates

DP World acquired a 90 % stake in Egyptian Container Handling which owns 90% in Sokhna Port for 670 million USD


‐

Egypt Qatar Investment Authority

Qatar Qatari Diar to win land auction in Borg el Arab and sign a MoU to develop for 16 bn EGP an industrial zone


‐

Egypt Maersk / APM Terminals

Denmark Suez Canal Container Terminal (SCCT), in which Maersk holds 60%, to implement East Port‐Said Portʹs second stage for 2.8 bn EGP


1 200

Egypt Unknown China An Egyptian/Chinese company owns a 27.7% stake in the newly established ʹMain Development Company for the Northwest Gulf of Suezʹ


0.0

‐

Egypt Dow USA US Dow Chemical Company to open a polyurethane systems market development and prototyping laboratory in Egypt

Chemicals ‐

‐

Egypt Abraaj Capital


The Dubaï‐based investment company takes control of Egyptian Fertilisers Company for 1.4 billion USD

Chemicals 1 023.1

‐


106

Host country

Company /Investor

Country of origin


Jobs

Egypt DEG Germany German development agency to take a significant stake in Oriental Weavers Groupʹs project of 680 USD million petrochemical complex in Port Said

Chemicals

44.7

‐

Egypt Xinao China Chinaʹs Xinao will be, with Vancouver‐based Methanex, minority shareholder in a JV dominated by ECHEM, formed to set up a new DME plant

Chemicals

‐

‐

Egypt Cemex Cement

Mexico Assiout Cement, owned by Mexico’s Cemex, gained a permit for 202 million EGP in order to expand its local unit based in Upper Egypt


‐

Egypt Lafarge + Titan

Others Beni Souif Cement, a JV between French Lafarge and Greek Titan (50/50), was granted a license for 134.5 million EGP to expand its facility


18.3

‐

Egypt Cementos La Union / Arabian Cement

Spain The Egyptian affiliate of the Spanish group to invest 289 mln EGP in a new cement plant


150

Egypt Egypt Kuwait Holding (EK)

Kuweit Egyptian‐koweiti JV EK Holding to take a 10% stake in South Valley Cementʹs 600 million EGP project in Assiut governorate


‐

Egypt IFC USA IFC to invest 26.4 million USD in support of a new tissue paper mill, which will use wastepaper as its primary source of raw material


170

Egypt Vicat / Sinaï Cement

France The controlling shareholder of Sinai Cement since 2003 to continue construction work on new kilns


‐

Egypt Financial Holding Internat’l

UK Cement company Al Arabiya Al Wataniya owned by UK‐based Financial Holding International will run a factory based in Menya for 200 million EGP


‐

Egypt Lafarge France The Paris‐based cement company buys Orascom Cement for 12.9 billion USD, including a significant stake in Lafarge worth 4.1 bn USD


6 431.2

‐

Egypt Horus Cement

UK Cement company Wady El Nile, a subsidiary owned by UK‐based Horus Cement won a license for a project located in Beni Souif for 251 million EGP


25.6

‐

Egypt Kedaung Indonesia Indonesian glassware giant to take part in the creation of Pyramid Glass, a new born glass factory in Borg El Arab, Alexandria


‐


107

Host country

Company /Investor

Country of origin


Jobs

Egypt Saint‐Gobain

France The groupʹs Flat Glass Sector to construct a 120 million EUR float glass production line in Ain El Sokhna, through a local JV with MMID


‐

Egypt Indevco Lebanon Lebanon’s Indevco Group to set up a new 76.8 million USD tissue paper mill to recycle wastepaper in Sadate City, creating 170 jobs


170

Egypt Gippsland Australia The Australian mining group starts copper‐nickel exploration at Abu Swayel


‐‐

Egypt Omya Switzer‐land

Omaya Egypt Mining, a JV in which the Swiss group has 33.22% to set up a 87mln USD calcium carbonate plant in 10th of Ramadan City


‐

Egypt Saint‐Gobain / BPB Placogips

France Saint‐Gobain to create Egyptʹs first plasterboard plant through BPB Placogips, a local JV between Orascom Construction Industries and UKʹs BPB


‐

Egypt Newport Media

USA The semiconductor company specialised in supplying products to the mobile broadcast media market to open a design centre in Cairo

Electronic components ‐

‐

Egypt Majid Al Futtaim (MAF)


The UAE‐based group plans to invest 12.5 billion EGP over the next 5 years for 12 new outlets for retail and commodity distribution

Distribution 1 696.8

‐

Egypt Majid Al Futtaim (MAF)


The commercial real estate developer to purchase land in 6th of October City to set up a shopping mall, with 5 more Egyptian projects to come

Distribution

‐

‐

Egypt i2 United Arab Emirates

i2, the UAE based regional largest mobile provider, to open 40 new outlet in Omar Effendi supermarkets by the end of 2007

Distribution ‐

‐

Egypt Anwal Saudi Arabia

Omar Effendi’s new Saudi owners, namely Anwal Group, got a 40 million USD loan from the IFC to undertake a thorough facelift

Distribution 29.2

‐

Egypt Electrolux Sweden Electrolux to team up with Egyptʹs Olympic Group to manufacture and distribute Electrolux, Zanussi and AEG home appliancesʹ brands

Electronic ware ‐

‐

Egypt LG Electronics

South Korea

The Seoul‐based group to increase its participation in its local subsidiary LG Egypt up from 51% to 94%

Electronic ware ‐

‐

Egypt BP / Gupco UK BP to invest 600 million USD over the 5 next years in view to rehabilitate and run the Sakkara‘s oil fields

Energy 438.5

‐

Egypt PGNiG Poland Polish State‐owned PGNiG to start oil exploration in the Bahariya oilfield in Egypt’s Western Desert

Energy ‐

‐

Egypt ONGC Videsh

India Indiaʹs ONGC Videsh to buy a 33% stake in an undersea acreage in Egypt for 380 million USD

Energy 277.7

‐


108

Host country

Company /Investor

Country of origin


Jobs

Egypt Naftogaz Ukrainy

Ukrain Naftogaz Ukrainy will spend 30 million USD in view to explore the Alam Al‐Shawish oil field

Energy 21.9

‐

Egypt Tanjongs Malaysia The Kuala‐Lumpur based company Tanjongs to buy various Egyptian power plants including Sidi Krir plant

Energy ‐

‐

Egypt Hellenic Petroleum SA + Melrose Resources + Oil Search

Greece Greek oil company has a 30% stake in a recently signed 4‐years oil concession in the region of Mesaha

Energy

3.1

‐

Egypt Hellenic Petroleum SA

Greece Greek oil company to sign for oil concession in Egyptʹs desert with investment worth 26 mln USD over 7 years

Energy 19.0

‐

Egypt Vegas Oil and Gas

Greece Greek petroleum company Vegas Oil and Gas to spend USD 13 million over 7 years in oil exploration activities

Energy 9.5

‐

Egypt BG Group UK BG Group to invest an extra 1 billion USD in 2007 in capacity increase

Energy 730.8

‐

Egypt Methanex Canada Methanex in MoU with Egyptʹs Echem and Chinaʹs XinAo Group for the development of a dimethyl ether plant near its methanol plant in Damietta

Energy

‐

‐

Egypt Petrogas E&P

Oman The Oman‐based privately‐owned oil company to buy a 30% interest in Oil Searchʹs Area A concession in Egyptʹs Eastern Desert

Energy ‐

‐

Egypt Dana Petroleum

UK UK‐based energy company to buy Devon Energyʹs Egyptian subsidiary and its portfolio in a 375 million USD deal

Energy 274.1

‐

Egypt TransGlobe Energy

Canada TransGlobe Petroleum International to acquire Dublin International Petroleum and Tanganyika Oilʹs Egyptian assets for 59 mln USD

Energy

43.1

‐

Egypt GDF France The company to acquire a 45% stake in the Alam El Shawish West licence from Vegas Oil & Gas

Energy 0.0

‐

Egypt RWE Germany German energy company to get oil prospection license in onshore concession in Tanta, Nile Delta and spend 18.9 mln USD over 3 years

Energy

13.8

‐

Egypt OAO Novatek

Russia The Russian group to acquire a 50% working interest in El‐Arish offshore block concession in Egypt from Tharwa Petroleum S.A.E.

Energy 0.0

‐


109

Host country

Company /Investor

Country of origin


Jobs

Egypt PTTEP Thailand Thailandʹs state‐owned energy group to buy 25% of East Mediterranean Gas Company (EMG), an Egyptian gas pipeline company, for 487 mln USD

Energy

355.9

‐

Egypt Cepsa Spain Cepsa wins the right to carry out oil and gas exploration in South Alamein area, for a total cost of 20 million USD over the next three year

Energy 14.6

‐

Egypt Ampal‐American Israel

Israel Ampal‐American Israel Corp to venture with Israeli institutional investors in view to buy shares in local East Mediterranean Gas for 40 million USD

Energy

29.2

‐

Egypt Unknown China Several Chinese companies will set up with the government, a USD 50 million joint venture to develop and manufacture mobile phones

Electr. hardware

‐

‐

Egypt Digicom Italy The telecom equipment producer to go into partner with local Stars Group for the construction of a 10 miIIion EUR factory


100

Egypt Wipro Infotech

India The Indian technological company to establish a development centre in Egypt, planning to hire 200 local engineers

Software ‐

200

Egypt AGCO / Massey Ferguson

USA US‐based Massey Ferguson to team up with Egyptian Atam through a JV in view to produce and export agricultural equipment


‐

Egypt MiG Russia MiG first wave of companies setting up facilities in Borg al Arabʹs so‐called ʹʹRussian industrial zoneʹʹ

Transport equipment ‐

‐

Egypt St Petersburg Aviation

Russia St Petersburg Aviation in the first wave of companies setting up facilities in Borg al Arabʹs so‐called ʹʹRussian industrial zoneʹʹ


‐

Egypt AstraZeneca UK The UK drug company to open a manufacturing plant in Cairo for a total cost of 32 million USD

Drugs 23.4

350

Egypt Glencore International

Switzer‐land

Glencore International to joint‐venture (26/74) with Egyptian El Sewedy Cables in view to build a 850 million USD copper smelter

Metallurgy 161.5

‐

Egypt Construction Products Holding Company

Saudi Arabia

The Jeddah‐based company to create the most important cable company in the Middle East called Bahra Cables at a cost of 53 million USD

Metallurgy

38.7

‐

Egypt Matiz Holding Company

Cyprus Cyprusʹ Matiz to form with the government Hemsh Misr, a JV set up to deal with refining Egyptian gold on industrial scale

Metallurgy ‐

‐

Egypt Soyuzmedprom

Russia The Russian company to establish in the Borg al Arabʹs so‐called ʹʹRussian industrial zoneʹʹ

Metallurgy ‐

‐


110

Host country

Company /Investor

Country of origin


Jobs

Egypt Key Facilities Management

UK UK‐based Key Facilities Management teams up with local group Dar Al Mimar to create a JV named Key MENA


‐

Egypt Teleperformance

France The French leader in customer relationship outsourcing to set up a 600 position‐ call centre in order to strengthen its services to English speakers


‐

600

Egypt Mellon Group

Greece Mellon Group of Companies, a major international outsourcing and transaction solutions provider, to extend its operational centre in Cairo


100

Egypt Tejari United Arab Emirates

Tejari Egypt introduces the benefits of e‐procurement and e‐commerce services to the country’s government departments and private enterprises


‐

‐

Egypt Etisalat United Arab Emirates

The 66% owned Egyptian subsidiary of UAE’s Etisalat to spend 1.4 billion USD over 3 years in developing its telecom infrastructure

Telecom 675.3

‐

Egypt France Telecom / Mobilnil

France France Telecomʹs JV with Orascom buys a 3G license for 3.340 billion EGP plus 2.4% of revenues from its 3G services over next 15 years

Telecom

453.4

‐

Egypt Vodafone UK The group to increase its stake in Egyptʹs Raya telecom subsidiary for 93.6 million EGP, up from 51 to 96.9%

Telecom 12.7

‐

Egypt Vodafone UK The group to increase its stake in Vodafone Egypt from 50.1% to 54.9%

Telecom 146.2

‐

Egypt Vodafone UK Vodafone Egypt, a 55% owned subsidiary of British Vodafone, buys Egyptʹs second 3G licence for 586 million USD

Telecom 235.5

‐

Egypt Inmarsat UK The British operator to get a satellite licence in Egypt and improve the competitiveness of its satellite offer

Telecom ‐

‐

Egypt France Telecom

France The French multinational to set up a research and development centre similar to its 15 others Orange Labs worldwide

Telecom 8.9

400

Egypt Al Islami United Arab Emirates

Al Islami to launch a fast‐food franchise in Egypt by investing with a local partner in 1,000 catering carts


‐

Egypt Olayan / Hana

Saudi Arabia

Hana International, the exclusive regional Burger King franchisee, to open its first restaurants in Egypt, through a JV with Kuwaitʹs Al‐Shaya group

Tourism, catering

‐

‐

Egypt Carlson / Radisson Hotels & Resorts

Sweden The Swedish company modernised and expanded its ʹGolden Resort by Rezidorʹ in Sharm El Sheikh and turned it into a ʹPark Innʹ hotel

Tourism, catering

‐

‐


111

Host country

Company /Investor

Country of origin


Jobs

Egypt Carlson / Radisson

USA Rezidor Hotel Group to launch The Radisson Hotel, Alexandria in 2009

Tourism, catering

‐‐

Egypt Nesco Saudi Arabia

The Saudi group owns Kempinski Hotel Sharm el Sheikh, set to open in 2011, located in the Hadabet Madrset El‐bya area of the city

Tourism, catering ‐

‐

Egypt Kipco + URC

Kuweit A pool of Kuwaiti investors takes over the Sheraton Heliopolis, builds a new hotel and will run both of them under the Fairmont franchise

Tourism, catering

‐

‐

Israel Apax Partners

UK Private equity firm Apax Partners buys a 56% stake in Israeli food company Tnuva, worth approximately 550 mln USD


‐

Israel Nestlé Switzer‐land

Osem Investments, controlled by Nestle has acquired 51% of infant formula maker Materna from Maabarot Products for 249 million NIS

Agro‐business

22.9

‐

Israel Nihad Alhad Hummus

Jordan Jordanʹs Nihad Alhad Hummus to team up with Israeli Strauss Groupʹs Sabra Salads to market hummus salads in Israel

Agro‐business 5.5

‐

Israel General Motors

USA The American car company to open a R&D centre in Israel for 10 million USD, creating 100 new jobs

Automotive 8.8

100

Israel Bankinter Spain Israeli Amdocs and Spanish Bankinter to launch a joint initiative, offering new online banking solutions


‐

Israel Crédit Suisse

Switzer‐land

Switzerlandʹs second largest bank to open a representative branch in Tel Aviv


Israel Allianz / Euler Hermes

Germany A subsidiary of the Allianz group, Euler Hermes acquired a third of Israelʹs ICIC credit insurance provider, for around 40 million NIS


‐

Israel Generali / Migdal

Italy Italian insurance group to pay through its subsidiary Migdal 50 million USD for a 20% stake of Delek Real Estate‐Yielding Properties


‐

Israel ABN Amro Nether‐lands

The Nether‐lands‐based banker to open its first branch in Israel


Israel Battery Ventures

USA The venture capital fund based in the Silicon Valley is investing several million dollars in Technion Incubator


‐

Israel Disney / Shamrock Holdings

USA The Disney familyʹs investment arm is launching an 250 million USD investment fund which will target the Israeli industrial sector


‐

Israel Hamilton Lane Advisors

USA The US‐based investment manager and strategist for private equity institutions, to open branch in view to manage a 100 million USD portfolio


‐


112

Host country

Company /Investor

Country of origin


Jobs

Israel McGraw‐Hill / Standard & Poorʹs

USA World leading ratings company to buy Maalot, a 35‐analysts strong securities rating agency for an undisclosed sum


