foreign direct investment (fdi) in the meda region in 2003 · meda group of 12 partner countries of...
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Foreign directinvestment (FDI)
in the MEDA regionin 2003
ANIMA study n°6 / February 2004
Israël Sztejnhorn / Bénédict de Saint-Laurent
I n v e s t i n F r a n c e A g e n c y
Direct Foreign Investment (FDI) in the MEDA region in 2003
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References The Invest in France Agency (AFII) has been asked by the Commission of the European Communities to develop a « EuroMediterranean Network of Investment Promotion Agencies » (« ANIMA »). The identification n° of the contract is : ME8/B7-4100/IB/99/0304Authors: § Israël Sztejnhorn (consultant) and Bénédict de Saint-Laurent (AFII)
for the writing of the report § Dioline Dorvil, Soizic de Rengerve, Delphine Bréant, Stéphane
Jaffrin (AFII) for the identification of projects and the management of MIPO
§ Contribution of the Moroccan, Lebanese and Maltese IPA to the list of projects
© AFII-ANIMA 2004. Publication prohibited without the written permission of the AFII. All rights reservedISBN: 2-915719-01-2
Direct Foreign Investment (FDI) in the MEDA region in 2003
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AcronymsANIMA Euro-Mediterranean Network of Investment Promotion AgenciesIPA Investment Promotion AgencyFDI Foreign Direct Investment MEDA Group of 12 partner countries of the European Union:
Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Palestinian Authority, Syria, Tunisia, Turkey
MIPO Mediterranean Investment Project ObservatoryCEEC Central and Eastern European CountriesGDP Gross Domestic Product GNP Gross National ProductWIR World Investment Report
Direct Foreign Investment (FDI) in the MEDA region in 2003
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Direct Foreign Investment (FDI) in the MEDA region in 2003
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Table of contents
Executive summary : the MEDA region has attracted 275 major foreign direct investment projects in 2003 . . . . . . . . . 7
Sharp turnaround in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Considerable stakes for foreign investment . . . . . . . . . . . . . . . . . . . . . . . . . 8
1. The first detailed micro-economic appraisal of foreign investment in the MEDA region . . . . . . . . . . . . . . . . . . . . . .11
The approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11The stakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2. A new start for investment in MEDA in 2003 ? . . . . . . . 13The MIPO base 2003 : a large number of investment announcements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13The attractiveness of the MEDA region seems to be improving . . . 32Confidence rediscovered in the MEDA region? . . . . . . . . . . . . . . . . . 34Figures which seem to testify to a clear improvement in FDI . . . . . 35An indispensable tool for the promotion of investment in MEDA . 36
3. Detailed analysis of the MIPO results . . . . . . . . . . . . . . . 39The « average » project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Analysis by sub-region and country of destination . . . . . . . . . . . . . . 40Analysis by origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Intra-MEDA FDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Analysis by sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Analysis by type of enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46MEDA « power house » for certain sectors . . . . . . . . . . . . . . . . . . . . . 49The relocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Fore-runner signs of increased investment . . . . . . . . . . . . . . . . . . . . . 52Quality of the FDI projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
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4. Desirable improvements for future reports . . . . . . . . . . 55Interest of the MIPO observatory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Conditions for the success of the MIPO observatory . . . . . . . . . . . . . 56Proposals for the appraisals to follow . . . . . . . . . . . . . . . . . . . . . . . . . 57
5. Appendix 1. Comparison with the macro-economic results of UNCTAD (WIR) . . . . . . . . . . . . . . . . . . . . . . . . . . 616. Appendix 2. Some significant « success stories » . . . . . 63
Renault produces the « Mégane » in Turkey . . . . . . . . . . . . . . . . . . . . 63Integrated circuits manufactured in Tunisia . . . . . . . . . . . . . . . . . . . . 63Relocation : SQLI installs an offshore hub in Morocco . . . . . . . . . . . 64Orascom projets in Algeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Moody’s in Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Malaysian car assembly line in Syria . . . . . . . . . . . . . . . . . . . . . . . . . . 67A macro- tourist complex in Morocco . . . . . . . . . . . . . . . . . . . . . . . . . 68Tesco sets up shop in Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Carrefour targets Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Indian acrylic fibre plant in Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Technology transfer in Tunisia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7. Appendix 3. Methodological approach . . . . . . . . . . . . . 75Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Eventual complements from the MEDA IPAs . . . . . . . . . . . . . . . . . . . 76
Direct Foreign Investment (FDI) in the MEDA region in 2003
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Composed of 12 partners States of the European Union in the South and the East of the Mediterranean, the MEDA region has until now been the poor relation of international investment. Deserted by large numbers of the most competent members of its workforce, little considered by its own elite groups and domestic investors, victim of a disrupted geopolitical context, MEDA has in recent years received 3 to 4 times less foreign direct investment (FDI) than other emerging regions of the world with equal economic fundamentals.
Sharp turnaround in 2003This situation would at last appear to be developing positively, if the results of the MIPO (Mediterranean Investment Project Observatory), created by the AFII in the context of the project ANIMA are to be believed. 275 investment projects were announced in 2003, involving an injection of capital of more than 10 billion Euros and the creation of more than 25,000 jobs –indeed these figures only cover projects where the amount of investment or the numbers of jobs have been published, with the real total being considerably higher. These investments come from international « blue chip » companies, the most often European or American – with more than 50 of them having shown confidence in MEDA in 2003.
Executive summary : the MEDA region has attracted 275 major foreign direct investment projects in 2003
Direct Foreign Investment (FDI) in the MEDA region in 2003
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The MEDA market share, which despite 240 million inhabitants, receivd 3.5 times less FDI in 2002 than the eight countries of Central and Eastern Europe (CEEC) who are about to join the UE (Poland, Czech Republic, Hungary, etc., with 75 million inhabitants in all), would seem to have corrected itself in 2003: the difference with the CEEC countries may only be 1 to 2 times (data acquired in terms of the number of projects, but to be confirmed by the amount of FDI). What is probably more remarkable is the quality of the projects detected, increasingly often linked to the constitution of a MEDA power house – it is very obvious for the automotive industry, for example, – as well as the development of new sectors – such as information technology, call centres, the health industries, etc. The modernisation of the economic structures (a large number of large retail distribution projects), tourism and its corollaries (several projects involving new air liaisons), services to companies also accompany the more traditional sectors (textiles, agro-food, basic industries).
Considerable stakes for foreign investment
The information from MIPO (Mediterranean Investment Project Observatory), available on line at http://www.animaweb.org, reinforces the ANIMA network in its strategy of recovery for the MEDA region. -this strategy consists in helping countries to recover their whole attractiveness.The stakes are considerable. The difference in living standards (GDP per capita) is from 1 to 10 between the two shores of the Mediterranean (in 2001, respectively 2,195 and 21,682 US$ per capita). Such a difference exists nowhere else in the world (the Mexico-USA differential is only 1 to 7), and this is both the risk and challenge which concerns the two shores. Just how do the MEDA countries, most of which have limited budgetary
Direct Foreign Investment (FDI) in the MEDA region in 2003
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means, often allocated in priority to their « infrastructure » in the widest sense, make up this leeway. For several of them, FDI represents the major part of the gross capital formation. It also thus assumes a vital strategic importance, both as a vector of the modernisation of the economic and social fabric, – foreign companies often being used as models – and as an indispensable financial injection in the productive sector.
Executive summary
Direct Foreign Investment (FDI) in the MEDA region in 2003
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Direct Foreign Investment (FDI) in the MEDA region in 2003
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The approachSince 1st January 2003, the project ANIMA has been systematically cataloguing the announcements of investment projects in the MEDA1 region. The means used have been a combination of the indicators of the economic intelligence system of the AFII (Invest in France Agency) –based on the flow of main international economic and financial news-, information directly acquired by the ANIMA team, and the data transmitted by certain Investment Promotion Agencies (IPAs), partners of the ANIMA network.The base built in such a way, known as MIPO (Mediterranean Investment Project Observatory), provides the possibility of carrying out, for the first time, an annual appraisal of FDI (Foreign Direct Investment) flows in the MEDA region. This appraisal, which will hopefully be followed by numerous others, allows the characterisation of the investment market trends in the Mediterranean through a micro-economic approach, that of the projects identified (nature of the project, country of origin, of destination, sector concerned, type of investor) –while the only data available until now have been of a macro-economic nature (overall flows accounted for in the national accounts).