‐

Israel Syngenta Switzer‐land

The Swiss based group to acquire Zeraim Gedera, specialised in seeds for field crops, for USD 95 million

Biotechnologies 69.4

‐

Israel Northern Group

USA Northern Group buys half of Acadʹs 90 percent stake in Dori Engineering, a builder and developer headquartered in Tel Aviv, for 31 million USD


‐

Israel MTS Non available

The consortium, including Chinaʹs CCECC, Soares da Costa and Siemens wins a BOT contract for the construction of the Tel Avivʹs light train red line


1 302.5

‐

Israel Veolia France The French group buys for 93 mln NIS Elran Investmentsʹ stake in VID and Adom, 2 companies running Ashkelon desalination plant


‐

Israel Deutsche Post / DHL

Germany The logistics arm of the German Post buys Flying Cargo for 100 million USD


‐

Israel Bill Davidson

USA The American businessman Bill Davidson takes a 17% stake in the water management company Arad Ltd for 120 million USD


‐

Israel Intel USA Intelʹs investment arm to invest in Jordan Valley Semiconductors, a specialist in semiconductor metrology based on X‐ray technology


8.0

‐

Israel Samsung South Korea

The South‐Korea based giant to acquire TransChip for an estimate amount of 70 million USD, and turn it into its local R&D centre


51.2

‐

Israel Broadcom USA The US‐based semiconductors producer to buy Octalica, an Israeli start‐up, for 40 million USD

Electronic components 29.2

‐

Israel Spansion USA California‐based flash memory specialist to acquire Saifun Semiconductors in a deal worth 368 million USD


‐

Israel Bronfman‐Fisher Investments

USA Bronfman‐Fisherʹs subsidiary Isralom Properties to buy a 66% stake in the IKEA Israel store in Netanya for 116.7 million NIS

Distribution 21.4

‐

Israel Bronfman‐Fisher Investments / Isralom Properties

USA Isralom Properties, a Bronfman Fisher subsidiary, to buy a 19,7% stake in Olimpia Real Estate Holdings for 133 mln NIS

Distribution

24.4

‐


113

Host country

Company /Investor

Country of origin


Jobs

Israel Bronfman‐Fisher Investments

USA The Bronfman‐Fischer group to buy a 19.8% stake in Israelʹs biggest supermarket chain, Super‐Sol, for 214 million USD

Distribution 156.4

‐

Israel Haier China The Chinese manufacturer of household appliances to invest 40 million USD in a new R&D facility

Electronic ware 29.2

‐

Israel Zion Oil & Gas

USA The Texas‐based oil company gets an exploration permit covering several thousand hectares in the area of Netanya

Energy ‐

‐

Israel Zorlu / Zorlu Enerji

Turkey Turkish conglomerate Zorlu to invest 51 million EUR in building many power stations in Israel until 2010

Energy 51.0

‐

Israel Shire International

USA The American group to invest 50 million USD in Givot Olamʹs Meged oil drilling project, which the 2 groups will jointly operate

Energy 36.5

‐

Israel Hewlett Packard (HP)

USA Hewlett‐Packard to buy NUR Macroprinters, a maker of industrial wide‐format digital inkjet printers, for 117.5 million USD


‐

Israel Goldman Sachs

USA The American investment bank to invest 100 million USD for a 16.6% stake in MobilEye, a provider of vision‐based driver assistance technologies


‐

Israel Philips Nether‐lands

The Amsterdam‐based company acquires Raytel Cardiac Services to Israeli SHL Telemedicine for 110 million USD


‐

Israel Hexagon Sweden The Stockholm‐based company acquires CogniTens, a start‐up specialised in advanced 3D optical technology


‐

Israel Akron USA The US town of Akron to invest 1 million USD in the technological incubator of Targetech in Netanya


‐

Israel EFI USA EFI to invest 3.5 million USD in Israeli Kornit Digital in order to develop high‐end industrial digital inkjet printers


‐

Israel Optium USA The US based manufacturer of optical subsystems for telecoms and cable TV networks acquired Kailight Photonics for 35 million USD


‐

Israel 21 Ventures USA American tech investment fund to buy a 29% stake in Israeli electronic security solutions start‐up, Hadas, for 18 million NIS


‐

Israel Motorola USA The US‐based giant company to buy stake in the technological company Amimon


‐

Israel Motorola USA The US‐based giant company to buy Terayon Communications Systems, a supplier of digital telecom equipment, for 140 million USD


‐


114

Host country

Company /Investor

Country of origin


Jobs

Israel Motorola USA The US‐based company to establish its 4th Israeli R&D centre located in the north of the country for 70 million USD and plans to create 200 jobs


200

Israel Candela USA The US company to acquire laser specialisng start‐up Inolase for 16.5 million USD

Electr. hardware

12.1‐

Israel Eastman Kodak

USA The US based company to inaugurate its new R&D centre in Israel which will create 1,000 jobs


1 000

Israel Polycom USA The American company specialising in videoconference technologies to acquire Destiny Conferencing for 47.6 million USD


‐

Israel Nextwave USA The US‐based company specialising in wireless technologies to acquire the Israeli Wi‐fi network solutions Go‐Networks for 46.6 million USD


‐

Israel Alfred Mann / Bioness

USA A biotech investor to buy a 40% stake in Neuromuscular Electrical Stimulation Systems for 75 million USD


‐

Israel Nokia Siemens Networks

Finland Nokia‐Siemens Network to complete acquisition of carrier Ethernet specialist Atrica


‐

Israel Nokia‐Siemens Network

Finland Nokia‐Siemens Network to expand its Israeli R&D centre and plans to create additional jobs up to 510


100

Israel Boston Scientific

USA One of the world’s largest developers and manufacturers of medical devices to buy Remon Medical for 80 million USD


‐

Israel eBay USA In partnership with its local subsidiary Shopping.com, Ebay is to open a technological centre

Software ‐

‐

Israel Intel / Intel Capital

USA Intel Capital to invest in Aternity, a supplier of application management software for IT enterprises

Software ‐

‐

Israel Intel / Intel Capital

USA Intel Capital to invest in Ceedo, an Israeli computer company

Software ‐

‐

Israel Reuters UK The news agency to acquire Israeli ClearForest, a start up specializing in text analytics solutions for 25 million USD

Software 18.3

‐

Israel KCS Private Equity

USA Israeli branch of US investment fund to take a significant stake in insurance software company FIS Solutions Lt

Software 0.0

‐

Israel Oracle USA American software company to create a R&D centre in Israel through its subsidiary Demantra bought in 2006

Software ‐

‐


115

Host country

Company /Investor

Country of origin


Jobs

Israel AOL USA The US‐based company to acquire Quigo, an internet advertising provider, for 363 million USD

Software 265.3

‐

Israel Microsoft USA The multinational to invest 100 million USD in its second R&D centre created in Tel Aviv in 2006 and intends to create 150 additional jobs

Software 73.1

150

Israel ICAP UK British inter‐dealer broker to buy a 100% of Traiana, a provider of post‐trade processing services to financial institutions, for 238 million USD

Software

173.9

‐

Israel Google USA The famous web search engine to inject 1 million USD in Israeli start‐up Maxthon, the developer of a special browser dedicated to China

Software

0.7

‐

Israel GlassHouse USA GlassHouse, an IT consultancy firm, to acquire local software companies MBI and Integrity Systems for 22 million USD

Software 16.1

‐

Israel Siemens / SMAC Partners

Germany Siemensʹs venture capital unit SMAC Partners to buy Israeli software start‐ups Runcom Technologies, Flash Networks and Image ID

Software 0.0

‐

Israel Silicom Ventures Fund

USA US Silicom Ventures Fund invests 750 000 USD in Yoggie Security Systems, a developer of network security solutions

Software 0.5

‐

Israel LivePerson USA The US‐based provider of internet chat software, to buy the computer enterprise Kasamba for 40 million USD

Software 29.2

‐

Israel IBM USA UAEʹs company to launch a distribution chain in Morocco to market Nokia mobile products

Software ‐ ‐

Israel Microsoft USA The US multinational firm to buy Secured Dimensions, a provider of security solutions for software publishers

Software ‐

‐

Israel Cisco Systems

USA The American computer company to invest in OpTier, a start‐up specialised in business transaction management

Software ‐

‐

Israel Google USA The famous web search engine company to inaugurate its new R&D and marketing centre in Tel Aviv et continue to expand workforce

Software ‐

‐

Israel Entropic USA The US‐based technological group specialised in semiconductor systems has acquired Arabella Software

Software ‐

‐

Israel Software AG

Germany German software company to buy for 26 mln USD the legacy application modernization product line of Jacada

Software 19.0

‐

Israel Software AG

Germany German software company to acquire an 80% share in its Israeli distributor SPL Software, based in Tel Aviv, for 61.6 mln USD

Software 45.0

‐


116

Host country

Company /Investor

Country of origin


Jobs

Israel Rocket Software

USA The American company acquires the enterprise software developer NetManage for 69 million USD

Software 50.4

‐

Israel Amdocs USA The US‐based company specialised in billing and customer‐care software to buy SigValue for 85 million USD

Software 62.1

‐

Israel Jain Irrigation Systems

India India‐based Jain Irrigation Systems to buy the Israeli manufacturer of advanced irrigation technologies Naʹan Dan for 21.5 million USD


‐

Israel Sun Pharma‐ceutical

India Indian pharmaceutical company to acquire Israeli generic drug maker Taro for 454 millionUSD

Drugs 82.6

‐

Israel Morning side Group

China The Hong‐Kong‐based company to invest in Medicure, a cardiovascular drug discovery and development company

Drugs ‐

‐

Israel Cair LGL France French medical device company to buy Israeli DefinitIVe Medical, a manufacturer and marketer of intravenous infusion pumps

Drugs ‐

‐


USA Israeli branch of US investment fund to take a 51% stake in Brand Industries, a manufacturer of metal products for power stations and other uses

Metallurgy

5.0

‐


USA Israeli branch of US investment fund to take a 51% stake in employment agency Danel, specialised in nursing staff, for 88 million NIS


‐

Israel Babcock & Brown Capital

Australia The Australia‐based company to acquire through his branch Directories & Media Investments the Israeli Yellow Pages for 123 million USD


‐

Israel AT&T USA Worldʹs largest telecommunications services company to acquire Israeli Interwise, web‐conferencing services company, for 121 million USD

Telecom

88.4

‐

Israel Ashmore Group

UK The London‐based fund management company to acquire Israeli ECI Telecom in partnership with Israeli Swarth for 1.2 billion USD

Telecom

438.5

‐

Israel AOL USA The US‐based company purchases Yedda, an Israeli start‐up specialized in semantic research

Telecom ‐

‐

Israel BCD Travel USA The US‐based tourism company, specialised in business travel, to launch operations in Israel


‐

Jordan EuroMENA fund

Lebanon The private‐equity fund to invest 3.2 mln USD in the market leader in cold cuts and sandwich meats in Jordan and Palestine

Agro‐business 2.3

‐

Jordan Chery Automobile

China The China‐based auto maker to invest USD 30 million to create a car assembly facility

Automotive 21.9

‐


117

Host country

Company /Investor

Country of origin


Jobs

Jordan Hebei Zhongxing Automobile (ZXAuto)

China The Chinese firm to team up with local Ayass Motors to set up for 30 mln USD in Umm Rasas the first private car assembly and manufacturing

Automotive

21.9

‐

Jordan Tiger Global Management

USA The American investment fund to buy Abraaj Capitalʹs stake in Maktoob.com Inc., a news website in Arabic

Other ‐

‐

Jordan Dubai Holding + Dubai Islamic Bank


JD Capital and Dubai Islamic Bank to acquire a majority stake in Industrial Development Bank via a 100 mln USD capital increase


‐

Jordan Dubai Holding / Jordan Dubai Capital


JD Capital and the Social Security Investment Unit will each hold a 25% stake in Inwan, a mortgage finance company, with a capital of 75 million USD

Bank & insurance

13.7

‐

Jordan Kuwait Finance House

Kuweit Kuweit‐based banking group to create KFH‐Jordan, a 50 mln USD wholly owned subsidiary of KFH‐Bahrain


‐

Jordan Rasmala United Arab Emirates

Dubai‐based Rasmala investment group to buy a minority stake in Optimiza, another Jordan‐based investment company


‐

Jordan Global Investment House

Kuweit The private equity investor to raise stake in Union Bank Ltd. to 25.93% after acquiring a 20% stake earlier in November 2007, for a total 65 mln JOD

Bank & insurance

‐

‐

Jordan Amlak United Arab Emirates

Dubai‐based mortgage specialist to set up Amlak Finance Jordan with Dubai Holding, Arab Banking Corporation, Jordan Kuwait Bank and GIH

Bank & insurance

‐

‐



30% stake in Madaen Al Sharouq, partnership with Madaen Al Nour Real Estate Investment and Development in Madinat Al Sharq, Zarqa

Bank & insurance

‐

‐

Jordan Western Union

USA Jordan Islamic Bank to sign an agreement with Western Union to facilitate funds transfer into the Hashemite Kingdom


‐

Jordan Gama Turkey The company is the winning bidder of 600 million USD BOT contract for Disi water conveyance project and will run it for a period of 40 years


438.5

‐

Jordan M1 Group Lebanon Beirut‐based family holding to buy a 26.6% stake in Royal Jordanian for about 50 mln JOD


‐


118

Host country

Company /Investor

Country of origin


Jobs

Jordan Parsons Brinckerhoff

USA The JIEC in a JV with PBI Aqaba Industrial Estates, a subsidiary of the American civil engineering company, to develop an industrial estate in Aqaba


‐

Jordan National Industries Group

Kuweit National Industries Group of Kuwait to buy a 20% stake in the Middle East Complex project, for 40 million JOD


‐

Jordan Infrastructure Developt. Company

Others Infrastructure Development Company, a consortium of Chinese‐Pakistani‐Jordanian companies, won the bid for Amman‐Zarqa rail route BOT contract


‐

Jordan Kipco / URC Jordan

Saudi Arabia

The group to buy a 12.5% share in Abdali development, which was a 50‐50 JV between Jordanʹs property investment firm Mawared and Saudi Oger


22.8

‐

Jordan Dubai Construction Company


Dubai Construction Company to start the construction of its Vertex Tower and Residences project in Amman for 90 million JOD


‐

Jordan Tamleek United Arab Emirates

The real estate company started construction work on the Jabal Amman Residence, its new project in the Third Circle area in the capital


‐

Jordan The Land Investment & Real Estate Developt.

Qatar Qatar‐based The Land Investment & Real Estate Development is developing a USD70m residential project in the Madinat Al‐Sharq development


51.2

‐

Jordan Aramex PJSC


Aramex to set up a logistics platform and a training centre to support activities in the Mafraq Development Zone


‐

Jordan Savola Saudi Arabia

The Saudi Arabia based industrial Savola to buy 5 % stake in Tameer Jordan Holding company for 26.6 million USD


‐

Jordan Aéroports de Paris

France Queen Alia International Airport to be expanded under a 500 million USD BOT contract by an international consortium led by Aeroports de Paris


‐

Jordan ADIC United Arab Emirates

Queen Alia International Airport to be expanded under a BOT contract by an international consortium including Abu Dhabi Investment Company


‐

Jordan Joannou & Paras‐kevaides

Greece Queen Alia International Airport to be expanded under a 500 million USD BOT contract by an international consortium including J&P


‐


119

Host country

Company /Investor

Country of origin


Jobs

Jordan National Industries Group / Noor

Kuweit Queen Alia International Airport to be expanded under a 500 million USD BOT contract by an international consortium including the Kuwaiti company


‐

Jordan Sadullah Khan & Brothers

Pakistan A consortium with Pakistanʹs Sadullah Khan & Brothers and Chinaʹs CETC International wins the Amman‐Zarqa Light Rail System BOOT contract


‐

Jordan Mitsubishi Japan Jordan Phosphate Mines Company and Japanʹs Mitsubishi Corporation to build a 300 million USD JV fertiliser complex

Chemicals 109.6

100

Jordan IFFCO India Indian fertiliser producers team up with Jordan Phosphate Mines Co. to set up a 52/48 350 mln USD JV phosphoric acid plant

Chemicals 127.9

100

Jordan Venture Capital Bank

Bahrain Bahrain‐based investment bank to team up with 2 Jordanians to set up a 65 million USD JV fertiliser plant by 2009

Chemicals 23.8

300

Jordan Arabian Cement Co.

Saudi Arabia

The Saudi cement producer to build a 110 million USD new cement plant in Katrana


‐

Oman Nuqul Jordan The Oman‐based group to create a local subsidiary called Moro Tissue, dedicated to the handkerchiefs production


‐

Jordan Majid Al Futtaim (MAF)


Majid Al Futtaim to open Jordanʹs first Carrefour hypermarket in City Mall, Amman

Distribution ‐

450



A 51% stake in state‐owned Central Electricity Generating Company sold to an international consortium led by JD Capital for 320 mln USD

Energy

233.9

‐

Jordan OPIC USA US governmentʹs OPIC to provide 70 million USD to back Mitsui and AESʹs JV electrical power plant project

Energy 51.2

‐

Jordan Sonoran Energy

USA US‐based Sonoran Energy signed with the government a production agreement for the Azraq block, including the Hamza oil field

Energy ‐

‐

Jordan Petrel Resources

Ireland Irish exploration group gets East Safawi block Energy ‐

‐

Jordan Fajr Natural Gas & Transmission

Egypt Jordanian‐Egyptian Fajr Natural Gas & Transmission Company to establish a subsidiary to run a $400 million gas pipe project on a BOT basis

Energy

292.3

‐

Jordan Unknown Russia A Jordan‐Russian JV is developing new products for tapping the sun et wind potential of the region

Energy ‐

200


120

Host country

Company /Investor

Country of origin


Jobs

Jordan AES + Mitsui / AES Jordan

USA A 60/40 joint‐venture between US‐ based AES and Japanese Mitsui will build a 370‐MegaWatt plant at a cost of about 300 million USD

Energy

219.2

‐

Jordan Middle East Specialized Cables Company (MESC)

Saudi Arabia

The firm from Saudi Arabia teams up with Jordan New Cable Company and Japanʹs Fujikura for a $49.4m cabling manufacturing facility

Metallurgy

36.5

‐

Jordan Emaar Properties


Emaar Industries & Investments Multiforms to establish an aluminium manufacturing plant, a 20m USD investment

Metallurgy 14.6

‐

Jordan Fujikura Japan The firm teams up with Jordan New Cable Company and MESC specialised Cables of Saudi Arabia for a 49.4m USD cabling manufacturing facility

Metallurgy

36.5

‐

Jordan Al Tuwairqi Saudi Arabia

Dubai‐based mortgage specialist to set up Amlak Finance Jordan with Dubai Holding, Arab Banking Corporation, Jordan Kuwait Bank and GIH

Metallurgy

‐

‐

Jordan Beirut Real Estate

Lebanon New company Amman Real Estate Management & Services to be set up in JV by Abdali and Beirut Real Estate Management & Services Company


‐

‐

Jordan Oger / Cyberia ‐ Abdali

Saudi Arabia

Cyberia, a 95% owned subsidiary of Oger and Abdali Psc, a PPP in which Saudi Oger has a 43.75% stake, to create Abdali Communication Company

Telecom

10.5

‐

Jordan Batelco Bahrain Batelco, which owns 96% of GSM operators Umniah Télécom to invest 10 mln JOD in its local infrastructures

Telecom 10.9

‐

Jordan National Industries Group / Noor

Kuweit Noorʹs telecom subsidiary to buy an additional 11.6% stake in Jordan Telecom for 190 million USD, owning a total 21.6% of the operator

Telecom

147.5

‐

Jordan Emaar Properties


Emaar International Jordan to develop Samarah Dead Sea Golf & Beach Resort, a 354 million JOD project


‐



JD Capital and the Social Security Investment Unit to invest 50 mln USD in ʹMunya Woodland Resort & Spaʹ, to be built by 2010 in Dibeen

Tourism, catering

18.3

‐

Jordan Rotana Hotels


Rotana Hotels to open an high standard hotel in Amman downtown


‐


121

Host country

Company /Investor

Country of origin


Jobs

Jordan USJHT / Kempinski

Saudi Arabia

The hotel group will open in 2008 a new hotel in Aqaba, being developed by United Saudi Jordanian Hotels & Tourism Company


‐

Lebanon International Investors Group

Kuweit IIG to set up Jousour, a Shariah‐compliant investment bank, with Hayek Group and will build its headquarters in Beirut for 100 million USD

Bank & insurance

73.1

‐

Lebanon Bank of Sharjah


The UAE‐based banker to acquire Lebanese Banque de la Bekaa for 25 million USD with plans to rename it and recapitalise it


‐

Lebanon Stow International


Two luxury residential projects in Beirut city center, Marina I and Marina II, worth 300 mln USD


‐

Lebanon Aramex PJSC


UAE‐based Aramex to launch its new logistics platform in the new Beirut logistics free zone


‐

Lebanon Kipco / United Real Estate

Kuweit Kipcoʹs United Real Estate teams up with Haririʹs Horizon Development Co to build a 100 million USD five‐star hotel and a shopping mall in Verdun


‐

Lebanon Intel / Intel Capital

USA Intel Capital to invest 500,000 USD in an innovative technological incubator in Lebanon in view to fund various start‐ups


‐

Lebanon Al Massaleh / Tameer Real Estate

Kuweit The subsidiary of Kuwait‐based Al Massaleh develops Star Tower, a 4‐star hotel located in the heart of Beirut which will open its doors in March 2008

Tourism, catering

‐

‐

Lebanon Kipco / United Real Estate

Kuweit United Real Estate teams up with Haririʹs Horizon Development to build a 45 million USD luxury hotel (management contracted to Kempinski)

Tourism, catering

32.9

‐

Lebanon Gourmet Gulf Company


UAE‐based Gourmet Gulf Company announces its 40 million USD 2007 expansion plan, including Lebanon and Egypt


‐

Libya First Gulf Bank (FGB)


First Gulf Bank to set up a 50/50 JV with state‐owned ESDF to establish Gulf‐Libyan Bank, a fully fledged commercial bank in Tripoli


‐

Libya BNP Paribas France The French banker is the winner of the bid and is detaining a 19% share of the Libyan Sahara Bank for a cost of 145 million EUR


‐

Libya Boustead Singapore

Singapore The Singapore‐based engineering company invests 197 million USD in a 65/35 JV with a local construction company to create a township in Al Marj


93.6

‐


122

Host country

Company /Investor

Country of origin


Jobs

Libya Sacyr Vallehermoso

Spain Creation of Ledico Libya, a 60/40 JV with Libyan Company for Development and Investment Authority to develop infrastructure projects


‐

Libya National Real Estate Company

Kuweit Kuwaitʹs National Real Estate Company to join Libyan companies for financing the 75 million USD project of a waterfront development near Tripoli


‐

Libya Al Maabar United Arab Emirates

Emirati consortium to set up with Libyaʹs Social & Economic Development Fund a 50/50 JV focused on tourism and real estate projects


‐

Libya Sacyr Vallehermoso

Spain Spanish construction firm to join forces with state‐owned Libyan Company for Development and Investment through SV Ledico Libya, a 60/40 JV


‐

‐

Libya Christ Water Technology Group

Austria The Austrian technological group to associate with El Zulal municipality through the joint‐venture El Zulal Water Technology Joint Co


‐

Libya Yara International

Norway The Norwegian fertilizer producer and Libyaʹs NOC to set up a JV for the development of existing NOC plants and new ones

Chemicals ‐

‐

Libya ASEC Cement

Egypt Citadel Capitalʹs ASEC Cement to construct a greenfield cement factory in Libya


‐

Libya ExxonMobil USA Exxon Mobil signed an exploration and production‐sharing agreement (EPSA) with Libyaʹs NOC to initiate exploration in the Sirte basin offshore

Energy

144.0

‐

Libya Occidental Petroleum

USA The company wins for EUR 10 mln a gas‐exploration license for 4 blocks in the Syrte basin, commits to invest 70 mln USD in exploration

Energy

58.5

‐

Libya RWE Germany The company wins a gas‐exploration license for 4 blocks in the Berka‐Benghazi region covering 10.289 sq km

Energy 55.5

‐

Libya Tatneft Russia Russian Tatneft to sign a 30‐year oil and gas exploration contract

Energy ‐

‐

Libya Tatneft / TNG‐Group

Russia The fully owned subsidiary of Russia‐based Tatneft creates Tahara Petroleum in partnership with a Libyan company

Energy ‐

‐

Libya ENI Italy The group is to pay half of a joint investment programme with Libyaʹs NOC worth 28 billion USD over 10 years

Energy 10

816.1

‐

Libya Sonatrach Algeria Algerian giant wins gas exploration licenses for 4 blocks in the Ghadames Basin, 50/50 JV with Indian Oil Corporation and Oil India

Energy ‐

‐


123

Host country

Company /Investor

Country of origin


Jobs

Libya Dow USA Libya’s National Oil Corporation and The Dow Chemical Company form a JV to expand the Ras Lanuf petrochemical complex

Energy 73.1

‐

Libya Petro‐Canada

Canada Canadian company to invest heavily in a joint investment programme with NOC worth 7 bn USD in exploration projects in the Sirte Basin

Energy 1 695.5

‐

Libya Royal Dutch Shell

Nether‐lands

Dutch‐British energy giant picks up blocks 1 and 3 in contract area 89 in the Sirte Basin, and invests a total 198 mln USD for permits and exploration

Energy

144.7

‐

Libya Gazprom Russia Russiaʹs gas export monopoly to invest 200 million USD to prospect and develop offshore block 18 with Libyaʹs NOC

Energy 146.2

‐

Libya Gengroup S.R.L.

Italy The engineering company is building a thermodynamics cycle plant for solar energy production, a project worth 15 million USD

Energy 11.0

‐

Libya BP UK The British oil group inks a 900 million USD energy exploration deal with Libya after having been forced out in 1974

Energy 657.7

‐

Libya Chinese Petroleum Corp

Taiwan Taiwanʹs Chinese Petroleum Corp to invest $34 million over the next three years to drill three exploratory wells and conduct exploration

Energy

24.8

‐

Libya PGNiG Poland Polish gas monopoly wins gas exploration licenses for blocks 1 and 2 in the Murzuq basin (contract area 113)

Energy 78.9

‐

Libya Gazprom Russia Russian gas export monopoly wins gas exploration blocs 1, 2 and 3 in contract area 64 in the Ghadames Basin

Energy ‐

‐

Libya Indian Oil Corporation + Oil India

India The groups win with Sonatrach gas exploration licenses for 4 blocks in the Ghadames Basin, a 50/50 JV

Energy ‐

‐

Libya Fin‐meccanica

Italy The Italian company has signed an agreement with the Libyan government to create a JV in the sector of defence and security technologies


‐

Libya IB Maroc Morocco Ex‐subsidiary of French IB group, bought by local management in 2006, to set up its second African subsidiary, in Libya

Software ‐

‐

Libya QGMD Qatar Qatar‐based medical devices manufacturer to set up a distribution network in Libya

Drugs ‐ ‐

Libya Al Wifak Al Ifriki

Tunisia The Tunisian businessman to start the sale of aluminium production in Libya through a new society

Metallurgy ‐

‐

Libya El Sewedy Egypt The Egyptian group to set up an 365 million EGP cables factory with Libyan state‐owned partners

Metallurgy 27.1

‐


124

Host country

Company /Investor

Country of origin


Jobs

Libya Bayahi / TPR

Tunisia The subsidiary of the Bayahi group to set up a new aluminium plant near Tripoli which will be operational in 2008

Metallurgy 15.5

‐

Libya Ernst and Young

UK Big Four consultancy to set up a Tripoli office with 50 staff by end of 2008


25

Libya InterContinental

UK InterContinental Hotels will run a new InterContinental Tripoli developed by local Magna by 2010, as well as the historic Al Waddan hotel

Tourism, catering

‐

‐

Libya Peroco Switzer‐land

Swiss based Company Peroco to invest 140 million EUR for the Andalus tourist centre in Tripoli


‐

Libya Korea Kumho Petrochemical Co

South Korea

Daewoo Engineering and Construction to invest 60% of 163 million USD for the construction of the ʹDaewoo Tripoliʹ hotel


‐

Malta Methode Electronics

USA The group to close its Scottish automotive parts manufacturing plant and transfer all production lines to the existing facility in Malta

Automotive

9.4

170

Malta Total / Hutchinson / Pamargan

France Pamargan Malta, a subsidiary of Totalʹs Hutchinson, to inaugurate new premises in the Xewkija Industrial Estate, Gozo

Automotive ‐

250

Malta HSBC UK HSBC to expand its call centre in Swatar, investing 5.5mln EUR to enlarge the premises and hire 250 extra staff


250

Malta ESI Entertainment / Citadel Commerce

Canada Citadel Commerce which is an ESI Entertainment subsidiary, is relocating its activities from Vancouver to Malta


‐

Malta Miller Group

UK Edinburgh‐based group to develop for 46 mln GBP the Point Shopping Centre in Silema, as part of the Midi Consortiumʹs Tigné Point Project

Distribution

60.0

‐

Malta Navico Sweden The leader in marine electronics for recreational boating to create a commercial, educational and R&D platform in Maltaʹs MARSEC‐XL cluster

Electr. hardware

‐

‐

Malta Finultra Italy Italian firm to set up Maresi, a local subsidiary dedicated to the production of specialised electronic equipment used by the maritime industry

Electr. hardware

‐

16

Malta ABB / ABB Lummus

Switzer‐land

Swiss engineering group to create a maintenance centre for marine turbochargers, automation and propulsion systems


10


125

Host country

Company /Investor

Country of origin


Jobs

Malta Wamgroup / Oli

Italy Oli, part of Wamgroup, to invest 1.5 mln EUR in new plant manufacturing industrial equipment and employing 30 people


30

Malta Sterling SNIFF Italia

Italy Italian manufacturer of pharmaceutical active ingredients to scale up operations at Maltese plant

Drugs 7.0

‐

Malta Actavis Iceland Iceland‐based generic giant to expand its existing facility in Malta

Drugs 17.5

40

Malta Antal International

UK Antal International, a recruitment company, to open an office in Malta


‐

Malta Corporate English / Ecorp English

Ireland The Ireland‐based group to set up an e‐learning training center for international companies


117

Malta Alcatel‐Lucent

France The French‐American telecommunications group to open a new branch in Malta

Telecom ‐

‐

Malta Save group / Airest

Italy The airline restoration company, which is a subsidiary of Italian Save since 2006, is opening a new plant in Malta


‐

Morocco Alimentos Naturales

Spain The Spanish group, known for its El Hostal brand, to build an agrofood packaging facility in Casablanca

Agro‐business ‐

‐

Morocco Maersk Denmark The shipping company to open a customer service center in Casablanca

Agro‐business ‐

‐

Morocco Kraft Foods USA The American multinational firm injects an extra 22 million USD in the capital of Kraft Foods Maroc


‐

Morocco Todolivo Spain The Spanish olive oil producer to operate 330 ha of groves with local partners, with 600 extra ha to be added soon

Agro‐business ‐

‐

Morocco Van Rijn / Dynagri

Nether‐lands

Van Rijn to invest 100 million MAD in an experimental farm, a transformation factory and a conditioning site

Agro‐business 9.0

‐

Morocco Nutrinvest‐Sovena + Somed

Portugal Soprolives, a Somed‐Nutrinvest partnership, integrated olive oil production complex in Tamellalt

Agro‐business ‐

52

Morocco Valeo France 200 million MAD in capacity expansion at its Bouznika plant, while negotiating the sale of the its electric cables branch to German Leoni

Automotive 18.0

450

Morocco Clarcor USA US Clarcor buys a 80% stake in Moroccan automotive part manufacturer Sinfa