1.The first detailed micro-economic appraisal of foreign investment in the MEDA region
1 This region comprises 12 partners countries of the European Union: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Palestinian Authority, Syria, Tunisia, Turkey.
Direct Foreign Investment (FDI) in the MEDA region in 2003
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This report presents the main elements of the 2003 appraisal, compares the results with the macro-economic data and positions the performance of MEDA compared with other regions in direct competition, especially CEEC (the Central and Eastern European countries).
The stakesA fine understanding of the investment market in the MEDA region is especially necessary since the region undoubtedly suffers from an image deficit which puts off investors. Roughly speaking, when compared with the average of the emerging countries, MEDA receives 3 to 4 times less FDI than its economic fundamentals would appear to merit (population, market, GDP, income per capita, etc.). The political turbulence which undermines the region, the often negative perception held of Mediterraneans –judged to be better equipped for tourism or for trading than for industry-, the frequent confusion between Islam, Islamism and terrorism means that MEDA probably pays a heavy price: injections of capital that do not take place or which are postponed, missed development opportunities from the projects of foreign investors (which often represent a decisive part of gross capital formation).MIPO shows that this must and can change. In reality, many international corporations believe in MEDA or cannot allow themselves to ignore a market of 240 million inhabitants. For example, a Maghreban Valley, to bring to mind what is happening in Bangalore, is in the process of construction in the Maghreb in the domains of call centres, tele-computing, software development. The large European companies, conscious of the inexorable rise in costs in Eastern Europe, are starting to look in a Southerly direction.
Direct Foreign Investment (FDI) in the MEDA region in 2003
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The MIPO base 2003 : a large number of investment announcements The MIPO data base contains 275 foreign investment projects announced, started, decided, or envisaged during the year 2003 for all the countries of the MEDA region. The table below (Figure 1) lists all these projects on several pages, classified by country, and providing the essence of the information useful for the reader. This task requires the following methodological precisions:§ The information supplied has been cross-referenced – often using several announcements-, checked – plausibility, coherence-, and would appear in most cases to be very reliable. Many vague or badly defined projects have been rejected. Only those projects for which a minimum of information is available, an identified investor, his country of origin, the destination, the type of project, the sector, have been taken into account. The great majority of projects are accompanied by a detailed description;§ The only data omitted from or simplified in the table are those which are subject to copyright (integral text of the press release announcing the project, date), which might upset the investor or the IPA concerned (there are a few cases where the name of the company is known to ANIMA, but not mentioned), or where the presentation of the « geography » is complicated (in the case of projects which involve several countries – only the first country mentioned is listed) ;
2. A new start for investment in MEDA in 2003 ?
Direct Foreign Investment (FDI) in the MEDA region in 2003
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A new start for investment in MEDA in 2003 ?
§ In 66% of the cases, the information collected contains a quantitative element –either the amount of the investment or the number of jobs created – which reinforces credibility;§ The pre-projects (announcements made in the condtional tense for projects as yet not entirely confirmed) represent 28 recordings, that is 10 % of the total, and are mentioned in italics.
Despites the efforts made in the collection, this data base can obviously only be a default estimate of the investments announced or made in the MEDA region. In particular, many small and medium-sized projects probably slip through the « mesh of the net » which is rather on the large side (in MIPO, the average amount of FDI is around 100 million €2, which is considerable in a region where the GNP is on average one tenth of that of the EU).Despite these limits, the base obtained in this way, has even more interest since, to our knowledge, it is the first attempt at building a regional data base including clearly identified projects which are referenced in the international press, on internet and in the IPAs. The total number of investment announcements would appear to be relatively high, in a morose world economic context as signalled by world investment reports in recent years (WIR 2002 and WIR 2003). It is difficult to make comparisons between the figures in our study and those obtained by the more global methods of the WIR, but the two methods, which are complementary, should evolve in the same direction.
2 This average is known through excess. It is above all the large « physical » projects where the amount of the investment is announced in the media or on internet. It is rarely announced, for example, for those projects which consist in the opening of a representation office in one MEDA country or another. It is, however, probable that the research method adopted underestimates the investments made by the SME, which create more jobs
Direct Foreign Investment (FDI) in the MEDA region in 2003
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A new start for investment in MEDA in 2003 ?
Figure 1. Summary of the MIPO results 2003
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Algeria Castel France Building of a beer factory at Oued Tlelat
Agro-business
Algeria Scania Sweden Building of a new production plant for trucks
Car manufacturers or suppliers
Algeria Fiat Italy The company returns to Algeria with Ital Motor
Car manufacturers or suppliers
Algeria Daewoo USA Increase of Valeo activities and investments in Algeria
Car manufacturers or suppliers
Algeria MGE UPS Systems
France Leader in high availability power solutions consolidates its presence in Algeria by opening a subsidiary
Consulting and ser-vices to companies
Algeria Gide Loy-rette Nouel
France (Prospect) A French business lawyer firm considers opening an office in Algeria
Consulting and ser-vices to companies
Algeria Hikma Jordan Installation of a pharmaceutics plant and R&D unit
Drugs
Algeria Ceva Santé Animale
France A veterinary pharmaceutical leader opens a production center in Sidi Abdellah
Drugs 45 2,0
Algeria IBM USA Computer distribution in par-tnership with French company
Electric, electronic and medical hard-ware
Algeria CNPC China Building of a new petroleum refinery in Sahara
Energy 350
Algeria GE Oil & Gas
USA FE oil & Gas, GE PowerSystem subsidiary, has won a contract of €61 million
Energy 61
Algeria Autokraz Georgian Oil Co
Georgia Opening of a new commercial representation in 2003
Energy 3
Algeria FACT France An air conditioning company invests € 500,000 in Algeria
Furnishing and houseware
Algeria Vitra Sani-taire
Turkey The ceramics leader opens a commercial office in partnership with Samceram
Furnishing and houseware
Algeria Orascom Egypt Building of a cement factory at M’sila
Glass, wood, paper, minerals, ceramics
1200 173,9
Algeria Euro-crystal France Building of a factory in Annaba Glass, wood, paper, minerals, ceramics
20
Direct Foreign Investment (FDI) in the MEDA region in 2003
16 17
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Algeria Cimpor Portugal The Algerian government gives away 51% of the Meltah cement plant
Glass, wood, paper, minerals, ceramics
40 23
Algeria Seram France Seram creates 3 branches in Barcelona, Algiers and Houston
Mechanics and machinery
Algeria Société Géné-rale
France Extension of the Sogal network in Algeria
Other commercial, financial, service activities
Algeria Diagram France E-Banking subsidiary company to develop a remote banking activity
Other commercial, financial, service activities
Algeria Cetelec France New telecom customer after-sa-les centre in Algiers
Telecoms and inter-net operators
Algeria Orascom Egypt Orascom has invested USD1,1 bn in telecommunications in Algeria
Telecoms and inter-net operators
956,5
Algeria Orascom Egypt Orascom Telecom Algeria beco-mes an internet provider
Telecoms and inter-net operators
Algeria El Watania Kuweit 3rd cellphone license attributed to a Koweiti operator
Telecoms and inter-net operators
366,1
Algeria Dagris France Creation of a joint-venture for the development of Algerian cotton
Textile, clothing, luxury
Algeria Aigle Azur France Aigle Azur opens in October 2003 new Paris-Tamanrasset and Paris- Djanet routes
Transport, storage, construction, public works, water & utilities
Algeria Wilh. Wil-helmsen ASA
Norway Opening in Algeria of a shipping line office
Transport, storage, construction, public works, water & utilities
Algeria British Airways
UK (Prospect) Opening of a schedu-led line to Algiers in December 2003
Transport, storage, construction, public works, water & utilities
Algeria Compagnie Nationale Algérienne de Navigation
Others (Prospect) Privatisation and opening of the capital to foreign investors
Transport, storage, construction, public works, water & utilities
Algeria Ionics & Mitsui
USA Construction of a seawater desa-lination plant near Algiers under a build-own-operate contract
Transport, storage, construction, public works, water & utilities
195,7
Direct Foreign Investment (FDI) in the MEDA region in 2003
16 17
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Algeria Black an Veatch Africa
USA Construction of a seawater desa-lination plant in Arzew through a US-Algerian JV
Transport, storage, construction, public works, water & utilities
391,3
Cyprus GFI UK GFI, developer of security software, expands its operations in Cyprus
Data-processing, software and services
40
Cyprus Scancom Lebanon First private GSM license for the Lebanon-based Scancom group
Telecoms and inter-net operators
Egypt Chipita Inter-national
Greece (Prospect) The Greek number 1 agrobusiness company will create joint ventures in Egypt
Agro-business 4,7
Egypt Kraft Foods USA Kraft Foods enters the Egyptian market
Agro-business 100,6
Egypt Egypt Int’al Tobacco & Cigarettes
Jordan Agreement with Eastern Com-pany to produce cigarettes
Agro-business
Egypt IMPCO USA Creation of a joint venture with AFG for automotive engines
Car manufacturers or suppliers
Egypt GAZ Russie The Russian car manufacturer GAZ plans to open an assembly facility in Egypt in 2004
Car manufacturers or suppliers
Egypt UAZ Russie Russian motor-vehicle producer to open plants in Poland, Egypt and Ethiopia
Car manufacturers or suppliers
Egypt Kamaz Russie (Prospect) Installation of a car assembling plant
Car manufacturers or suppliers
Egypt BMW Germany Opening of an assembly plant Car manufacturers or suppliers
50,9
Egypt Hydro Agri Chili Creation of a joint venture, Misr Speciality Fertilizer Company, to produce liquid fertilizers
Chemistry, plas-turgy
Egypt Siemens Germany Control systems for a drug and petrochemical factory at Qena
Chemistry, plas-turgy
250
Egypt Zuari-Cham-bal
Inde Creation of a fertilizer factory Chemistry, plas-turgy
Egypt Moody’s USA Moody’s rating agency creates a JV with Finance and Banking Consultants International
Consulting and ser-vices to companies
4
Egypt Carrefour France Opening of a supermarket Distribution Egypt Diamons SA Switzerl-
andOpening of a site for production of telecom cables
Electric, electronic and medical hard-ware
Direct Foreign Investment (FDI) in the MEDA region in 2003
18 19
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Egypt BG Group UK British Gas will double its pro-duction capacity in Egypt
Energy
Egypt Jaako Poyry Group
Finland The company invests €2 m in a paper mill
Glass, wood, paper, minerals, ceramics
2
Egypt Lafarge France Opening of gypsum wall panel factory
Glass, wood, paper, minerals, ceramics
Egypt Lafarge France Lafarge and Titan enlarge their co-operation in Egypt
Glass, wood, paper, minerals, ceramics
Egypt Nugul Group
Jordan Paper fabric plant in Egypt Glass, wood, paper, minerals, ceramics
2
Egypt Birla Group Saudi Arabia
A new Saudi acrylic fiber factory in Egypt
Textile, clothing, luxury
1000 73,4
Egypt Pridesa Spain Construction of a seawater desalination plant in Egypt
Transport, storage, construction, public works, water & utilities
Israel Alstom France (Prospect) French companies enter in the Tel Aviv subway tender
Aeronautical, naval and railway equi-pment
1500
Israel Nestle Switzer-land
A new factory for frozen baked products
Agro-business
Israel Vilmorin Clause
France The tomato seed specialist takes control of Hazera Genetics
Biotechnologies 22,2
Israel Lundbeck Denmark Opening of a commercial repre-sentation
Biotechnologies
Israel Walt Disney Holding Cies
USA Shamrock Capital, the in-vestment arm of Walt Disney Holding, purchases20% of CMT Medical Technologies
Biotechnologies
Israel BioDelivery Sci-ences Int’al Inc (BDSI)
USA (Prospect) Creation of Biorazyme Ltd to develop formulations for left hand disease
Biotechnologies
Israel Procter & Gamble
USA (Prospect) Procter & Gamble will problably invest in Israel
Chemistry, plas-turgy
Israel Ravago Belgium Ravago invests 12 million euros in the building of a fire retardant plant
Chemistry, plas-turgy
100 12,5
Israel HP USA Opening of an ink factory at Kiryat Gat
Chemistry, plas-turgy
Israel Blue Pum-pin’s
USA Opening of a customer service office in Israel for a workforce optimisation company
Consulting and ser-vices to companies
Direct Foreign Investment (FDI) in the MEDA region in 2003
18 19
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Israel Veritas Software
USA The company completes the acquisition of Precise Software for 535 m euros
Data-processing, software and services
0 535
Israel Marvell Technology Group
USA Marvell Technology Group com-pletes the acquisition of Radlan Communications Group
Data-processing, software and services
44
Israel Carrefour France (Prospect) The hypermarket group will enter the Israeli market
Distribution
Israel Motorola USA Motorola Inc. chooses Israel to develop its new radar-based warning fence
Electric, electronic and medical hard-ware
Israel IBM USA Establishment of a new design centre in Israel that will employ an additional 40 engineers
Electric, electronic and medical hard-ware
40
Israel Juniper Networks
USA Creation of a subsidiary of the optic fiber company
Electronic compo-nents
Israel Nokia Finland Investment in Israeli Ezchip company
Electronic compo-nents
3,6
Israel Intel USA Extension of a processor plant to create new generation of chips (0,09 micron)
Electronic compo-nents
500
Israel Samsung South Korea
The Korean communications giant sets up a new development centre in Herzliya
Electronic ware
Israel Herley Industries
USA A Pennsylvania-based producer of microwave will extend its facilities in UK and Israel
Furnishing and houseware
Israel General Electric
USA General Electric increases its investment in GE Medical Sys-tems Israel for increasing its R&D capabilities
Mechanics and machinery
Israel Mul-T-Lock Sweden Mul-T-Lock will invest NIS 50 million in expanding its factories and its R&D division
Metals, work and recycling of metals
10
Israel Advent International
USA Advent International injects $30 million into Gemini Fund to cooperate on technology JVs
Other commercial, financial, service activities
26
Israel Cosmopo-litan
USA The monthly Cosmopolitan launches an Israeli edition
Other commercial, financial, service activities
Israel Translink Switzer-land
Joint venture with Cukierman to create a bank of businesses
Other commercial, financial, service activities
Direct Foreign Investment (FDI) in the MEDA region in 2003
20 21
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Israel D link Taiwan New office Telecoms and inter-net operators
15
Israel ITXC Corp USA The telecom operator opens a commercial office
Telecoms and inter-net operators
5
Israel Exel UK Creation of MPL, a joint venture between Zim Israel Navigation and Zeevi Holding
Transport, storage, construction, public works, water & utilities
Jordan Seabird Aviation
Australia Creation of a joint venture to pro-duce non-military surveillance aircraft
Aeronautical, naval and railway equi-pment
Jordan Safmarine South Africa
Opening a commercial office in Amman
Aeronautical, naval and railway equi-pment
10
Jordan Philip Morris USA New Malboro cigarette produc-tion plant
Agro-business