Automotive ‐

‐

Morocco Simonin France French SME is investing 20 million MAD to launch a new production unit based in Mohammedia, dedicated to automotive electronic components

Automotive

1.8

240


126

Host country

Company /Investor

Country of origin


Jobs

Morocco Renault‐Nissan

France The Renault‐Nissan alliance committed to set up a 600 million Euros automotive complex in Tangiers free zone due to start in 2010

Automotive 600.0

6 000

Morocco Sumitomo / Sews Maroc

Japan The Tokyo‐based giant to create a car wiring system manufacturing unit in Kenitra, its third in the country, for 280 million MAD, creating 1 400 jobs

Automotive

25.2

1 400

Morocco Dekra Germany The group wins a tender for the creation of a network of 37 technical centers across the Kingdom

Automotive ‐

‐

Morocco Leoni / Leoni Wiring Systems

Germany Leoni opens a manufacturing unit in the industrial park of Bir Rami for an amount of approximately 246 million MAD, creating 1700 jobs

Automotive

22.2

1 700

Morocco Delphi USA The US‐based auto parts manufacturer to relocate its Spanish production in Tangiers, creating 3000 jobs

Automotive 27.0

3 000

Morocco Renault / Somaca

France Renault to increase the manufacturing capacity of its local subsidiary in order to produce more Logans for exports to Spain and France

Automotive

‐

300

Morocco Readerʹs Digest

USA Readerʹ s Digest to make a foray into Maghreb, starting by investing 18 million USD in Morocco

Other 1.6

‐

Morocco Société Générale / SGAM Al Maroc

France Creation of 2 investment funds targeting local real estate market and managed by SGAM Al Maroc, a new subsidiary in Casablanca

Bank & insurance

‐

‐

Morocco Caisse dʹEpargne/ CDC/ Viveris Management

France Birth of Viveris Istithmar, a 55/45 JV between Viveris Management and local BCP, aimed to manage the Altermed Maghreb investment fund

Bank & insurance

54.5

‐

Morocco Caixa Spain The Spanish bank to open its first Moroccan branch in Casablanca, with more openings planned


‐

Morocco Caja Mediterraneo

Spain The Spanish bank buys a 5% stake in the BMCE for 132 million EUR with a view to establishing new partnerships


‐

Morocco Zurich Assurance

Switzer‐land

The Swiss insurerʹs local subsidiary to open 10 new branches throughout the country and to have new headquarters built by the end of 2007


‐

Morocco Risco Previdencia Investimento

Portugal The insurer to establish a subsidiary in order to follow its Portuguese customers investing in Moroccan real estate


‐


127

Host country

Company /Investor

Country of origin


Jobs

Morocco Venture Capital Bank + various

Others The Bahrain‐based bank and its Koweiti partners to create a new Moroccan company named Mozon Investment Holding for 20 million USD


‐

Morocco Deutsche Bank

Germany German‐based giant bank to launch Ardim, a 1 billion MAD real estate investment fund, incorporated under Moroccan law


‐

Morocco Alwaleed bin Talal / Zephyr

Saudi Arabia

Saudi prince Walid Ibn Talal to buy a 15% stake in Saham, a Moroccan holding which owns 2 insurance companies, CNIA and Essaâda


‐

Morocco Renta / Mixta Africa

Spain Construction in Martil (Tétouan) of another residential complex plus a hotel for 140 million MAD


‐

Morocco PSA / Gefco France Already present in Morocco, the French specialist in automotive logistics to create a new platform in Tit Mellil


100

Morocco Gilmar / Gilmaroc Seaside Resort

Spain Gilmaroc Seaside Resort, a JV including Spanish promoter Gilmar, to set up a real estate project of 3.9 billion MAD in Tangiers


252.2

‐

Morocco GLA Entreprises / Satram

Gabon The Gabonese company, directed by a Moroccan, acquires Société Marocaine de Dragage des Ports, Drapor, for 327 million MAD


29.5

‐

Morocco Al Maabar / Reem


The Emirati consortium to launch Reem Morocco, a local subsidiary in charge of its 6.5 billion MAD Atlas Garden project in Marrakech


6 500

Morocco Al Maabar United Arab Emirates

The consortium has a 50% stake in the 750 million USD Bab Al Bahr development in the Bouregreg valley


‐

Morocco Balearia Spain The Spanish group will take control of Comanavʹs passenger transport recently segregated by CMA CGM as a distinct subsidiary


‐

‐

Morocco CMA‐CGM France The French group and its allies buys a 100% of the Comanav for 200 million EUR and gets another 20% stake in one of Tangiersʹ new container terminal


‐

Morocco Cosfara Italy The Italian real estate company to invest 20 million MAD in the Houda residential complex in Azemmour


‐

Morocco Joca Spain Spanish civil engineering company Joca to invest 3.2 million EUR in a liquid sanitation treatment plant for the city of Chefchaouen


‐


128

Host country

Company /Investor

Country of origin


Jobs

Morocco Fercam Italy The logistics company to create a subsidiary in Tangiers called Trans Fercam Maghreb


‐‐

Morocco Groupe Mory

France Mory group to invest 5 million EUR in a new 10 000 m2 logistical hub near Casablanca


‐

Morocco Marina d´Or Spain The Spanish promoter to buy lands in Morocco in order to launch various real estate operations


‐

Morocco Mandarine group (La Perla)

France The real estate developer to build a residential complex in Tamansourt, near Marrakech


‐


France The real estate developer to build a residential complex in Tamesna, near Rabat


‐


France The real estate developer to build a residential complex in Zahrat Annakhil, on the road to Fès


‐

Morocco Life Valley France The promoter specialised in value‐added residences to launch a project with local partner of medical residence in Marrakech


‐

Morocco CMA‐CGM France The group buys stake in SOMAPORT, a local company dedicated to logistics recently created by Comanav


‐

Morocco Veolia / Amendis Branes

France Veolia Morocco to buy Somed (33%) and ONAʹs (16%) stakes in Amendis Branes, a water and electricity unit in Tanger


‐

Morocco NMPP France Sochepresse, a subsidiary of French NMPP, to launch a 8 mln MAD modernisation programme


‐

Morocco Pizzorno Environnt. / Segedema

France A consortium including Pizzorno gained a 15 year concession in the Tangiers Med zone and will invest 39 million EUR to modernise the infrastructures


19.5

‐

Morocco Bunge Brazil Bunge and Office Cherifien des Phosphates to form a JV fertilizer production company with Bungeʹs investment totalling 54 m USD

Chemicals 39.5

‐

Morocco Knauf Germany The German group to create a new subsidiary based upon the two recently acquired Moroccan companies Agapol and Agapolymer

Chemicals ‐

‐

Morocco Amiantit / Amitech

Saudi Arabia

The company Amitech, specialised in glass fibre and detained in equal parts by Moroccanʹs ONA and Saudiʹs Amiantit, will employ 100 workers

Chemicals

13.5

100

Morocco Procter & Gamble

USA P&Gʹs subsidiary for North Africa to invest MAD 600 million over 10 years, with 200 in the midterm for expanding capacity at its Mohammedia facilities

Chemicals

19.8

40


129

Host country

Company /Investor

Country of origin


Jobs

Morocco Industrias Titan

Spain The Spanish industrial paints producer to invest 3 million Euros in 2008 in a new production plant based in Tangiers

Chemicals 3.0

‐

Morocco Kohler / Jacob Delafon Maroc

USA Jacob Delafon Maroc, JV between American Kohler and Moroccan El Alami, to double its local output and multiply the showrooms


13.2

‐

Morocco International Paper

USA The Memphis‐based company brings to 100% its stake in its subsidiary Compagnie Marocaine des Cartons et Papiers


‐

Morocco Holcim Switzer‐land

The Moroccan subsidiary of Switzerland‐based Holcim to build a waste treatment centre near Casablanca for 44 million MAD


‐

Morocco Piscines Groupe

France The France‐based swimming‐pool manufacturer sets up its first Moroccan production unit


‐

Morocco Truffle / Osead

France The oil and mineral extraction company, part of Truffle fondʹs investment portfolio, to set up Osead Maroc Mining


‐

Morocco Truffle / Osead

France Truffle to buy, through Osead Maroc Mining, a 70% stake in Compagnie minière de Touissit from Franceʹs Nord Est company


‐

Morocco Armas Quintero

Spain Spanish construction company to invest 6 million EUR in a prefabricated factory unit in Agadir, creating 60 jobs


60

Morocco Lubasa Spain New cement factory between Kenitra and Sidi Kacem (Gharb), an investment worth 1.9 billion MAD, operational by 2010


170

Morocco Minco USA The US‐based company specialised in space aeronautics to invest an extra 150 million USD in order to extend its activities in Morocco


250

Morocco Leoni / Furas

Germany The producer of electronic components for domestic appliances is relocating from Spain to Casablanca where it has been operating since 2005

Electronic components ‐

‐

Morocco Alcen / Tronico

France Electronic devices supplier to invest 30 million MAD in the expansion of its productive capacities, creating 200 new jobs


200

Morocco Adetel France The French manufacturer of electronic cards to set up Adetel Maroc in Casablanca


‐ ‐

Morocco Nesk Trading / Nesk Investment

Saudi Arabia

The local subsidiary of Saudi franchise specialist to set up with Aksal the 2 billion MAD Moroccoʹ Mall in Casablanca

Distribution

‐

‐

Morocco Libaud France The distributor of construction materials creates its first Moroccan major surface in Casablanca for an amount of 100 million MAD

Distribution 9.0

‐


130

Host country

Company /Investor

Country of origin


Jobs

Morocco GBF France The group sets up a national distribution network for Indian Mahindra cars, through Mediauto, a new subsidiary

Distribution ‐

‐

Morocco i2 United Arab Emirates

UAEʹs company to launch a distribution chain in Morocco to market Nokia mobile products

Distribution ‐

100

Morocco Taurus / Big Distribution

Spain Spanish white goods manufacturer to become local Big Distributionʹs main shareholder and turn it into a commercial platform for Africa

Electronic ware ‐

‐

Morocco BP UK BP granted two 5 year‐ prospecting permits ‐ Agadir Maritime I and II ‐ and a contract for a survey licence in the Western Souss Onshore zone

Energy

‐

‐

Morocco Hunt Overseas

USA US group to start oil industry exploration in the Tadla region

Energy ‐ ‐

Morocco Shahzad International / Petroleum Exploration

Pakistan The Pakistan‐based company Petroleum Exploration gets an oil exploration license in the Essaouira region

Energy

‐

‐

Morocco Moravské Naftové Doly / MND Maroc

Czech Republic

MND Maroc Limited, a subsidiary of Czech Moravské Naftové Doly gets an oil exploration licence in South Morocco

Energy

‐

‐

Morocco Theolia France The French SME to buy from EDF a 84.5% stake in Compagnie Eolienne du Détroit, which runs wind farms near Tetouan

Energy 0.0

‐

Morocco Theolia France The group to set up in Casablanca a 51% owned subsidiary for to emerging markets, which will dominate 4 subsidiaries including Theolia Morocco

Energy

‐

‐

Morocco Transatlantic Maroc

Canada The Canada‐based company gets an oil exploration license in the Rif region

Energy ‐

‐

Morocco Cabre Maroc

Cyprus The Cyprus‐based company operating in the Kingdom since 1997 gets an oil exploration license in the Fès region

Energy ‐

‐

Morocco Genting Oil & Gas

Malaysia The Kuala Lumpur‐based company gets an oil exploration license in the Tarfaya region

Energy ‐

‐

Morocco Tamoil / Tamoil Sakia

Libya New local subsidiary Tamoil Sakia to invest USD 100 mln in exploration, production, transformation and distribution of oil and gas products

Energy

73.1

‐

Morocco Dell USA The US‐based computer company creates an offshore center in Casanearshore, creating 200 jobs


200

Morocco Comeca France The French manufacturer of electric boards to expand its activities in Mohammedia


‐


131

Host country

Company /Investor

Country of origin


Jobs

Morocco Wincor Nixdorf

Germany Wincor Nixdorf, a supplier of hardware/software for the banking sector to set up a ʹmonitoring centreʹ and a professional training centre


‐

Morocco Société Générale / Europe Computer Systems (ECS)

France Creation of Europe Computer Systems International Maroc (ECSIM), an 85%‐owned subsidiary of ECS, a provider of information systems

Software

0.7

‐

Morocco GenApi France GenApi, French software developer for notaries, creates a distribution branch in Morocco

Software ‐

‐

Morocco Corebridge UK The British company specialising in the development of softwares to set up a subsidiary in Casablanca

Software ‐

‐

Morocco France Telecom / Sofrecom

France Sofrecom, a France Telecom subsidiary specialised in software engineering, to settle down in Rabat Technopolis creating 100 jobs

Software ‐

100

Morocco GFI Informatique

France French IT services company to create a new services centre in Casablanca specialised in telecom and finance software

Software ‐

150

Morocco Bull France French software services company to hire 200 new people for its Moroccan centres

Software ‐

200

Morocco Sopra Group

France French IT consultancy to set up a subsidiary named Soprantic with a registered capital of 5.3 million MAD

Software 0.5

‐

Morocco Afina Spain The Spanish group specialised in networks security solutions to set up a local subsidiary in El Jadida

Software ‐

‐

Morocco Safran / Sagem Sécurité

France Global leader in biometric application to set up local subsidiary, Sagem Sécurité Maroc, to co‐develop software with other R&D centres of the group

Software

5.4

200

Morocco Sage UK British leading supplier of business management software and services to create a subsidiary after buying part of its local partner Editinfoʹs assets

Software

‐

15

Morocco Cyo France The French e‐Business specialist creates a Moroccan subsidiary

Software ‐

‐

Morocco Ubisoft Entertaint.

France The French game developer plans to expand its Casablanca’s studios and create 150 new jobs by 2010

Software ‐

150

Morocco Steria France French IT services company to strengthen its position in Morocco by increasing employee figure up to 200

Software ‐

200


132

Host country

Company /Investor

Country of origin


Jobs

Morocco United Technologies Corp / Zardoya Otis

USA Spanish arm of US elevator leader to acquire for 21.9 million EUR a 51% stake in Otis Maroc, a JV between Otis France and Moroccoʹs Holmarcom


21.9

‐

Morocco Auvergne Aéronautique / Casa Aéronautique

France French company to invest 150 million MAD through its local subsidiary Casa Aéronautique in a manufacturing unit in Nouasseur, creating 350 jobs

Transport equipment

13.5

350

Morocco EADS / Socata

France EADS subsidiary’s Socata to launch a production unit of electronic components near Casablanca and will create more than 120 jobs


120

Morocco Segula Technologies

France The engineering company to buy Moroccan SEFCAM, an aeronautic industry subcontractor in Casablanca


‐

Morocco Dion France The French medium size company specialised in aerospace industry to set up a new plant for EUR 3 million in Tangiers

Transport equipment 3.0

‐

Morocco ARM France French aerospace group to invest 33 million MAD in Nouaceur to set up a unit assembly, creating around 100 new jobs

Transport equipment 3.0

100

Morocco Indo Spain Indo Maroc to invest 18.5 million MAD in the modernisation and expansion of its Tangiers facilities, in order to export to Europe its optical products

Drugs

1.0

‐

Morocco Naturex France The specialist in natural extracts for the pharmaceutical industry to increase its stake in Naturex Morocco and expand the Nouaceur factory

Drugs

2.0

‐

Morocco Arcelor Mittal / Sonasid

India The Indo‐European giant to invest 13 million USD in a new scrap iron crusher for its subsidiary Sonasid near Casablanca

Metallurgy 9.5

‐

Morocco Delattre Levivier

France The Moroccan group owned by French shareholders to conduct a capital increase of 50 million MAD for its forthcoming Initial Public Offering

Metallurgy

3.2

‐

Morocco Univers Acier

Turkey The Moroccan‐Turkish partnership (48/52) to invest 872 million MAD to build a steel plant by 2009, creating 300 jobs

Metallurgy 39.3

300

Morocco Abu Dhabi Investment Authority / Somed


Somed, through Zellidja, to increase paid up capital of Société immobilière Al Aïn (SIAA) and invest in a residential building in Casablanca

Metallurgy

1.7

‐

Morocco EDS / EDS France

USA US‐based BPO giant to create a 700‐position site in Rabat, through a 51/49 JV with Moroccan Caisse de Dépôt


700


133

Host country

Company /Investor

Country of origin


Jobs

Morocco Groupe Crit France Crit Maroc to open a branch in Tangiers, and plans to add 2 more to its temporary work agencies network in 2008


‐

Morocco Expomedia Group

UK The company specialised in commercial events to build a congress centre in Agadir for 350 million MAD


300

Morocco Scacchi & associés

France The Paris‐based company specialised in Auditing and accounting to set up in Casablanca its Moroccan subsidiary called Scacchi Maroc


‐

Morocco Brinkʹs USA The US‐based company invests MAD 33 million in order to expand the activities of its local subsidiary


‐

Morocco Sofema‐Groupe / Sécurité Sans Frontières

France The specialist in security services to corporations to set up its first African subsidiary in Rabat


‐

‐

Morocco Egis France The fully‐owned subsidiary of Caisse des Dépôts et Consignations inaugurates two agencies in the Kingdom


‐

Morocco La Poste / Chronopost International

France The subsidiary of France‐based La Poste opens its fifth branch in the country for MAD 4 million


‐

Morocco BNP Paribas / Arval

France Launch of the vehicle mobility observatory in Morocco


‐‐

Morocco Reinhardt Marville Torre

France The Paris‐based business law firm to establish in Casablanca


‐

Morocco Serenus conseil

France French public relations firm to set up a subsidiary in Morocco to stay close to its French customers


‐

Morocco Cetim France The French aeronautical engineering group to set up Cetim Maroc Développement, its first local branch


‐

Morocco Atos Origin France The French group is investing an extra 6 million EUR in its service centre based in Casashore, creating 400 jobs by 2009


400

Morocco Auxigene Maintenance

France The French industrial maintenance company to create a Moroccan subsidiary for 5 million MAD


200

Morocco Data Base Factory

France French CRM specialist to create Data Base Factory Morocco in Casablanca, a 300‐position platform


300


134

Host country

Company /Investor

Country of origin


Jobs

Morocco Exco France France The French auditing firms network to create a new Moroccan subsidiary located in Casablanca


‐

Morocco Interface France The French consultant, specialised in industrial management, to create a Moroccan subsidiary called Interface Cherif


‐

Morocco Logica CMG UK The UK‐based company to strengthen its positions in the Kingdom by investing an extra 5 million EUR in its service centres


330

Morocco Fruit of the Loom

USA FOL to invest 130 million EUR for the creation of a second textile manufactory in the Skhirat‐Témara region

Textile 124.2

‐

Morocco Sedetex France The French medium size firm creates a production unit in Tangier for 1.7 million MAD

Textile 0.2

‐

Morocco Camargo Correa / Tavex

Brazil The textile company Tavex to shut down the Alginet and Navarres factories in Spain and increase productive capacity in Morocco

Textile 59.0

100

Morocco Prysm ID UK The British company to open a new commercial branch in Morocco to meet the needs of its customer base in the apparel and retail industries

Textile

‐

‐

Morocco Accor France The group dominates Accor Services Maroc, a JV formed with local Rahal to market meal tickets and other vouchers for employees of big companies


‐

Morocco Resid Hotel France BMCEʹs subsidiary Actif Management to create Resid Hotel Maroc, a JV with Resid Hotel France for the management of tourist apartments


‐

Morocco Inhova Spain Inhova, owned by Iberostar, Caja Madrid, Caixa Galicia and Sa Nostra to buy 70% of a hotel in Mediterrania Saïdia, to be managed by Iberostar


‐

Morocco Octogone Hotels

USA The American company to invest USD 12 million in a hotel project in Marrakech, creating 130 jobs


130

Morocco CMKD Kuweit The consortium to acquire Marrakech convention centre and the Mansour Eddhabi hotel, already under its management, for 980 million MAD

Tourism, catering

72.4

‐

Morocco Best Western

USA The US‐based hotel group sets up in Casablanca and plans to inaugurate 15 new locations in the country by 2011


‐

Morocco Orizonia Corporación / Iberostar

Spain The group to build and operate a tourism and residential complex in Marrakech for 2.382 billion MAD


846


135

Host country

Company /Investor

Country of origin


Jobs

Morocco Dalloyau France The French pastrycook to set up in Morocco through 3 franchised companies in Casablanca, Rabat and Marrakech


‐

Morocco Assoufid BV Nether‐lands

The promoter invested MAD 1 bn for the Ourika Golf and Ourika gardens projects, to be offered for sale by end of 2007


‐

Morocco Menatlas Luxemburg

Luxembourg‐based promoter to build for 805 million MAD a tourism complex in Al Ouidane (Marrakech), and of which it will be the direct manager


‐

Morocco Essential Developts.

UK Essential Developments, a development company based in the Isle of Man, to invest 58.4 mln EUR in ʹWyndham Port Lixus Resortʹ near Larache


‐

Morocco Tremon Spain Spanish real estate company to invest EUR 20 million euros to build ʹEl balcon de Arcilaʹ, a tourist complex south of Tangiers, by 2009


500

Morocco Alliance France The promoter to team up with BMCE and Nouvelles Frontieres on Al Baraka, a 600 mln MAD tourism project in Marrakech


250

Morocco Pierre et vacances

France The company to build 129 high standard flats in Marrakechʹs Palmeraie

Tourism, catering

‐ ‐


France The real estate developer to create a luxurious resort complex in Ksour Jenna, near Marrakech


‐

Morocco Urbagolf Spain The promoter to invest 7.3 billion MAD in a gigantic resort project in Souiria Qdima, creating 12 000 jobs


###

Morocco Hapimag Switzer‐land

Swiss company to build its first African tourism complex in Marrakech for 10 mln CHF, which will be run by Hapimag Morocco


‐

Morocco Orascom / OHD

Egypt OHD was awarded 15 million m² at Oued Chbika which it will turn into a tourist project of 800 million USD though a 70/30 JV with CDG


‐

Morocco Abu Dhabi Investment Authority / Somed / Wahate Aguedal


Raffles Fairmont, property of UEAʹs Kingdom Hotels Investment to operate by 2009 a new Raffles Resort Marrakech being built by Somed for 500 mln MAD

Tourism, catering

45.0

‐

Syria Anadolu / Coca‐Cola Icecek

Turkey Coca‐Cola Icecek, 51% owned by Turkish conglomerate, to acquire a 50% stake of Syrian Soft Drink Sales and Distributions for TRY 411,000

Agro‐business

0.2

‐


136

Host country

Company /Investor

Country of origin


Jobs

Syria Saipa Corporation

Iran Saipa to form a 80/20 JV with a local partner in order to create SIVECO, a car assembly plant located in Hessia amounting 50 million USD

Automotive 29.2

‐

Syria Qatar Investment Authority (QIA)

Qatar QIA to establish the Syrian‐Qatari Holding, with capital of 500 million USD, to invest in real estate, industry, banking, agriculture

Other

365.4

‐

Syria Byblos / ADIR

Lebanon ADIR, a Lebanese insurer owned by Byblos and Natixis (34%), authorised to set up Adir (Adonis) Syria with initial capital of 1.25 bn SYP


‐

Syria Arab Sh.M.L Bahrain Arab Sh.M.L., the Bahraini Arab‐International Insurance Company and a group of Syrian expatriates to set up the Arab Insurance Company Syria

Bank & insurance

15.3

‐

Syria Crédit Agricole / Banque Saudi Fransi

France BEMO Saudi Fransi Bank to open a new branch in Damas, the 15th in the Syrian capital


‐

Syria Bemo Lebanon BEMO Saudi Fransi Bank to open a new branch in Damas, the 15th in the Syrian capital


‐

Syria Global Investment House

Kuweit GIH to launch an Islamic bank in Syria with a capital of 500m USD and is considering others investment projects


‐

Syria National Bank of Kuwait (NBK)

Kuweit National Bank of Kuwait will hold a 49% stake of its 106.3 million USD Syrian branch

Bank & insurance

57.3

‐

Syria Aga Khan Devlpt. Network

Switzer‐land

Opening of the first licensed bank for microfinance The Central Bank of Syria to issue a license for the opening of the first bank for microfinance

Bank & insurance

‐

‐

Syria International Financial Advisors

Kuweit The Kuwaiti company has received the necessary approval from authorities to establish a financial services company


‐

Syria Fortitude Asset Management + Al Aqeelah

Malaysia The fund manager to set up in 2008 with Kuwaitʹs Al‐Aqeelah a JV Takaful company in Damascus

Bank & insurance

‐

‐

Syria Audi Saradar Group / Bank Audi

Lebanon Bank Audi Syria opens its first branch in the coastal city of Latakia on the Syrian coast

Bank & insurance

‐

‐


137

Host country

Company /Investor

Country of origin


Jobs

Syria Bank of Jordan

Jordan Bank of Jordan to team up with local businessman Tarif Al‐Akhras to set‐up a 30 million USD subsidiary called Bank of Jordan – Syria (49/51)


‐

Syria Al Aqeelah Kuweit Building of a low income housing area near Damascus and development in Sayedah and Zeinab for 400 mln EUR


‐

Syria Global Investment House

Kuweit The promoter to buy a 50% interest in Garden City Resorts, a mixed‐use project near Damas


‐

Syria M.A. Kharafi Group

Kuweit The Kuwaiti company to launch a first private taxi company called ʹStar Taxiʹ in Damascus


‐

Syria Syrian‐European Company for Dry Ports

Non available

The Syrian‐Lebanese‐European JV with 10 million USD in capital, to invest 25 million USD in 3 logistics platforms


18.3

1 000

Syria Aref Investment

Kuweit The group is about to finalise its Damascus Financial District project (500 million USD), while the “City of Development and Investment” still waits


365.4

‐

Syria Unknown Kuweit A Kuwaiti investor and his Syrian associate get a licence to build over the next 3 years various healthcare units for 104 million USD


2 700

Syria Orascom / OCI

Egypt Orascom Construction Industries established a JV (75/25) to build and operate a 440 million USD greenfield cement plant in northwest Syria


‐

Syria Knauf / Knauf Gips

Germany The Germany‐based company to create a local JV and develop a state‐owned gypsum plant located in Latakia


‐

Syria Eid Saudi Arabia

The Saudi Group is building a new bazaar specialised in building materials in Maʹaraba, Damascus‐countryside

Distribution ‐

‐

Syria Kurdi Group

Jordan Jordan‐ based KG and Syriaʹs Sabbagh to build by 2008 Shahba Mall, a 60 million USD shopping centre in Aleppo

Distribution 21.9

‐

Syria Spinneys United Arab Emirates

Spinneys, the Middle East supermarket retailer has signed a deal with Souria Holding a Syrian holding firm to set up a number of outlets in Syria

Distribution

30.2

‐

Syria CNPC China A 50 mln USD investment in extraction capacity at an oil fiel located in the North West

Energy 36.5 ‐

Syria Stroytrans‐gaz

Russia The Russian oil company invests 217 million USD to develop natural gas fields in the Northern Homs region

Energy 158.6

‐


138

Host country

Company /Investor

Country of origin


Jobs

Syria Al Bukhary Group

Malaysia The Malaysian group will have a 26% stake in a 2.6 bn USD JV refinery project with Venezuelan, Iranian and Syrian partners

Energy 494.0

‐

Syria NIORDC Iran National Iranian Oil Refining and Distribution Company to get 26% of a 2.6 bn USD JV refinery project with Venezuelan, Iranian and Syrian partners

Energy

494.0

‐

Syria PDVSA Venezuela The State‐owned oil company of Venezuela will have a 33% stake in a 2.6 bn USD JV refinery project with Syrian, Iranian and Malaysian partners

Energy

627.0

‐

Syria Gulfsands Petroleum

UK Partnership agreement with Sham Holding for the establishment of a 35/ 65 JV with a total capital of 5 mln USD for oil and gas exploration

Energy

3.7

‐

Syria Iraki consortium

Iraq Launch of development projects in energy infrastructure by Iraqi companies in Syria worth over 40 million USD and future investments worth 3 billion USD

Energy

29.2

‐

Syria Danial Industries

Pakistan The group is building for 15 mln USD the Four Points Hotel in Tartous, due to open by 2011, and managed by Starwood


‐

Syria Nesco / Nesco Group for Hotel Investments

Saudi Arabia

The Saudi group is building a third hotel in Damascus, the Kempinski Hotel Damascus, scheduled to open in 2010

Tourism, catering

‐

‐

Syria Nesco / Nesco Group for Hotel Investments

Saudi Arabia

The Saudi group is renovating a historic building in Damascus to turn it into the Kempinski Hotel Khan Sulaiman Pasha, due to open in 2009

Tourism, catering

3.2

‐

Syria Le Duff France French pastrycook to sign a 5 years franchising contract in view to set up 25 restaurant in Syria


‐

Tunisia CTIA Canada joint‐venture Canadian‐ Tunisian company CTIA (50/50) to produce tomatoes derived

Agro‐business ‐

‐

Tunisia IFFCO India Indian conglomerate to acquire biscuit company LʹAppetissante, counting on 700 employees in 2 industrial sites, for 6.2 mln TND

Agro‐business

3.6

‐

Tunisia Lesieur France The French group participates in oil producer Cristal Tunisie, with an equal stake as YK HMILA and Lesieur Cristal Maroc

Agro‐business 0.0

‐

Tunisia Draxlmaier Germany German manufacturer of car wiring systems to open a new factory for 60 million TND

Automotive 35.1

‐


139

Host country

Company /Investor

Country of origin


Jobs

Tunisia Sumitomo Japan The Japanese conglomerate to set up a new car wiring system manufacturing unit in Kef region, creating up to 2500 jobs

Automotive 2.9

300

Tunisia Sewon ECS South Korea

Korean giant in car wiring systems manufacturing to settle on 10000 sqm in Kairouan, creating 500 jobs

Automotive 8.8

500

Tunisia Kromberg & Schubert

Germany German car wiring systems specialist to establish a R&D and production facility in Beja industrial zone for 37 million TND

Automotive 21.6

300

Tunisia BNP Paribas / UBCI

France Tunisian bank UBCI, a French bank BNP Paribasʹs subsidiary, to open 19 new branches


‐

Tunisia BMCE Morocco BMCE to create with Tunisian Axis a new investment bank called Axis Capital


‐

Tunisia Banque Tuniso‐Koweitienne (BTKD)

Kuweit The 50/50 JV bank between Tunisian and Kuwaiti governments to open another branch in Tunis

Bank & insurance

‐

‐

Tunisia Investec Pan‐Africa Fund

South Africa

South Africa‐based investment fund to pass the 5% threshold in Banque de lʹHabitat


‐

Tunisia Groupe Caisse d’Epargne

France French banking group to acquire the 60% stake in Banque Tuniso‐koweitienne offered by the government for 300 million TND


‐

Tunisia Natixis (ex Natexis)

France Natexis to set up a new subsidiary in Tunisia Bank & insurance ‐

‐

Tunisia Stusid Bank Saudi Arabia

New agency to open in Nabeul for the Société Tuniso‐Séoudienne dʹInvestissement et de Développement


‐

Tunisia Tepe Akfen Ventisres

Turkey The Turkish consortium wins a 400 million Euros BOT contract for the construction of Enfidha airport and management of the Monastir airport


‐

‐

Tunisia Dubai Holding / Sama Dubai


Sama Dubai laid foundation stone of Century City and Mediterranean Gate mega project in Tunisʹ southern lake area, worth 14 billion USD over 15 years

PW, utilities, logistics 10

231.5

###

Tunisia Gujarat State Fertilizers & Chemicals (Gfcl‐Gsfc) + Coromandel Fertilizers