Jordan Land Rover UK Opening of an assembly plant in the strategic exportation area in Ma’an
Car manufacturers or suppliers
Jordan Shell Nether-lands
Construction of two new polyol blending facilities in Dubai and Aqaba (Jordan)
Chemistry, plas-turgy
Jordan Hikma USA (Prospect) The private branch of the World Bank grants a loan of USD15 m to the pharmaceutical group, Hikma
Drugs 15
Jordan Alcatel France The broadband leader wins a contract for ADSL platforms and commutators
Electronic compo-nents
Jordan Jordan Bromine Company
USA Jordan Bromine Company builds a new membrane chlorine plant
Glass, wood, paper, minerals, ceramics
Jordan Zag Plastics Israel Opening of a hydraulic engine factory
Mechanics and machinery
Jordan Visa USA Visa International opens a regio-nal representation in Amman
Other commercial, financial, service activities
10
Jordan Minnesota Middle East Trading
USA Taking advantage of the free trade zone agreements with the US, the company opens a repre-sentation in Amman
Other commercial, financial, service activities
Jordan Cerebrus UK New UK insurance HQ in Amman
Other commercial, financial, service activities
Direct Foreign Investment (FDI) in the MEDA region in 2003
20 21
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Jordan Morganti Group & Ondeo Degremont
USA Water pipeline, pumping stations and desalination plant to supply Amman via a BOT
Transport, storage, construction, public works, water & utilities
108,7
Lebanon Pinturas Monto
Spain Creation of a paint production factory
Chemistry, plas-turgy
Lebanon Computer Associates M.East
USA Opening of a software develop-ment agency in Beirut
Data-processing, software and services
10
Lebanon Metaforms Canada A Canadian firm locates its design & marketing activities in Beirut
Data-processing, software and services
Lebanon Tejari Others Launch in Lebanon of an e-pro-curement business for Middle-East companies
Data-processing, software and services
Lebanon Copeland Corp
USA The fridge & air conditioner company will hire 360 new staffs by 2005
Furnishing and houseware
360
Lebanon France Cellis France (Prospect) Privatisation of the Telecom operator envisaged in 2004
Telecoms and inter-net operators
Lebanon Fratelli Rossetti
Italy Opening of a shoe store in Beirut Textile, clothing, luxury
Lebanon Metropolitan City Center sal
United Arab Emirates
Opening of a resort Tourism, catering 250 74
Lebanon Sharikat Ikarat wa Abniah
Iraq Opening of a Hilton resort in Beirut
Tourism, catering 200 37
Lebanon Leisure Hill sal
Iraq Investment in Sinbad’s World (hotel and leisure park)
Tourism, catering 150 117
Lebanon Al Kharafi Kuweit Opening of a Sheraton 4 points resort
Tourism, catering
Lebanon Star Airlines France Star Airlines, subsidiary of Look Voyages, plans the opening of a new route to Beirut in Dec. 2003
Transport, storage, construction, public works, water & utilities
Malta AC Motors USA R&D automotive centre created in Malta
Car manufacturers or suppliers
Malta Hotset Heizpatr. & Zubehoer
Germany Opening of an electric equipment factory for industrial use
Electric, electronic and medical hard-ware
Malta Toly Pro-ducts
Germany Opening of a packaging factory for luxury products
Textile, clothing, luxury
1,21
Direct Foreign Investment (FDI) in the MEDA region in 2003
22 23
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Marcopolo Brazil (Prospect) Setting-up of a truck manufacturing plant
Aeronautical, naval and railway equi-pment
Morocco Thales et Sagem
France (Prospect) Tender for mili-tary electronics industrialists to modernize the Morrocan «Mirages F1»
Aeronautical, naval and railway equi-pment
200
Morocco Souriau France Assembly of connectors intended for the manufacture of Airbus aircraft
Aeronautical, naval and railway equi-pment
90 14,0
Morocco Altadis France (Prospect) Altadis to make an offer to take the control of the Spanish tobacco company
Agro-business
Morocco Cobega Spain Cobega spends USD 73 million for its 3rd bottling plant in Morocco
Agro-business 63,5
Morocco Gill Gomez Spain The food preservation company just opened a new production plant
Agro-business
Morocco Penas Spain The Penas cannery enters North African market
Agro-business
Morocco Savola Saudi Arabia
Opening of a vegetable oil factory
Agro-business 10,7
Morocco Murgaca Spain New sheep slaughter-house in Casablanca
Agro-business 22
Morocco Indumix Spain Creation of a nutrition expertise office for milk cow farmers, then installation of a plant
Agro-business
Morocco Mediterra-nean Fruit Company
Italy European commercial office in Morocco for fruit produces
Agro-business
Morocco Unknown (Food Co)
Saudi Arabia
(Prospect) Manufacturing unit of aerated beverages, dairy pro-ducts and oils
Agro-business 360 23,9
Morocco Renault France Renault buys Somaca to produce a cheap car by the beginning of 2005
Car manufacturers or suppliers
Morocco Prevent Slovakia A car seat manufacturer will open a new factory in Casablanca by the end 2003
Car manufacturers or suppliers
13
Morocco Valeo France Opening of a new plant for auto-motive spare parts in Bouznika
Car manufacturers or suppliers
1500
Morocco EMDEP Morocco
Spain Manufacturing unit of automo-bile beams of cables in Tangier
Car manufacturers or suppliers
25 4,7
Direct Foreign Investment (FDI) in the MEDA region in 2003
22 23
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Sunviauto France Manufacture of caps for automo-bile seats
Car manufacturers or suppliers
200 41,0
Morocco EC2M France Manufacturing unit of automo-bile components in Tangier
Car manufacturers or suppliers
30 10,2
Morocco Plasticos Ferro
Spain Building of a water line factory in Casablanca
Chemistry, plas-turgy
7,2
Morocco Cegos France Creation of a subsidiary of the training company
Consulting and ser-vices to companies
Morocco AFT-Iftim France AFT-Iftim opens a training centre in Morocco
Consulting and ser-vices to companies
Morocco Gide Loy-rette Nouel
France New offices in Morocco and Algeria
Consulting and ser-vices to companies
10
Morocco Young & Rubicam
USA Opening of a new advertising agency
Consulting and ser-vices to companies
5
Morocco Presse+ France Opening of a branch in Casa-blanca
Consulting and ser-vices to companies
Morocco SQLI France SQLI installs a development platform in Morocco
Data-processing, software and services
50
Morocco Tech Access / Sun
USA Opening of a regional office in partnership with Sun Micro-systems
Data-processing, software and services
Morocco Hyperburo France Hyperburo opens its first foreign franchise in Casablanca
Distribution
Morocco Metro Germany New supermarket opening in Marrakech
Distribution 13,9
Morocco Financière de la Motte
France Creation of a distribution branch in Morocco
Distribution
Morocco Mr Bricolage France Joint-venture with Brico Invest Sa to open 5 salepoints in 5 years, the 1st in 2004 in Casablanca
Distribution 600 22,9
Morocco Mega-Mall Sofia
United Arab Emirates
Project «trade and leisure» in Rabat
Distribution 400 20,2
Morocco Vinci France Project of trade and distribution in Casablanca
Distribution 300 40,2
Morocco Eurinvest Luxemburg (Prospect) Do-it-yourself, decora-tion and gardening shops
Distribution 300 280,0
Morocco CSMD Switzer-land
(Prospect) Shops in the principal cities of Morocco
Distribution 500 18,4
Direct Foreign Investment (FDI) in the MEDA region in 2003
24 25
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Hoffman Switzer-land
Opening of a factory in Casa-blanca
Drugs
Morocco Sanofi-Syn-thelabo
France Sanofi invests in the production of drugs in Casablanca
Drugs 21,2
Morocco Ceva Santé Animale
France A veterinary pharmaceutical leader opens a dispatch center in Casablanca and production plant in Rabat
Drugs
Morocco Maralec France Unit of sheet-iron works and integration of electronic sets in Casablanca
Electric, electronic and medical hard-ware
40 4,4
Morocco China Moroccan Meters
France Manufacture of electronic meters in Casablanca
Electric, electronic and medical hard-ware
161 44,3
Morocco STMicro-electronics
Italy New design and software deve-lopment in Rabat
Electronic compo-nents
500 100,0
Morocco PSI Electro-nics
France Research and development in electronics in Rabat
Electronic compo-nents
250
Morocco Lear USA Production of cable harnesses Electronic compo-nents
1 500 200,0
Morocco Apex-BP Solar
France Apex-BP Solar installs for ONE 4,000 photovoltaic systems in Morocco
Energy
Morocco Energie Electrique de Tahaddart