India Indian companies to establish Tunisian Indian Fertilisers S.A. (TIFERT), a JV with local partners, in order to create a phosphoric acid plant by 2009

Chemicals

60.3

‐

Tunisia BG Group UK The British gas producer to invest 130 million EUR in a sulphur transformation unit on its Sfax (Mahres) facilities

Chemicals 130.0

20


140

Host country

Company /Investor

Country of origin


Jobs

Tunisia BG Group / British Tunisia Acide Sulfurique

UK British energy company to invest 67 million EUR in another sulphuric acid plant on its Sfax premises

Chemicals

67.0

20

Tunisia Aricam Spain Spanish group to invest 200 million EUR in a new cement unit called ‘‘Compagnie de Ciment de Gafsa Aricam’’


‐

Tunisia Orascom / OCI‐GLA

Spain Spanish cement group, controlled by OCI, teams up with local Karthago on a new cement plant project in Gabes


‐

Tunisia Italcementi Italy Italian cement producer to create in Dahmani a new cement plan employing 300 people


300

Tunisia Al Hajri United Arab Emirates

Al Hajri to invest 2 million TND in company Papeterie du Belvédère


‐

Tunisia Prasa Spain Spanish Prasa to set up SOTACIG (Société Tuniso Andalouse de Ciment Gris) in Kairouan, with the planned creation of a new 250 mln TND plant


‐

Tunisia Prasa Spain Sotacib, owned by Spanish Prasa, to finalise a new plant project for 115 million TND and plans also the construction a new cement factory


‐

Tunisia JV Espagne /A. Saoudite /Irlande

Others New cement factory carried out within the framework of a quadripartite partnership for an investment of 220 million TND


‐

Tunisia Lacroix France Lacroix to open a new factory in Zriba, which will manufacture electronic cards and components


170

Tunisia BG Group UK British Gaz to invest 30 million USD in the next 6 years to explore Amilcar oil fields

Energy 21.9

‐

Tunisia Pioneer Natural Resources

USA The US‐based company plans to construct oil production facilities on the Jenein Nord Block

Energy ‐

‐

Tunisia Oil Search Australia The Sydney‐based oil company gets an exploration license covering a zone between Kef (north‐west) and Siliana (centre‐west)

Energy 5.8

‐

Tunisia BG Group UK The British gas producer to invest over 500 million USD to maintain and increase gas production at Miskar fields located in the south of Tunisia

Energy

365.4

‐

Tunisia BG Group UK British Gas to invest 800 million USD to operate Hasdrubal oil field; Tunisian partner Etap adding 400 million USD

Energy 584.7

‐


141

Host country

Company /Investor

Country of origin


Jobs

Tunisia Colony Capital / Tamoil

USA Tamoil, owned by Colony Capital to set up a local subsidiary in order to be closer to the developments in the Skhira oil refinery project

Energy ‐

‐

Tunisia Newell Rubbermaid / Reynolds France

USA Sanford, subsidiary of Newell Rubbermaid, is transferring its French Reynolds subsidiary production to SIAB, its Tunisian partner


‐

‐

Tunisia TFO Spain The Catalan group, specialised in optical fibber telecommunication networks, to set up a subsidiary in Tunis after the creation of TFO Morocco in 2002


‐

Tunisia Phone Control

France The French publisher of telemarketing software to create a branch in Tunis, before to extend in Morocco and Algeria

Software ‐

‐

Tunisia Codix France French Codix, IMX software publisher specialised in project management, to turn its commercial office into a development centre

Software ‐

‐

Tunisia Open Wide France The SME, specialised in open source solutions, to set up a local subsidiary, Open Vision, hiring 15 engineers

Software ‐

15

Tunisia Datavance France Software services company to set up a 30 technicians‐strong subsidiary to provide support to French corporate customers

Software ‐

30

Tunisia Dalcom International

Canada The Canadian group specialised in e‐business management to set up in Tunisia

Software ‐

‐

Tunisia Piterion Germany The Stuttgart‐based software house to set up a local subsidiary in Tunis and to recruit local engineers

Software ‐

‐

Tunisia Microsoft USA The Microsoft Innovation Centre to establish in the El Ghazela Technopolis

Software ‐ ‐

Tunisia XRT France The French software publisher leader in financial and treasury management software to strengthen its partnership with Tunisian Datasoft

Software

‐

‐

Tunisia Satec Spain Home‐grown Netcom bought by a Spanish company whose ambition is to turn Tunisia into a ICT services export platform for the region

Software

0.0

‐

Tunisia Triton France The French company to create a new subsidiary based in Tunis and plans to recruit some local employees

Software ‐

‐

Tunisia Festo Germany Festo, specialising in industrial regulations, sets up its subsidiary Festo Maghreb in the Borj Cédria technopole


‐

Tunisia Kipco / North Africa Holding

Kuweit North Africa Holding to acquire 51% of the privatised Société tunisienne des industries électriques et mécaniques


‐


142

Host country

Company /Investor

Country of origin


Jobs

Tunisia West Pharmaceutical Services

USA American manufacturer of medical products and instruments to create a new plant in Medjez industrial zone

Drugs ‐

‐

Tunisia Pfizer USA The US‐based pharmaceutical firm decides to enlarge the facilities of Pfizer Tunisie, by adding a 850 m2 distribution centre

Drugs ‐

‐

Tunisia Procidec France The French group to create a Tunisian subsidiary, called Magmet, investing 500,000 euros and hiring 30 people

Metallurgy 0.5

30

Tunisia Oxymetal France Oxymetal Tunisia to extend existing facilities in Soliman free zone

Metallurgy ‐

‐

Tunisia Kobold Germany Kobold to establish its first subsidiary in Tunisia


‐

Tunisia Delta Partners


The Dubai‐based investment fund to enter the capital of the media company Karoui&Karoui


‐

Tunisia Christ Water Technology / Aqua Engineering

Austria The Austrian engineering group to set up a Aqua Engineering subsidiary to capture part of the regional market in drinkable water treatment


‐

‐

Tunisia Stream USA The specialist in call‐centre services to open a new site in Tunisia


165

Tunisia Interoute UK Interoute and Tunisie Telecom to offer new VoIP and SDH connections between Africa and Europe

Telecom ‐

‐

Tunisia Damartex France Damartex to transfer the activities from its subsidiary company Despature and Fils in Roubaix to a new site to be built in Tunisia

Textile ‐

‐

Tunisia Kuwait Real Estate Investment Company

Kuweit CTKD to invest 131 million TND for a big resort project in Sousse

Tourism, catering

76.6

‐

Tunisia MBI International

Saudi Arabia

The London based company to buy Africa Al Mouradi Hotel, ex‐Meridien, for 43 million EUR


‐

Tunisia Accor France The French group to invest in 2 news hotels in Tunis and Djerba, and to renovate another one in Tozeur


‐

Tunisia Fram France French tour operator to build up a new tourism unit in Mahdia governorate which will be available in 2008


‐

Tunisia MBI International

Saudi Arabia

Saudi billionaire Mohamed Bin Issa Al Jaber to buy 3 more hotels in Tunis and a golf in Monastir


‐


143

Host country

Company /Investor

Country of origin


Jobs

Tunisia Lafico / Laaico

Libya The Libyan State‐owned company to buy a 60% stake in Hotel Abou Nawas Tunis, its first investment in Tunisia


‐

Tunisia Carlson / Radisson

USA Rezidor to inaugurate a renovated hotel in Djerba and plans to buy others in Tunis


‐

Turkey Dr. Oetker Germany German agrofood company to spend 5 million EUR to expand its production facility in Pancar

Agro‐business 5.0

‐

Turkey Univeg Belgium Belgium‐based fresh produce distributor to buy Turkish fresh fig and cherry exporter Alara

Agro‐business ‐

‐

Turkey Cadbury Schweppes

UK Cadbury‐Schweppes to buy Turkish gum producer Intergum for 450 million USD


‐

Turkey Selonda Greece The Greek aquaculture group buys a 46% stake in Norwayʹs Fjord Marin Turkish subsidiary for 7.8 million EUR

Agro‐business 7.8

‐

Turkey Savola / Afia Saudi Arabia

Savolaʹs Afia acquired 100% of Yudum Foods, a Turkish edible oils producer, from NBK Capital Equity Partners Fund, for 70.7 mln USD

Agro‐business

51.7

‐

Turkey Templeton Asset Management

USA Templeton Asset Management to buy a 10% stake in Tat Konserve, a unit of Turkeyʹs Koc Holding, for 18 mln USD


‐

Turkey Ford / Ford Otosan

USA The 41% owned JV with local Koc group to inaugurate a new engineering centre in Gebze

Automotive 0.9

200

Turkey Ford / Ford Otosan

USA The 41% owned JV with local Koc group to expand productive capacities for 130 million USD

Automotive 95.0

‐

Turkey Iran Khodro (IKCO)

Iran Iranʹs carmaker to establish a network of representative offices and spare parts stores to supply Samand cars and after‐sale services

Automotive ‐

‐

Turkey ThyssenKrupp

Germany The German group to set up a new tailored blanks facility in Bursa

Automotive ‐

‐

Turkey Volvo / Renault Trucks

Sweden The group is to sign a partnership agreement with local Karsan in order to assemble its trucks in Turkey

Automotive ‐

‐

Turkey Magna Canada The spare parts supplier to invest $500 million in Turkey

Automotive 365.4

3 000

Turkey Mazda Japan Mazda Motor Corporation to set up a wholly owned distribution subsidiary for Turkish market

Automotive ‐

‐

Turkey Colony Capital

USA Acquisition of 55% of Mars Entertainment, plus 100 mln USD expansion plan to establish new movie theatres, restaurants and sports centers

Other

73.1

‐


144

Host country

Company /Investor

Country of origin


Jobs

Turkey Abraaj Capital / Almond Holding


Almond Holding AS, a subsidiary of Abraaj Capital Ltd, to acquire a 39.4% stake in Acibadem Saglik Hizmetleri and Ticaret for 600 mln USD

Other

438.5

‐

Turkey Walt Disney USA Disney channel to start its activities in Turkey, under the management of the Italian unit and with programs dubbed in Turkish

Other ‐

‐

Turkey Odien group

USA The fund to acquire a 25% stake in S Yayıncılık A.Ş., one of the leading Turkish radio broadcasting groups based in Istanbul, from Saran Media

Other

‐

‐

Turkey Odien group

USA The fund to acquire a minority stake in Turkish online social network Yonja.com

Other ‐

‐

Turkey Julius Baer Holding

Switzer‐land

Switzerlandʹs asset manager to buy for USD60 mln Şafak, a chain of Turkish hospitals, and spend another 200 mln USD over 2 years in expansion

Other

190.0

‐

Turkey Global Environment Fund

USA The firm buys Dentistanbul, Turkeyʹ s first and only private dental hospital

Other ‐

‐

Turkey ABN Amro Nether‐lands

ABN Amro Turkey to expand its network, with 5 new branches already operational and more openings planned in Bursa, Kayseri, Gaziantep


‐

Turkey Dallah al Baraka

Saudi Arabia

Albaraka Turk will add 17 branches to its 83 branches network by 2012


‐

Turkey Citigroup / Citibank

USA Citigroup to launch an equities business in Turkey with the acquisition of broker Opus Menkul Degerler


‐


USA Citigroup to launch an equities business in Turkey with the acquisition of broker Opus Menkul Degerler


‐

Turkey Groupama France Franceʹs Groupama to buy out small shareholdersʹs stakes in Basak Sigorta (Taris, Çukurovabirlik and Fiskobirlik), for a total 82 mln USD


‐

Turkey Eureko Nether‐lands

Dutch insurance giant Eureko to acquire a 80% stake in Garanti Sigorta and a 15% stake in Garanti Emeklilik ve Hayat for a total 465 million EUR


‐

Turkey Mapfre Spain The Madrid‐based company buys 80% of Cukurova Holding’s subsidiary General Sigorta for 285 million EUR


‐

Turkey CitiGroup / Citibank

USA The American bank to open first loan booking centre in Gebze, Kocaeli city


‐


145

Host country

Company /Investor

Country of origin


Jobs

Turkey Bank Hapoalim

Israel Bank Hapoalim, Israelʹs largest bank, bought 57.55% of Turkeyʹs Bank Pozitif for 100 million USD


‐

Turkey ING Nether‐lands

Turkeyʹs Oyak Bank to be sold to Dutch ING Bank for 2.673 billion USD

Bank & insurance 1 953.5

‐

Turkey Caixa Spain The third biggest Spanish bank after Santander and Bilbao banks to open branches in Turkey


‐

Turkey Wiener Städtische Versicherung / TBIH

Austria TBIH, a Amsterdam‐based insurance company, to buy in 2 successive moves a total 74.26% stake in Ray Sigorta


‐

Turkey Aviva UK UK based insurer to merger its life and pension business in Turkey with Sabanciʹs Ak Emeklilik for 100 million USD


‐

Turkey Crédit Suisse

Switzer‐land

Switzerlandʹs second largest bank to buy Turkish brokerage Baran Securities, and develop its local offer in equity sales, trading and research

Bank & insurance

‐

‐

Turkey Global Investment House

Kuweit The private equity investor to acquire, in partnership with local Yildiz Holding, a 60%% stake in Turkish leasing company Fon Finansal Kiralam A.S


‐

Turkey Merrill Lynch / Bosphorus Real Estate Fund

USA Merril Lynchʹs 50‐50 JV with Krea Gayrimenkul Holding to develop Neocity Adapazarı, at the central district of Sakarya

Bank & insurance

‐

‐


USA Merril Lynchʹs 50‐50 JV with Krea Gayrimenkul Holding to develop NeoCity Bahçeşehir ‐ Esenyurt for USD 130 mln, bue to open in 2009

Bank & insurance

47.5

‐

Turkey National Commercial Bank (Alahli)

Saudi Arabia

Saudi Arabiaʹs main bank is to pay just over USD1bn to acquire a 60% in Türkiye Finans Katılım Bankasi, a leading Islamic‐style banks

Bank & insurance

730.8

‐

Turkey Crédit Agricole Chevreux

France The financial analyst to create a 10‐people desk in Turkey


10

Turkey Bank TuranAlem / TuranAlem Securities

Kazakstan Almaty‐based banker TuranAlem acquires a 34% stake in local company Sekerbank for 300 million USD

Bank & insurance

219.2

‐


146

Host country

Company /Investor

Country of origin


Jobs

Turkey Standard Bank

South Africa

Standard Bank to acquire a 67% stake in Turkish Dundas Unlu Menkul Degerler, a securities and brokerage house


‐

Turkey Drake Management

USA New York‐based consultancy Drake Management to open an office in Istanbul in order to counsel the investors


‐

Turkey Deutsche Bank

Germany The German bank leader to acquire the international equities business of Turkish Turkiye Garanti Bankasi


‐

Turkey Merrill Lynch

USA Merrill Lynch sets up a subsidiary based on the assets of Tat, the local bank it bought recently


45

Turkey Morgan Stanley

USA Morgan Stanley received the appropriate approvals from the Capital Markets Board (CMB) of Turkey and plans to open an office in early 2007


‐

Turkey National Bank of Greece (Ethniki)

Greece NBG’s total participation in the share capital of Finansbank now amounts to 89.44%.