Germany Production of electricity in the combined cycle power station of Tahaddart in Tangier
Energy 237,2
Morocco Cimpor Portugal Increase in the output of the cement factory Asment Temara
Glass, wood, paper, minerals, ceramics
40 27,6
Morocco Holcim Maroc
France Production of cement in Fes, Oujda, Nador
Glass, wood, paper, minerals, ceramics
23 164,8
Morocco MT Plastic Nether-lands
Investment in waste recycling in Kenitra
Metals, work and recycling of metals
14 1,2
Morocco Impact Publishing
UK Superbrands company launches a branding promotion office
Other commercial, financial, service activities
Morocco Access Télé-services
France New call center in Rabat Telecoms and inter-net operators
100
Morocco Vivendi Universal
France Vivendi takes control of Morocco Telecom
Telecoms and inter-net operators
0
Morocco Le Terrain France Creation of a call center in Rabat Telecoms and inter-net operators
60
Morocco Cofimag France IT project Deltacall in Casablanca Telecoms and inter-net operators
120
Direct Foreign Investment (FDI) in the MEDA region in 2003
24 25
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Unknown (PC manu-facturer)
USA (Prospect) Call center for a pro-ducer of micro-computers
Telecoms and inter-net operators
800 0,0
Morocco Alexon UK Building of a new factory Textile, clothing, luxury
Morocco Dewhirst UK Opening of a fourth textile factory
Textile, clothing, luxury
Morocco Bulgari Italy Creation of a jewellery shop in Casablanca
Textile, clothing, luxury
10
Morocco Clayeux France Creation of a franchise in Morocco
Textile, clothing, luxury
Morocco Staro Bulgaria (Prospect) Leather production unit in Tunisia or Morocco
Textile, clothing, luxury
Morocco Solano Atlantic
Spain Manufacturing unit of safety and sport shoes, climbing boots
Textile, clothing, luxury
311 28,6
Morocco Capdevila Spain Garment industry in Tangier Textile, clothing, luxury
100 9,2
Morocco Moham-me-dia Shoes
Spain Manufacture of shoe stems and integration of a chain of shoe production in Mohammedia
Textile, clothing, luxury
80 7,4
Morocco Aksal Group Zara
Spain A Spanish-Canadian JV invests in apparel industry
Textile, clothing, luxury
200 20,1
Morocco Casport France Garment industry for sport, work and military uniforms
Textile, clothing, luxury
23 2,1
Morocco Caulliez Maroc
France Cotton-spinning unit in Fes Textile, clothing, luxury
45 4,1
Morocco Blue Star Apparel
Hong-Kong
Hong-kong investment in the garment industry in Casablanca
Textile, clothing, luxury
284 26,1
Morocco Classical & Casual Clothing
France Manufacturing unit of garments in Tangier
Textile, clothing, luxury
40 3,7
Morocco Thirteen AMP Mo-rocco
UK Unit of clothes industry in Sale Textile, clothing, luxury
550 50,6
Morocco Vayani UK Women apparel unit in Moham-media
Textile, clothing, luxury
70 6,4
Morocco TUI Germany (Prospect) TUI- Nouvelles Frontieres considers investing in Morocco
Tourism, catering 0
Morocco FADESA Spain Creation of a tourist mega-resort with 8 hotels
Tourism, catering 8000 1500
Morocco Ghantoute United Arab Emirates
A company from UAE invests in tourism in Marrakech
Tourism, catering 150 20,2
Direct Foreign Investment (FDI) in the MEDA region in 2003
26 27
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Britannic Hotels Company
UK Millenium Palace Hotel in Agadir
Tourism, catering 300 46,0
Morocco CDG France Creation of a holiday resort in Marrakech
Tourism, catering
Morocco AGA Founty Invest
Germany Project Thomas Cook In Agadir Tourism, catering 275 25,8
Morocco ABS Hôtel Properties Ltd
United Arab Emirates
Project of hotel in Marrakech by ABS Hotel Properties Limited Morocco
Tourism, catering 750 63,5
Morocco Hercules Int’al Sports Tanger
United Arab Emirates
Project HIST In Tangier Tourism, catering 100 18,7
Morocco Banque Populaire du Val de France
France The French Banque Populaire invests in Marrakech Country Club
Tourism, catering 120 37,2
Morocco Accor France (Prospect) The Accor group launches the restoration of the Jamai Palace in Fes
Tourism, catering
Morocco Fram France The tour operator Fram invests in hotels in Ouarzazate and Zagora
Tourism, catering 750 49,7
Morocco Lucien Barrière
France The group Lucien Barrière in-vests in the seraglio of Marrakech
Tourism, catering 200 36,8
Morocco Groupe Tikida
France Tourist project of Tikida Beach, Garden Dunes
Tourism, catering 1 010 81,0
Morocco Ettore Bianchi
Italy Project of Luna Rossa hotel in Nador
Tourism, catering 450 25,9
Morocco Liwa Int’al Kuweit Extension of the Sheraton hotels in Marrakech and Fes
Tourism, catering 18,4
Morocco Consortium Maroco- Koweïtien de Développt.
Kuweit (Prospect) Creation of hotel units in Casablanca, Rabat, Marrakech, Safi, Khouribga
Tourism, catering 600 18,4
Morocco Soipa Italy Building of a new yachting harbour in Asilah
Transport, storage, construction, public works, water & utilities
49,5
Morocco Corsair France (Prospect) Corsair, plans the opening of new routes from Paris to Marrakech and Fes
Transport, storage, construction, public works, water & utilities
Direct Foreign Investment (FDI) in the MEDA region in 2003
26 27
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Morocco Bouygues France Bouygues wins a contract for the building of the Tanger-Méditer-ranée harbour
Transport, storage, construction, public works, water & utilities
Morocco Fundi-ciones Caetano
Spain Opening of a joint venture in Tangiers
Transport, storage, construction, public works, water & utilities
9
Morocco Matebat France Opening of a subsidiary for hiring of cranes in Casablanca
Transport, storage, construction, public works, water & utilities
Others Alpan Turkey (Prospect) Market expansion for the profiled aluminium producer
Metals, work and recycling of metals
Palestine Authority
Pita USA Launch of an IT nursery Data-processing, software and services
2,4
Palestine Authority
Plaza Shop-ping Center
USA Construction of a 2000 sq. m. commercial mall (Plaza Shop-ping Center)
Distribution 8
Syria Usine d’huile d’olive
Saudi Arabia
Building of an olive oil factory Agro-business
Syria Proton Malaysia Malaysian automaker Proton plans to assemble cars in Syria
Car manufacturers or suppliers
Syria Fujiaire Malaysia The air-conditioner maker from Thailand enters the Syrian, Egyp-tian and Iraquian markets*
Furnishing and houseware
Syria Four Seasons Hotel
Lebanon Opening of a Four Seasons Hotel in Damascus
Tourism, catering 100
Tunisia ProMetic Canada Minority equity investment and transfer of technology in a new Tunisian company
Biotechnologies 38,6
Tunisia Roullier France Building of a phosphate factory in Gabes
Chemistry, plas-turgy
Tunisia Plasti-valoire France Plastivaloire creates a joint-venture for houseware plastics in Sousse
Chemistry, plas-turgy
Tunisia Sogec France Opening of an office of marke-ting consulting and promotion actions
Consulting and ser-vices to companies
4
Tunisia Apem France The electronics group Apem relocates from France to Tunisie
Electronic compo-nents
Direct Foreign Investment (FDI) in the MEDA region in 2003
28 29
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Tunisia Ferraz Shaw-mut
France Tunisia hosts the electrical components production after relocation from Europe
Electronic compo-nents
Tunisia STMicroelec-tronics
Italy Creation of a Tunisian center of micro-electronic components
Electronic compo-nents
500
Tunisia Bouyer France A French sound system company relocates in Tunisia
Electronic ware
Tunisia BG Group UK BG group obtains the authority agreement to build the Barca electric plant in Sfax
Energy
Tunisia Société mixte Tunisie-Lybie
Libya Creation of a company to trans-port petroleum products
Energy
Tunisia Calgary Centurion
Canada Centurion and Petro-Canada sign agreement to explore Mellita permit in Tunisia
Energy 11,7
Tunisia Caterpillar Power & Calgary Centurion
USA Start of operations for a 27-MW power generation plant in Zarzis
Energy
Tunisia Secil Portugal Secil will invest 28 m Euros to extend its factory to increase cement production by one mil-lion tons
Glass, wood, paper, minerals, ceramics
28,0
Tunisia Apsys France The commercial zone specialist enters Tunisia
Other commercial, financial, service activities
Tunisia NOOS France (Prospect) Teleperformance tries to convince Noos and Orange to open two new call centres
Telecoms and inter-net operators
Tunisia Futur Tele-com
France (Prospect) Futur Télécom wants to expand overseas
Telecoms and inter-net operators
Tunisia Orascom Egypt The mobile phone service has reached more than 100 000 per-sons after one month
Telecoms and inter-net operators
Tunisia Rouleau-Guichard
France The underpants manufacturer relocates its factories in Tunisia and Romania
Textile, clothing, luxury
500
Tunisia Elvstrom Sails
Denmark A new site in Bizerte for the series’s veils
Textile, clothing, luxury
Tunisia Benetton Italy Creation of textile factory in Monastir
Textile, clothing, luxury
13,5
Tunisia Van de Velde Belgium A Belgian garment company invests € 2.5m in its Tunisian branch
Textile, clothing, luxury
400 2,5
Direct Foreign Investment (FDI) in the MEDA region in 2003
28 29
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Tunisia Accor France Building of a 250 bedroom hotel Tourism, catering
Tunisia Compass UK The n°1 catering company wins the contract to modernize Tuni-sian airport restaurants
Tourism, catering
Tunisia Esdi France Esdi European Line opens an office in Tunisia
Transport, storage, construction, public works, water & utilities
5
Tunisia ZI off-shore Italy (Prospect) Creation of an off-shore industrial zone in Tunisia
Transport, storage, construction, public works, water & utilities
Tunisia Frans Maas Nether-lands
Establishment of a transport agency in Tunisia
Transport, storage, construction, public works, water & utilities
Turkey Hamburg Sud Turkey
Germany Opening of 3 offices in Istanbul, Izmir, Mersin to manage marke-ting and ship logistics
Aeronautical, naval and railway equi-pment
Turkey Unknown/ Inconnu
Others (Prospect) Privatisation of the Turkish tobacco company Tekel
Agro-business
Turkey Amcor White Cap
Australia Building of a new factory at Dudullu to take place of the Istanbul one
Agro-business
Turkey Haribo Germany Construction of a new sweet factory
Agro-business
Turkey Kornet Russia Establishment of a production factory for champagne and wines in Kilis
Agro-business
Turkey Imperial Tobacco
UK The 4th world producer of to-bacco is close to opening a new manufacturing unit
Agro-business
Turkey Mayr-Meln-hof Graphia
Germany Creation of a cigarette packaging plant in Izmir
Agro-business
Turkey Toyota Japan Increase in capacity for the production of some new Toyota Corolla models
Car manufacturers or suppliers
Turkey Bosch Germany Bosch will invest 182 m Euros in Turkey
Car manufacturers or suppliers
182
Turkey Hyundai South Korea
Opening of a new center of pro-duction for Hyundai Accent
Car manufacturers or suppliers
Turkey Man Germany Man is on the verge of investing 19,6 m Euros to build a bus production line
Car manufacturers or suppliers
19,6
Direct Foreign Investment (FDI) in the MEDA region in 2003
30 31
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Turkey Renault France Renault launches its new Megane production in Turkey
Car manufacturers or suppliers
200
Turkey Denso Japan Building of a new factory in Istanbul
Car manufacturers or suppliers
Turkey Innova-tive Systems Europe
Germany Construction of a new factory in Aksaray
Car manufacturers or suppliers
Turkey Federal Mogul & Teikoku Piston King
Others Joint venture for an automotive spare parts plant
Car manufacturers or suppliers
Turkey Mercedes Germany New investment in the Turkish factory for truck production
Car manufacturers or suppliers
50
Turkey Bayer Switzer-land
Investment of US$2m in a center of storage and distribution of chemicals for agricultural sector
Chemistry, plas-turgy
1,7
Turkey Direct Parcel Distribution
France DPD starts a new postage center Consulting and servi-ces to companies
Turkey John Sey-mour Asso-ciates
UK The training company opens a new office
Consulting and ser-vices to companies
5
Turkey TUKA group USA The TUKAgroup announces the opening of offices in Turkey
Consulting and ser-vices to companies
Turkey Geopost France Creation of an international parcel shipping company
Consulting and ser-vices to companies
Turkey Gemplus France Partnership Gemplus/Tecknoloji Holding Group to offer banks EMV card personalisation solution
Data-processing, software and services
1
Turkey Intralot Greece Creation of a new game compa-ny through alternative networks (mobile phones, internet…)
Data-processing, software and services
Turkey Tesco UK The first UK food distributor buys a chain of Turkish hyper-markets
Distribution
Turkey Starbucks Coffee Int’al
USA Opening of a 4th café store Distribution 5
Turkey Tibbett & Britten
UK Joint venture for Tibbett & Britten in Turkey
Distribution
Turkey (Unknown) Pharma-ceutics
Greece Relocation of pharmaceutics production in Turkey
Drugs
Direct Foreign Investment (FDI) in the MEDA region in 2003
30 31
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Turkey Novartis Switzer-land
Installation of a pharmaceutics plant inTurkey
Drugs 64,3
Turkey Merloni TermoSanitari
Italy (Prospect) Merloni TermoSanitari plans to start heater production in Turkey within 2 years
Electric, electronic and medical hard-ware
Turkey Aquaria Spain Aquaria, firm specialized in water pool production and distribution, is opening a factory in Turkey
Electric, electronic and medical hard-ware
Turkey Fagor Spain New plant producing freezers for catering and hotel sectors
Electric, electronic and medical hard-ware
75 7
Turkey Copreci Spain Copreci, Spanish maufacturer of components for houseware equipment invests € 2,5 million in Turkey
Electronic compo-nents
Turkey Iranian Gas Company
Iran Creation of a subsidiary com-pany and signature of a 25 year agreement
Energy
Turkey Bakou-Cehyan Pipeline
Others Construction of the Bakou-Ce-hyan pipeline by aconsortium
Energy 25,5
Turkey Simon Spain (Prospect) Opening within the 2 next years of a manufacturing plant of small electronic ap-pliances
Furnishing and houseware
24
Turkey Colorificio Spain The enamel producer for the ceramic industry enters new emerging markets
Glass, wood, paper, minerals, ceramics
41
Turkey Lunan Paper China Construction of a paper mill (€84,6m)
Glass, wood, paper, minerals, ceramics
Turkey Arcelor France Arcelor and Erdemir open a new packaging plant and create a common holding
Metals, work and recycling of metals
Turkey Lufthansa Germany Establishment of a call centre in Istanbul
Telecoms and inter-net operators
Turkey VF Corp USA The American firm launches its clothes factory in the west of Turkey
Textile, clothing, luxury
400 15
Turkey Hugo Boss Germany Hugo Boss builds a new factory in Turkey
Textile, clothing, luxury
Turkey Adria UK Installation of a new textile plant Textile, clothing, luxury
Direct Foreign Investment (FDI) in the MEDA region in 2003
32 33
A new start for investment in MEDA in 2003 ?
Welcoming country
Company / Investor
Origin Project / News title in English Sector Jobs created
FDI (€m)
Turkey EasyLink USA EasyLink opens a sales office in Istanbul, Turkey
Transport, storage, construction, public works, water & utilitiesAverage value 339 103Total 26 792 10 610
The attractiveness of the MEDA region seems to be improving
With the help of the European observatory developed by AFII – which covers thirty or so countries-, it is possible to make a comparison of performances with a region in direct competition –the countries of Central and Eastern Europe (CEEC) and especially with the 8 countries joining the EU in May 2004.
Figure 2. Comparison of the numbers of FDI projects for MEDA, the EU and the CEECin 2003(Sources : AFII, European Observatory & MIPO)
EU-15 Projects CEEC-8 Proj. Other Eur. Proj. MEDA-12 Projects
UK 282 Hungary 130 Romania 78 Morocco 89
France 292 Czech Rep. 130 Switzer-land 66 Turkey 43
Germany 185 Poland 79 Bulgaria 48 Algeria 31
Spain 266 Slovakia 32 Europe 42 Israel 28
Belgium 73 Estonia 19 Norway 9 Tunisia 26
Netherlands 70 Lithuania 17 Iceland 3 Egypt 21
Italy 72 Lavtia 9 Croatia 1 Jordan 13
Ireland 86 Slovenia 4 Ukrain 1 Lebanon 12
Sweden 56 Syria 4
Portugal 32 Malta 3
Denmark 32 Palestinian A. 2
Austria 16 Cyprus 2
Greece 6 Other MEDA 1
Direct Foreign Investment (FDI) in the MEDA region in 2003
32 33
A new start for investment in MEDA in 2003 ?
Finland 21
Luxemburg 10
Total UE-15 1499 Total CEEC 420 Other Eur. 248 Total MEDA 275
Despite strong variations in the amounts of FDI in the emerging countries, it would seem (Figure 3) that the MEDA share of the market, which had fallen to a low level in 2002, has increased considerably in 2003. This should be confirmed in September 2004 on the macro-economic level by the UNCTAD (WIR 2004) world investment report.