Bank & insurance 1 645.8

‐

Turkey NBK Kuweit National Bank of Kuwait to buy a 40% stake in Turkish Bank for 160 million USD

Bank & insurance

116.9 ‐

Turkey Oger Saudi Arabia

The Saudi Arabian holding of the Hariri family to buy Turkish MNG Bank for 160 mln USD


‐

Turkey Financial DImensions

UK London based Financial Dimensions to invest 200 million USD over 3 years in Turkey, starting with the 50 million USD Bay Peninsula project in Bodrum


‐

Turkey Fraport Germany German Fraport will operate with other partners 3 terminals at Antalya, Turkeyʹs second‐largest airport, thanks to a successful Euro 2.37 billion bid


1 208.7

‐

Turkey Dubai Holding / Sama Dubai


A branch of Dubai Holding buys land in Istanbul for USD705m and announces real estate projects totalling 5bn USD


‐

Turkey La Poste / Geopost

France The fully‐owned subsidiary of France‐based La Poste buys a 25% stake in Yurtici Kargo for 52 million USD


‐

Turkey Global Investment House

Kuweit Kuwait‐based investment group to buy an additional 5% stake in Turkeyʹs TAV Airports Holding, for around 70 mln USD


‐

Turkey KKR USA Investment firm Kohlberg, Kravis & Roberts to buy a 97.6% stake worth 882.2 million euros in UN Ro Ro, Turkeyʹs largest shipping firms


‐

Turkey Dogan Germany German logistics specialist Dogan to set up a subsidiary in Izmir


‐


147

Host country

Company /Investor

Country of origin


Jobs

Turkey Seko USA American logistics company to expand its activities in Turkey through a new headquarter based in Istanbul


‐

Turkey Corio Nether‐lands

Turkish developer Garanti Koza to build a residential and commercial complex in Istanbul’s Esenyurt with support from Dutch Corio


‐

‐

Turkey Camper & Nicholsons Marina Investments

UK Guernsey‐registered operator of marinas to get for 5 mln USD a 45% stake in Çesme Marina Infrastructure


‐

Turkey Lufthansa Germany Lufthansa to take over of Condor´s 50% stake in Sun Express (Gunes Ekspres Havacilik)


‐

Turkey Malaysia Airports Holdings

Malaysia A consortium with Malaysia Airports and Limak to spend 3.447 billion USD to build a new terminal and run for 20 years the Sabiha Gokcen Airport


‐

Turkey RS Platou Norway RS Platou to open an office in Istanbul to offer ship broking services


‐

Turkey EVN / WTE Wasser‐techink

Austria Austrian EVNʹs environmental services subsidiary WTE Wassertechnik wins a tender for Istanbulʹs wastewater treatment plant, investing 50 million EUR


‐

Turkey BASF Germany German chemical and pharmaceutical group to invest 10 million Euros to expand its production in Turkey, while it will close some European facilities

Chemicals

10.0

‐

Turkey International Specialty Products

USA International Specialty Products (ISP) has inaugurated a dedicated pharmaceutical laboratory in Istanbul

Chemicals 0.0

‐

Turkey Sika Switzer‐land

The Switzerland‐based chemicals producer Sika inaugurates a new production facility in Tuzla employing 40 people

Chemicals ‐

40

Turkey Sealed Air USA The company to buy 50% of Teknik Plastik Ambalaj Sanayi ve Ticaret A.S, a Teknik subsidiary producing cups and lids for dairy products

Chemicals

‐

‐

Turkey Hyosung Corp

South Korea

Hyosung Corp to invest 130 million USD in spandex manufacturing facilities to be located in Cerkezkoy, near Istanbul by 2009

Chemicals 95.0

‐

Turkey AMCOL International

USA AMCOL International to acquire a 10% of Turkish bentonite mining company Bensan Aktiflestirilmis Bentonit Sanayi ve Ticaret A.S. for 12.3 mln USD


9.0

‐


148

Host country

Company /Investor

Country of origin


Jobs

Turkey Vicat / Bastas Baskent Cimento

France Bastas Çimento, a Vicat subsidiary, to inaugurate its brand new kiln line near Ankara


‐

Turkey Cimpor Portugal Cimentos de Portugal to acquire entirely Turkish cement company YLOAC, a 50/50 JV between Lafarge and Yibitas Holding for about 548 million EUR


‐

Turkey Cimpor Portugal Portugalʹs Cimpor to invest 100 million EUR (134.2 million USD) to build a cement factory

Cement, glass, minerals 100.0 ‐

Turkey Cementerie Aldo Barbetti

Italy Gubbio‐based cement maker to team up with Turkeyʹs Sanko Holding, and get a 50% stake in Cimko Cimento ve Beton Sanayi


‐

Turkey Al Ghurair United Arab Emirates

Al Ghurair company from the UAE to invest 200 million USD in a new cement factory


‐

Turkey CRH Plc Ireland The firm buys 50% of Denizli Cement, a cement and ready‐mixed concrete business, from Eren Holdings


‐

Turkey Orascom / OCI

Egypt Orascom Construction Industries to buy the remaining shares of its Turkish subsidiary Baticim for 508 million USD


‐

Turkey Saint‐Gobain

France Building materials maker St‐Gobain bought with Alghanim a 61.2% stake in Izocam, and is about to launch a public offer on the remaining shares


‐


USA Citigroup Venture Capital International to buy 30% of Boyner Department Stores and 50 % of luxury department store chain Beymen

Distribution 106.0

‐

Turkey Enstar Capital

UK Enstar Capital to purchase a retail park in Tekirdag for 12.5 million USD, and also bidding for Metroport, close to Ataturk Airport

Distribution

9.1

‐


Corio acquired a 40% interest in Teras Park shopping centre in Denizli for EUR 55 million

Distribution 55.0

‐


Corio to acquire the Adacentre shopping centre for 65 million EUR and a 7% interest in the Acibadem project in Istanbul

Distribution 65.0

‐

Turkey Genertec China Genertec, one of Chinaʹs top trading firms to set a branch in the Aegean Free Zone in Turkey

Distribution ‐

‐


Corio to sign a forward purchase agreement for the acquisition of a 100%‐interest in Tekira shopping centre in the centre of Tekirdag (west Turkey)

Distribution

‐

‐


Corio to buy the ADA shopping center in Adapazari for 65 million USD

Distribution 47.5

‐


149

Host country

Company /Investor

Country of origin


Jobs


USA Merril Lynchʹs 50‐50 JV with Krea Gayrimenkul Holding to buy Neo Shopping Mall in Eskisehir (Neo AVM Eskişehir) for 94 mln USD

Distribution

34.3

2 100


USA Merril Lynchʹs 50‐50 JV with Krea Gayrimenkul Holding to develop Neo Avm Pendik, a shopping mall, for 60 mln USD

Distribution

21.9

‐

Turkey Union Investment

Germany The German company invests 130 million EUR through a JV with Turkish MTM in order to develop the ʹForum Kayseriʹ shopping center by 2009

Distribution

130.0

‐

Turkey Meinl European Land

Austria The Austrian property company to develop a new shopping centre for 100 million EUR in Kahramanmaras, Southern Turkey

Distribution 73.1

‐

Turkey Quinn group

Ireland The Ireland‐based company to acquire a prestige mall located in Bahcesehir for 55 million USD

Distribution 40.2

‐

Turkey VastNed Retail

Nether‐lands

The Nether‐lands‐based group enters Turkey by acquiring Elysium Shops, a shopping centre in Istanbul at a price of 9.7 million EUR

Distribution 9.7

‐


Corio to acquire a 25% stake in GAC Gayrimenkul Yatırımı Real Estate

Distribution ‐

‐


Corio to acquire a 35%‐interest in Edip shopping center currently under development in Istanbulʹs Bagcilar district, for 21 million EUR

Distribution

21.0

‐


Corio to acquire a 50%‐interest in Esenyurt shopping centre currently under development in Istanbul for 42 million EUR

Distribution 42.0

‐

Turkey Metro / Media Markt

Germany The consumer electronics chain to open three mega stores by the end of 2007

Distribution ‐

‐

Turkey Tesco / Kipa UK New shops in Antalya, Çanakkale, Aydın, Lüleburgaz, Konya, İzmir, Uşak, Burhaniye and Çorlu, new distribution center in İzmir

Distribution 107.5

1 000

Turkey Bosch‐Siemens Hausgeraete (BSH)

Germany The German group to open a new dishwater factory and plans to make investments of TRY 74 m in 2007

Electronic ware

39.8

‐

Turkey Metalfrio Brazil Brazilian Metalfrio to acquire a 71% stake in Turkish refrigerator manufacturer Senocak Holding, for 32.6 million euros

Electronic ware 32.6

‐


150

Host country

Company /Investor

Country of origin


Jobs

Turkey Bosch‐Siemens Hausgeraete (BSH)

Germany German white goods JV Bosch und Siemens Hausgeräte to inaugurate a research centre in Istanbul Technical Universityʹs engineering department

Electronic ware ‐

‐

Turkey Indesit Italy Italyʹs Indesit has raised capacity at its white goods plant in Manisa to 1m units, and plans further relocations

Electronic ware 2.0

‐

Turkey General Electric / GE Energy Financial Services

USA GE to buy a 50% stake in Gama Energy and launch a joint investment programme worth 3 bn USD over 3 years, including Jordanʹs Dizi water project

Energy

877.0

‐

Turkey Indian Oil Corporation

India State‐run IOC has won the approval of Turkey’s energy regulator for setting up a 4.9‐billion USD refinery in Ceyhan

Energy 1 826.3 ‐

Turkey Socar Azerbaidjan The State Oil Company of Azerbaijan (SOCAR) and Turkey’s Turcas set up a JV for a 10 billion USD oil refinery project in Ceyhan

Energy 3 727.2 ‐

Turkey Innovative Energy Group


UAE‐based Innovative Energy Group agreed to form a 50/50 JV with local Turcas in order to set up 6 wind farms in Turkey

Energy 99.4 ‐

Turkey EWE Germany The German company bought a 40% stake of Bursagaz, owned by Turkish energy company Çalýk Energy

Energy ‐ ‐

Turkey Verbund Austria The Austrian companyʹs local JV EnerjiSA to invest 530 mln USD in developing by 2012 five hydroelectric power plant in the Anatolia region

Energy 193.7 ‐

Turkey Linde AG / Linde Group

Germany The German group takes control of the Turkish gas company Birlesik Oksijen Sanayi for 120 million USD

Energy 87.7 ‐

Turkey Verbund Austria The Austrian company takes a 49.99% stake in Turkish EnerjiSA for a sum of 327 million USD

Energy 239.0 ‐

Turkey Indian Oil Corporation

India IOC to get an option for 12.5% of the 1.5 billion USD Samsun‐Ceyhan oil pipeline to be built by ENI and Turkeyʹs Calik Group

Energy 137.0 ‐

Turkey Bene Austria The Austrian office furniture manufacturer to open various showrooms in Turkey


‐ ‐

Turkey Microsoft USA The US multinational firm purchased Turkish DevBiz Business Solutions

Software ‐ ‐

Turkey Ubicom USA American software company to open new research and development center in Gebze, Kocaeli, Turkey

Software ‐ ‐

Turkey NEC Electronics Corporation

Japan NEC Electronics Corp to establish a facility to develop software for semiconductors used in digital electronics products in Izmir

Software ‐ 5


151

Host country

Company /Investor

Country of origin


Jobs

Turkey Oger / Turk Telecom

Saudi Arabia

Turk Telecom, dominated by Oger Telecom, to buy a 100% of Innova Informatics Solutions

Software 7.6 ‐

Turkey Vaillant / Saunier Duval Iberica

Germany The company to buy through its Spanish subsidiary a 79% stake in heating specialist Demirdöküm from Koc Holding


227.1 ‐

Turkey Baxi Group UK British heating systems maker Baxi Group to invest some 100 mln USD in a JV boiler manufacturing plant


73.1 ‐

Turkey Piovan Italy Italian manufacturer in plastics to create a subsidiary with one headquarter in Istanbul and one office in Izmir


‐ ‐

Turkey DAM / Gadia

Spain The manufacturer of cutting machines for the marble and glass industry plans to set up a distribution network


‐ ‐

Turkey THK Japan The Japanese group specialised in ball bearing guiding outfits to open a new subsidiary in Istanbul


‐ ‐

Turkey Finmeccanica / Agusta Westland

Italy The group, Tusaş Aerospace Industries (TAİ) and local defence contractor Aselsan to assemble and manufacture parts of A‐129 attack helicopters

Transport equipment

‐ ‐

Turkey Global‐Hutchison

Hong‐Kong

Hong‐Kong based Global‐Hutchison in JV with Turkish EIB won the tender to develop and operate the Izmir port for 1.275 billion USD

Transport equipment

465.9 ‐

Turkey ISP USA The company has inaugurated a dedicated pharmaceutical laboratory in Istanbul

Drugs ‐ ‐

Turkey Avon Beauty Products

USA Avon Products, one of the worldʹs largest direct sellers of beauty products has set up a 20 million USD distribution centre

Drugs 14.6 200

Turkey LʹOreal France French cosmetics giant to buy Turkish hair care company Canan for an undisclosed sum, after approval of the deal by local authorities

Drugs 0.0 ‐

Turkey Zentiva Czech Republic

The Czech group, an affiliate of Sanofi, to buy 75% of Turkeyʹs biggest drug company Eczacibasi Generic Pharmaceuticals for 400 million EUR

Drugs 402.0 ‐

Turkey Arcelor Mittal

India The conglomerate to team up with local Borusan on a new 500 USD hot rolling‐mill in Gemlik

Metallurgy 182.7 ‐

Turkey Averys France French leader in industrial racking buys its Turkish competitor Standard which has a 50% local market share

Metallurgy ‐ ‐

Turkey Arcelor Mittal

India World leader steel company ArcelorMittal to acquire a 51% stake in Turkeyʹs Rozak for undisclosed sum

Metallurgy ‐ ‐


152

Host country

Company /Investor

Country of origin


Jobs

Turkey Compo‐nenta

Finland The Finnish metal sector company to increase its stake in Doktas Dokumculuk for 20 mln USD

Metallurgy 14.6 ‐

Turkey Magnitogorsk Iron & Steel Works

Russia Russian steel producer Magnitogorsk Iron & Steel Works to invest US 1.1 bn over 3 years in a metal works JV with local Atakas

Metallurgy 803.9 ‐

Turkey Daiyang Metal

South Korea

The steel company is relocating two production plants from South Korea to Turkey, in the city of Tekirdag

Metallurgy 5.0 ‐

Turkey Teka / Portinox

Spain Teka’s subsidiary Portinox to build a barrel plant in Turkey

Metallurgy ‐ ‐

Turkey Integrated Service Solutions

Denmark ISS, one of the world’s largest Facility Service Groups, to acquire Customer Management Services (CMC), a call center service company


‐ ‐

Turkey Serenus conseil

France Public affairs firm Serenus Conseil to set up in Turkey


‐ ‐

Turkey Donaldsons UK Donaldsons, one of Europe’s leading Shopping Centre Consultants, has opened its first office in Turkey, in Istanbul


‐ ‐

Turkey Vodafone / Vodafon‐Telsim Turkey

UK The Turkish subsidiary of British Vodafone will invest 1 billion USD to boost and upgrade its existing structures over the next two years

Telecom 730.8 ‐

Turkey Saudi Oger / Turk Telecom

Saudi Arabia

The Saudi group, owner through Turk Telecom of a 81% stake in Avea will spend 260 million USD in 2007 in upgrading its infrastructure

Telecom 190.0 ‐

Turkey Novator One

UK London‐based investment fund to become a shareholder of Netone Telecom (alternative telcom operator) via a 20 mln USD capital increase

Telecom 14.6 ‐

Turkey Oger / Turk Telecom‐Avea

Saudi Arabia

Turkish mobile operator Avea, controlled by Ogerʹs Turk Telekom, has inaugurated a new call centre in Istanbul

Telecom ‐ 60

Turkey Oger / Turk Telecom‐Avea

Saudi Arabia

Mobile operator Avea, controlled by Ogerʹs Turk Telekom, to invest heavily in its infrastructures thanks to a 1.6 billion dollar syndicated loan

Telecom 520.9 ‐

Turkey TeliaSonera / Turkcell

Sweden The Turkish operator, dominated by TeliaSonera, to expand its networkʹs voice and data traffic capacity

Telecom ‐ ‐

Turkey Samsonite USA The group buys 60% of Birlesik Seyahat Urunleri, subsidiary of Desa, for 10,5 million euros, in order to distribute its products in the region

Textile 10.5 ‐


153

Annex 2. Origin-destination cross table 2003-07 Destination The Maghreb Machreck Other MEDA Total Ori‐

gin In mln € Algeria Morocco Tunisia Libya Egypt Jord. Lebanon Syria Israel Turkey

Germany 114 352 15 462 5 164 388 237 1 252 3 073 Austria 108 43 1 257 1 408 Belgium 15 1 334 3 21 1 137 2 509 Spain 4 296 2 967 25 1 128 3 80 118 8 617 France 616 4 040 242 1 454 162 11 23 253 3 854 10 761Greece 41 69 2 599 2 719 Italy 183 481 189 84 2 323 9 1 152 4 421 Norway 1 622 1 622 Nether‐ 114 41 27 161 316 36 14 738 1 849 Portugal 23 84 28 0 135 Roy.‐plain 159 148 246 2 205 2 12 217 1 214 3 885 8 107 Sweden 4 266 42 2 526 2 839 Switzerland 229 451 80 6 121 142 1 042

Europe

Other Eur. 17 135 2 89 56 10 16 26 374 Canada 569 66 128 1 056 80 215 146 2 283 America USA 1 510 670 34 434 2 120 177 78 125 18 185 5 883 29 220 Egypt 2 299 29 88 2 416 Israel 449 449 Jordan 35 602 81 718 Lebanon 38 155 668 348 1 209 Morocco 24 37 85 146 Tunisia 21 34 6 7 21 89

MEDA country

Turkey 12 55 10 77 A. Saoud. 373 236 2 029 1 443 493 1 049 1 827 7 450 Bahreïn 484 224 1 393 71 2 172 Emirates 157 2 175 3 100 65 7 759 1 042 921 1 822 406 17 704 Iran 80 183 225 489 Koweït 1 176 129 214 1 928 809 253 1 350 948 6 807 Qatar 226 403 102 219 284 1 234

Gulf

Other MENA 97 144 1 166 408 Australia 205 96 33 338 China 543 52 701 32 108 34 4 1 475 Southern 10 2 16 520 548 India 16 51 46 1 209 32 99 1 453 Japan 14 50 309 6 334 714 Malaysia 2 540 262 804

Asia

Oceania

Autr. Asia 26 12 180 96 30 175 520 Brazil 1 318 2 8 329 Russia 89 10 2 071 1 045 3 215 Southern 500 500

Others

Autr. 61 232 150 19 161 2 625 Total 14 491 15 307 5 180 777 27 444 6 39 2 2 540 8 541 20 964 30 300 132 880

The main origin/destination couples (Europe/Maghreb, Europe/Turkey, America/Algeria‐Egypt‐Israel‐Turkey, and Gulf/Machrek), are highlighted.


154

Annex 3. Methodology Since January 2003, ANIMA has been inventorying all the direct investments made by foreign firms in the MEDA countries through the MIPO observatory (Mediterranean Investment Project Observatory). This information is collated from a synopsis of the announcements of investments which have appeared in the press or various publications by the French economic missions, bilateral chambers of commerce, etc.

On the condition that mention is made of the source (ANIMA‐MIPO), the information in the MIPO database may be used directly for scientific or promotional purposes. These data may be consulted on line (in simplified form) at http://www.anima.coop. Simple polling (selection) is possible.

The amounts, often found in US dollars, were converted for 2007 into euros at the annual average exchange rate of 1 USD = 0,73082 €. The following figure shows the exchange rates used for 2007 operations in MEDA currencies.

Country Currency (ISO 4217) 2007 Rate USA 1 Dollar USD 0,730820 €

Algeria 1 Dinar DZD 0,010688 € Egypt 1 Pound EGP 0,135743 € Israel 1 Shekel NIS 0,183450 € Jordan 1 Dinar JOD 1,092690 € Lebanon 1 Pound LBP 0,000511 € Libya 1 Dinar LYD 0,595701 €

Morocco 1 Dirham MAD 0,090080 € Syrian 1 Pound SYP 0,014721 € Tunisia 1 Dinar TND 0,584598 € Turkey 1 New Lira TRY 0,537314 €

Approach

The means used to detect foreign investment projects in the MEDA region combine:

Alerts from the Vigie economic watch system at AFII (Agence Française pour les Investissements Internationaux‐ Invest in France Agency) – based on the flow of main international economic and financial news ‐ (Factiva Reuters‐Dow Jones database);


155

Information directly acquired by the ANIMA team (RSS flows, contacts, reading of newsletters, etc);

The data transmitted by the Investment Promotion Agencies (IPA) partners of the ANIMA network.

This work does not purport to be comprehensive, in particular for the small projects, which often slip through the net. Information regarding the detected FDI projects is moreover often incomplete. Only those projects for which a minimal amount of information is available, such as an identified investor, his country of origin, the destination, the nature of the project, are retained and taken into account. In two thirds of the cases, the information collected comprises a quantitative element – either the amount of the investment, or the number of jobs created. Each project is accompanied by a detailed description. However, Annex 1 of this report excludes the data which are subject to copyright (the whole text announcing the project).

This work cannot purport either to be absolutely faithful to empirical truth, given that MIPO is largely based on secondary sources of economic information, whose reliability is heterogeneous. Now that it has gained some experience, the ANIMA team sharpened up its ability to discriminate between who is trustworthy and who is not.

The MIPO database is regularly updated a posteriori for the previous years, all information received on the investment projects being cumulated in order to keep a historical track by project and company. This explains certain modifications in the figures from one year to the next.

Selection criteria

The projects retained have to correspond to the definition of FDI, that is to say, an investment project announced by a foreign operator as certain, and with a close perspective (start‐up in the next 18 months) in one of the MEDA countries (MEDA 10 plus Cyprus, Malta and Libya). Simple supply contracts are therefore rejected (such company is chosen by such government or company to deliver equipment, turnkey facility, etc).

The mini‐projects (simple opening of a representation bureau, without the creation of a significant subsidiary, franchise, etc.), and the pre‐projects (simple intention to invest, but in the medium term or without a precise location yet) are however been conserved in other bases managed by


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ANIMA (SMILE, etc.). These confidential bases of prospects are exploited, for commercial ends, by the ANIMA network.

Recent methodological changes

Until 2006, the projects carried out by several foreign co‐partners had only been accounted for as a single project. The corresponding sum was therefore entirely attributed to the country of origin of the main foreign partner. This method maintained the number of detected projects closer to micro‐economic truth but prevented MIPO from measuring precisely the contributions of each of the investors, often based in different countries. Since 2006, these FDI projects promoted by multiple foreign investors have been divided into as many “sub‐operations” as there were “significant” foreign operators joining in a given project. They only amount to a small part of the database.

The multiplication of gigantic operations, amounting to many billions of dollars sometimes, reasserted the necessity for MIPO to smooth the forecast amounts, every time it was possible, by dividing them by the number of years needed to complete the implementation of the operation. This is important given the strong presence in the database of urban, real estate or tourism projects requiring several phases of implementation. Let us take an example: whereas the gross announced FDI amounts for the whole MEDA region where close to Euro 180 billion for the year 2006, this systematic smoothing brought the net figure down to 68 billion. Taking into account the difficulty to obtain detailed information about the financial structure of the detected foreign direct investments, MIPO manages that way to provide a good appreciation of the amounts really injected during the considered year.

The main disadvantage of this technique lies in the present incapacity of MIPO to take into account over the years n+1, n+2 the corresponding fractions of the total budget forecasts for the FDI projects recorded during the year n. Let us take another example: whereas in 2006, total budget forecasts of tourism projects added up to more than 30 billion euros, only 7 billion were taken into account as FDI flow in 2006, while the 23 billion euros corresponding to year 2, 3, 4, etc. of implementation of those great 2006 projects do not appear in the annual total ʺFDIʺ 2007 which is used as a basis for the majority of our analyses. With the reduction observed in 2007 in the number of tourism projects and the greater modesty of the projects’ budget forecasts, the MIPO data gives the misleading impression that


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Mediterranean tourism does not attract foreign investors any more, while the great projects announced in 2006 are actually being implemented in 2008… MIPO is therefore a good tool to follow‐up micro‐economic investment projects. The aggregate macro‐economic data are however to be taken with precaution.

In 2007 the sectoral nomenclature of ANIMA was slightly modified. The sector “Banks, insurance, trade, media” became “Banks, insurance, other financial services”: investments in the media sector are now included in the composite sector ʺOther or not specifiedʺ. The sector ʺDistributionʺ includes from now on small boutiques as well as supermarkets. It includes the commercial activity in itself but also investments in the walls (construction of shopping centres). The sector “Engineering & services to businesses”, now includes the operators of call centres (BPO, etc.) which had previously been linked to the telecommunications sector because of the proximity between infrastructures, telecoms services and downstream users sectors such as call centres.


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Index of figures and graphs Figure 1. UNCTAD data on FDI inflow by regional subset of destination

and MEDA share of total world FDI (UNCTAD‐WIR) ............................ 10 Figure 2. FDI inflows 2000‐07 for each MEDA country (UNCTAD‐WIR

for 2000‐2006, estimate for 2007) .................................................................. 11 Figure 3. Total FDI inflows and number of projects for MEDA 10

(UNCTAD vs ANIMA‐MIPO)...................................................................... 12 Figure 4. FDI performance of MEDA country in relation to population

and GDP ........................................................................................................... 13 Figure 5. Evolution of announced FDI flows to MEDA by region of

origin (ANIMA‐MIPO 2003‐07).................................................................... 14 Figure 6. Total number of FDI projects per region of origin (MIPO 03‐07)... 15 Figure 7. Case study: European aeronautics cluster facing a weak dollar .... 16 Figure 8. Number of projects and FDI flows by sector in 2007 (MIPO)......... 21 Figure 9. Seventeen projects above 1 billion EUR announced in 2007........... 22 Figure 10. Distribution of European FDI outside the EU, by block of

destination (EU Direct Foreign Investment Yearbook 2007) ................... 27 Figure 11. Relative contributions of the main FDI‐emitting regions in

MEDA (ANIMA‐MIPO 2003‐07) .................................................................. 29 Figure 12. Map of the main FDI flows cumulated over 5 years, by region

of origin and destination (ANIMA‐MIPO 2003‐07) .................................. 30 Figure 13. FDI from the Gulf by country of origin and destination

(ANIMA‐MIPO 2003‐07)................................................................................ 31 Figure 14. The 20 most important projects of the Gulf in the MEDA

region in 2007 (ANIMA‐MIPO).................................................................... 34 Figure 15. FDI flows per sectoral subset over 2003‐07 (ANIMA‐MIPO) ....... 37 Figure 16. Sectoral ranking (MIPO 2007) ............................................................ 38 Figure 17. Strong concentration of FDI flows on few sectors (MIPO 2007) .. 39 Figure 18. Total FDI by sector (ANIMA‐MIPO, 2003‐2007)............................. 39 Figure 19. Four rising stars in the Mediterranean ............................................. 40 Figure 20. Greater volatility in tourism and telecom........................................ 42 Figure 21. Average investment per project depending on the sector

(ANIMA‐MIPO 2003‐07)................................................................................ 43


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Figure 22. Direct job creation per sector (MIPO 2007) ...................................... 44 Figure 23. Average number of jobs created per project, according to the

sectors (ANIMA‐MIPO 2003‐ 07) ................................................................. 45 Figure 24. Eleven real estate projects above 500 million euros in 2007.......... 47 Figure 25. Top 5 of FDI projects in transport in 2007........................................ 49 Figure 26. Algeria, Libya and Syria, new tourism destinations (MIPO) ....... 50 Figure 27. Fever in Turkey: commercial real estate is booming...................... 51 Figure 28. The 12 most important projects in energy in 2007 (ANIMA‐

MIPO)................................................................................................................ 53 Figure 29. Metallurgy: four great projects in Algeria and Turkey in 2007

(ANIMA‐MIPO) .............................................................................................. 55 Figure 30. Distribution of FDI in metallurgy, by region of origin of the

investors (MIPO 2003‐07) .............................................................................. 55 Figure 31. Nine projects above 50 million euros in chemicals, plastics and

fertilisers in 2007 ............................................................................................. 56 Figure 32. New Assembly lines in Algeria, Jordan, Syria and Turkey .......... 59 Figure 33. The automobile equipment suppliers are interested in MEDA ... 60 Figure 34. Confirmed attractiveness of the Moroccan aeronautics cluster ... 61 Figure 35. Investment projects above 200 million euros in the banking

and insurance sector in 2007 ......................................................................... 63 Figure 36. The progressive opening of the Algerian financial sector

continues........................................................................................................... 64 Figure 37. Private banks and insurance companies multiply in Syria........... 64 Figure 38. Regional banking integration process continues ............................ 65 Figure 39. Purchases of financial broking companies in 2007 ......................... 67 Figure 40. Multiplication of FDI projects in software and data processing

in Tunisia.......................................................................................................... 68 Figure 41. FDI in software services and production in Morocco .................... 69 Figure 42. FDI projects in Turkey’s private health sector in 2007................... 71 Figure 43. Evolution of the flows of FDI by sub‐regions of destination

(ANIMA‐MIPO 2003‐2007)............................................................................ 72 Figure 44. Distribution of FDI projects by sub‐region of destination

(MIPO 2007) ..................................................................................................... 73


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Figure 45. Evolution of FDI flows to MEDA countries (MIPO 2003‐07)........ 73 Figure 46. The 26 major FDI‐emitting countries in the MEDA region

(ANIMA‐MIPO) .............................................................................................. 75 Figure 47. When India will wake up…................................................................ 77 Figure 48. The 6 sectors which attracted more than one billion euros of

FDI in Egypt in 2007 (ANIMA MIPO)......................................................... 79 Figure 49. Algeria: developing tourism to get over the hydrocarbon‐

based economy ................................................................................................ 83 Figure 50. The privatisation of the Algerian banks on hold… ........................ 83 Figure 51. Tourism remains a sure value for Morocco ..................................... 89

In April 2008, the Med‐alliance consortium led by ANIMA and formed by BusinessMed, Eurochambres, ASCAME, UNIDO, GTZ, Euroméditerranée, launched ʺInvest in Medʺ, an initiative cofinanced up to 75% by the European Commission..The project – implemented over 36 months and which will involve the 27 countries of the EU and 9 Mediterranean countries under the New Neighbourhood Policy (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria and Tunisia) – has the ambition of increasing the volume and the quality of investments flows, of partnerships and Euro‐Mediterranean trade flows with a view to contributing to the sustainable economic development of the region.

Foreign direct investment in MEDA in 2007: the shift SURVEY N°1/ July 2008

The most recent data on foreign direct investment (FDI) in the MEDA region (Mediterranean countries partners of the EU) confirm the integration of this area in economic globalisation. In a context of shifting dynamism between developed countries, often in relative decline, and emerging countries whose growth seems insatiable, the Mediterranean follows the same pattern as the rest of the world:

Over the past few years, the interest of Europe for its southern neighbours has not grown significantly. Europe remains a significant partner in two areas, the Maghreb and Turkey, but its positions are fragile in Machreck. European investors choose MEDA to locate projects that cannot be carried out any longer in an economically viable way in its own terrirtory (automobile, aeronautics, services). European champions also perceive the potential of the MEDA market (banks, tourism companies, or construction giants);

On the contrary, the South never seemed so eager to benefit from the many Mediterranean opportunities. The MEDA operators themselves are starting to invest in the other countries of their region. All dynamic emerging economies (and not only China and India) are represented in a region whose resources are better valued now. The champions of the South have a presentiment of the growing potential of MEDA as a production platform for the future Euromed market. The Gulf, with a third of the amounts to be invested, confirms, especially in the Machreck, its role as an economic “big brother” who could become an interesting partner of the historical godfather which is Europe.

The project of the Union for the Mediterranean comes at the right moment to provide new energy to a Euro‐Mediterranean partnership which probably lacked ambition and political support. Companies, the business community, the civil society can perhaps make this integration process a success given the difficulty of conceiving it only from a strictly political point of view.

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SURVEY N°1 / July 2008 Invest in the Mediterranean · Invest in the Mediterranean ... two areas, the Maghreb and Turkey, but its positions are fragile in ... recent study undertaken