Figure 3. An increase in the relative share of MEDA ? Comparison MIPO /WIR between 2002 and 2003Central and Eastern Europe MEDA-12 MEDA Share
Number of FDI projects 2003 451 Number of FDI projects 2003 275 38%
Number of FDI projects 2002 420 Number of FDI projects 2002 (1) 60 13%
Average amount per project detected (€m)
51 Average amount per project detected (€m)
103 -
FDI flows in 2002, US$mof which:
21 604 FDI flows in 2002, US$mof which:
6147 22%
Czech Republic 9 319 Algeria 1065Estonia 307 Cyprus 297Hungary 854 Egypt 647Latvia 396 Israel 1648Lithuania 732 Jordan 56Poland 4 119 Lebanon 257Slovakia 4 012 Malta -375Slovenia 1 865 Morocco 428
(1) estimate based on the average FDI amount 2003
Palestinian A. 41Syria 225Tunisia 821Turkey 1037
Direct Foreign Investment (FDI) in the MEDA region in 2003
34 35
A new start for investment in MEDA in 2003 ?
In terms of number of 2003 projects, as observed by a common tool (MIPO and the AFII pan-European AFII observatory), the MEDA region represents, more or less, one third of the CEEC region (eight continental countries about to join the EU). The figure of 38% is in fact slightly « inflated » by the presence of around forty projects contributed directly by Morocco (see below). This part of the market (one third) is greater than that provided by the MEDA in FDI in 2002 (22%, according to the WIR/UNCTAD report). It also very largely exceeds that given by a very (fragile) extrapolation in terms of numbers of projects in 2002 (where MIPO did not yet exist), that is 13%. All these figures remain to be confirmed, in the knowledge that it is difficult to compare market share in numbers of projects, amounts and numbers of jobs created – which is the hope for the appraisal from 2004 onwards-. A comparison of WIR/MIPO results is provided in Appendix 1.
Confidence rediscovered in the MEDA region? Despite the defavourable economic situation for investments at world level, the MIPO data base, without pretending to be overly complete, did enable the listing of a large number of foreign investment projects, which are remarkable for their variety and their origins.An examination of the investments made in 2003 helps to highlight several encouraging signs:§ some very large multinational companies (MNCs) participate in the investment effort in the region, in the context of their long term strategies: several automotive firms of various nationalities, several agro-food, chemical, pharmaceutical and new technology companies;§ these investments are made after in-depth market surveys and profitability studies; implemented within the
Direct Foreign Investment (FDI) in the MEDA region in 2003
34 35
A new start for investment in MEDA in 2003 ?
context of strategies defined well in advance, and these projects have a effect of encouraging other international businesses and even local companies;§ the reasons for which the large companies locate here are both for the potential outlets (expanding markets) and the existence of comparative advantages (low labour costs as a priority, as well as the physical proximity of the European market) ;§ the phenomenon of the relocation of European industries would seem to be accelerating to the benefit of the MEDA countries, which compete in this domain with the Asian countries; the detailed description of the investment projects shows the important part taken by the relocation of labour-intensive industries (automobile constructors and equipment manaufacturers, call centres, textiles, as well as computing or pharmacy);§ the spill-over effects of investments signalled (in terms of sub-contracting, the propagation of know-how, of training needs to be satisfied) are especially important in a region globally under-industrialised;§ an examination of the list of projects shows a great diversity of investments on the sectoral level: the traditional sectors are also present and well-placed (agro-food, textiles, automobiles), as well as the cutting edge sectors (telecommunications, computing, biotechnologies...).
A series of meaningful « success stories» is to be found in Appendix 2.
Figures which seem to testify to a clear improvement in FDIIt would therefore seem that after the low ebb of 2002, where foreign investment was weak throughout the world, and
Direct Foreign Investment (FDI) in the MEDA region in 2003
36 37
A new start for investment in MEDA in 2003 ?
catastrophic in MEDA (6.15 billion US$, against twelve or so in 2001), the region may have started to come out of its decline. This rise in interest has been obvious throughout 2003, with a good number of announcements at the end of the year.Although the amount of the investment is only given in 37 % of cases, the sum in absolute value of FDI identified in MIPO 2003 exceeds 10 billion Euros (exactly 10.610 million €, that is 12.201 million US$ -a figure analoguous to that for the whole of the FDI in 2001). This total should be taken carefully: (i) it is possible that certain projects present in the base correspond to the existing « stock », and not to the 2003 flow; (ii) the figures indicated in the agency releases for the same project are quite variable and may incorporate a part of supplies (and not « pure FDI ») ; (iii) no extrapolation has been attempted, for the amounts known probably correspond to the largest projects.In employment terms, more than 26,000 jobs would have been created in absolute terms by the FDI of 2003 where the personnel content is known (29% of cases). After extrapolation, this would give more than 100,000 jobs created in 2003, but an extrapolation of this sort is also difficult to sustain (the figures for jobs created are probably accentuated especially in the case of the largest projects).
An indispensable tool for the promotion of investment in MEDAThe MIPO data base presented here represents an initial and hopefully convincing attempt, to « situate » the attractiveness of the MEDA region, as a whole, vis à vis the international « business » community. It is already accepted that this task will be repeated each year within the
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A new start for investment in MEDA in 2003 ?
framework of the ANIMA network and its eventual follow-ups, with reinforced means. The data concerning MIPO may be consulted on line (in simplified form) for the year 2004 at http://www.animaweb.org.Thus the tool that has been developed, should enable the IPAs of the partner countries to improve their procedures and increase their efficiency:§ an objective evaluation of the overall performance of the region is possible, this will enable the necessary corrections and complements in terms of investment promotion to be made;§ this « benchmarking » is even to be envisaged between countries when the base has been sufficiently enlarged and stabilised, particularly with a homogeneous contribution from the different IPAs concerned;§ cooperation between IPAs of the MEDA region will be encouraged by the availability of common information;§ MIPO facilitates the promotion of certain particularly representative projects, or those which the IPAs wish to highlight (« success stories ») ;§ Increasingly reliable and operational statistical information will be available for use in specific studies and analyses which are likely to interest a particular IPA or a given sector.
Several private or institutional partners have already presented themselves to propose their cooperation with MIPO (data exchange, access to detailed data, publication). For the moment, the ANIMA network has followed up no proposal, preferring to await the initial evaluation of the 2003 base by the IPAs concerned – which will doubtless criticise certain insufficiencies, especially for the less well represented countries…
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In Appendix 3, a note on the methodological questions posed by the observatory is to be found.
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The « average » project In the actual state of knowledge, the « average project » listed in MIPO 2003 is an investment coming from Western Europe (France, Spain, Great Britain, Germany) or from the United States. The countries which found favour with the investors in 2003 are Morocco and Turkey, followed by Algeria, Israel, Tunisia and Egypt. Morocco is over-represented due to around forty projects which were provided by the corresponding IPA (Direction des Investissements), but which were not covered by international press releases; but this country was in the lead even before the introduction of these projects.The beneficiary sectors are fairly diversified: in the lead and almost equal come textiles, automobile construction, tourism and agro-food.The average amount of the investment (known in 37% of the cases) is 103 million € (ranging between 1 million and 1.5 billion €).The average number of jobs created (known in 29% of the cases) is around 340 (maximum: 8,000 jobs for the Saidia tourist complex in Morocco). The figures quoted in this domain are often rather unreliable, with estimates at times going from simple to double for the same project depending on the source.
3. Detailed analysis of the MIPO results
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Analysis by sub-region and country of destinationThe countries of the MEDA region present common features (cultural, climatic, demographic, geopolitical). They also present a strong diversity in terms of economic and technological development. The assets and the handicaps of the MEDA countries are also at the same time similar and highly diversified. These a priori contradictory aspects can be explained by the fact that the MEDA countries are at the same time « competitors » and « partners » within sub-regional groupings.An analysis of investments by sub-region of destination shows the predominance of the Maghreb in 2003:§ Maghreb (Algeria, Tunisia, Morocco) : 146 projects (53 %) ;§ Machrek (Egypt, Jordan, Palestine, Syria, Lebanon) : 52 projects (19 %) ;§ Other MEDA countries (Cyprus, Israel, Malta, Turkey) : 77 projects (28 %).
Figure 4. Sub-region of destination of FDI projects in 2003 (MIPO)
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Detailed analysis of the MIPO results
This predominance exists even when the investment projects identified by the Investment Directorate of Morocco (DI) are not taken into account – the latter having directly provided 43 projects chosen out of 89- (cf. Figure 5). However, the relative under-representation of the Machrek is perhaps due to the gradual rise in efficiency of the observatory which initially gave greater advantage to the information available in English, French and in German to the detriment of the Arab media. The importance of the category « others » can be explained by the large number of projects for Turkey and Israel, two countries which traditionally constitute the destination of a large part of regional FDI, according to the World Investment Report (WIR, UNCTAD).
Figure 5. Country of destination of 2003 FDI projects (MIPO)
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Detailed analysis of the MIPO results
Analysis by origin
The spread of investments per country of origin is heavily concentrated (Figures 6 and 7) :§ 5 countries (France, the United States, Spain, the United Kingdom and Germany, in this order) were at the origin of 177 projects, that is 64 % of the FDI towards the MEDA region in 2003;§ 162 projects (59 %) came from the European Union, and 44 projects (16 %) originated in the United States; § the MEDA countries participate at a level of more than 4 % (12 projects) in the investment, which testifies to the beginning of regional integration –it will be interesting to follow the evolution of this percentage in the future;§ For their part, the non MEDA Islamic countries (Saudi Arabia, the Emirates, Kuwait, Iraq, Iran, Malaysia…) contributed 19 projects (7 %) as much in the tourism domain as in the agro-food or automotive industry;§ the Asian countries were at the origin of 10 investment projects (4 % of the total) ;§ finally, 28 projects (around 10 %) came from various countries: Switzerland, Russia, Australia, Canada, Brazil, Chile, etc.
This geographical spread probably under-estimates the small projects of regional origin, hence the contribution of intra-regional trade, as well as investments from Islamic countries. This was confirmed by more complete information received from Morocco and Lebanon. It can be hoped that this methodological distortion, linked to the way in which the data were collected, may be attenuated with time.
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Detailed analysis of the MIPO results
Figure 6. Large regions of origin of the 2003 FDI projects (MIPO)
Figure 7. Countries of origin of 2003 FDI projects (MIPO). In bold : EU ; in italics : MEDA
Origin country Nb. projects Origin country Nb. projects
France 78 Greece 3USA 44 Netherlands 3Spain 20 Canada 3UK 19 Sweden 2Others 19 Belgium 2Germany 17 Denmark 2Italy 11 Japan 2Gulf States 9 Malaysia 2Switzerland 7 South Korea 2Russia 4 Australia 2Egypt 4 Turkey 2Saudi Arabia 4 Lebanon 2China, HK,Taiwan 4 Israel 1Jordan 3 Libya 1
Portugal 3 Total MEDA-12 275
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Detailed analysis of the MIPO results
The presence of countries as different as Australia, Japan, Russia or China, while quantitatively insufficient, is a very encouraging sign, for it is clear that the enterprises of these large countries have a long term strategy and have uncovered in the MEDA region the presence of profitable production potential, or the existence of interesting outlets.
Intra-MEDA FDI There are 12 projects deriving from intra-MEDA trade (4,4 % of the total). This still modest situation should be tempered by the under-representation of the SMEs in MIPO. The corresponding investments come from Egypt (4 projects), Jordan (3), Turkey and Lebanon (2 each), Israel (1). Egypt, by its role in the heart of the Machrek, and the existence of cooperation agreements with the Maghreb, is well placed to act as the gate of entry to the MEDA. Analoguous reasons may be invoked for Turkey, another regional power, and possible intermediary between the countries of the MEDA region and the European Union.
Analysis by sector The sectoral spread is relatively well-balanced (4 sectors with more than 20 projects, 9 sectors with 10 to 20 projects, 9 others sectors with 5 to 9 projects, cf. Figure 8).
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Detailed analysis of the MIPO results
Figure 8. Sectors of activity of 2003 FDI projects (MIPO)
§ The well-represented sectors (more than 20 projects) are textiles, automobile construction and equipment manufacturers, tourism and agro-food;§ The intermediate sectors (10 to 20 projects) concern respectively the following activities: transport, storage, Public Works; telecoms operators and internet access providers; consulting, engineering and operational services for enterprises; distribution ; glass, wood, paper, publishing, minerals, ceramics (a sector which includes cement works); chemicals, plastics ; energy ; software and computer services; electronic components;§ The poorly represented sectors (5 to 10 projects) associate both the leading edge technologies (medicines;
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Detailed analysis of the MIPO results
biotechnologies; aerospace equipment) and « traditional » activities (other service activities, commercial or financial ; metals ; machines ; electrical, electronic, computing, and medical equipment; furnishing and household equipment).
The projects which create the most employment opportunities are to be found in tourism, retail distribution, as well as the new technologies and call centres: tourism in Morocco and Lebanon; electronic components in Tunisia and Israel; textiles in Turkey, in Tunisia and Morocco.
The « innovating » sectors (linked to design, research, compared with the sectors of production, often relocated, or distribution) are well represented: 66 projects, that is 24 % of the total, in activities such as telecoms & internet, consulting, engineering & operational services for business, software & computer services, medicines and biotechnologies.
Analysis by type of enterprise
The search for investments from announcements that appeared in the international press and via internet favours the large projects and multinational corporations at the expense of SMEs.
Figure 9 below supplies an (incomplete) list of the world class enterprises to be found in the MIPO 2003 appraisal. This list includes more than 50 names, which is both remarkable and very encouraging for the future: a phenomenon of emulation is not to be excluded, the installation of a production site often leading to the study of a site for a similar unit by a competitor who has his eyes on the same market.
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Detailed analysis of the MIPO results
Figure 9. Major enterprises which have invested in MEDA in 2003 or who have declared their interest in doing so. In italics, pre-projects
ß Accor ß Advent International ß Alcatel ß Alstom
ß Bayer ß Benetton ß Birla Group ß BMW
ß Bosch ß Bouygues ß British Airways ß Carrefour
ß Cetelec ß FADESA ß Fiat ß Gemplus
ß General Electric ß Haribo ß Hoffman ß HP
ß Hugo Boss ß Hydro Agri ß Hyundai ß IBM
ß Imperial Tobacco ß Intel ß Jaako Poyry Group ß Kraft Foods
ß Lafarge ß Land Rover ß Lufthansa ß Mercedes
ß Merloni TermoSanitari ß Metro ß Moody’s ß Motorola
ß Nestle ß Nokia ß Novartis ß Orascom
ß Philip Morris ß Procter & Gamble ß Renault ß Sagem
ß Samsung ß Scania ß Shell ß Siemens
ß Société Générale ß Starbucks Coffee International
ß STMicroelectronics ß Thales
ß Toyota ß Valeo ß Vivendi Universal ß Walt Disney Holding Companies
Most often, a large enterprise locates in a country in the region and from this base hopes to supply the other countries of the region. This phenomenon is to be found in the agro-food industry or automobile construction. An examination of the projects announced shows that joint-ventures with a local partner concern 49 projects (18% of the sample).The enterprises with a veritable MEDA strategy –characterised by a presence in several countries of the MEDA region or in several sectors – are becoming significant in number. The following may be quoted as examples:§ Orascom (Egypt), present in Algeria in the cement field, the mobile telephone sector and Internet access, and in Tunisia in the mobile telephone domain;
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Detailed analysis of the MIPO results
§ Vitra-Sanitaire (Turkey), present in Turkey, Algeria and Morocco;§ Dagris (France), present in Algeria and Morocco;§ Renault (France), which has started both the production of a top-of-the-range car (the Mégane) in Turkey and the adaptation of an inexpensive car (the Rumanian Dacia at a little more than 6 000€) in Morocco ;§ Valéo (France), which has relocated the production of automotive equipment in Turkey and Morocco by closing its factory in Catalonia;§ Two Portuguese cement manufacturers, Cimpor, which has invested in cement works in Algeria and Morocco, and Secil, which has invested in the extension of its cement works in Tunisia, and is also interested in the privatisation of a cement works in Algeria ;§ Bin Laden Group (Saudi Arabia) present in Syria in the tourist sector and also in the production of olive oil ;§ Accor (France), which has invested in several countries of the region and continues to do so;§ Carrefour (France), which has entered the Egyptian market (after Tunisia) and envisages a project in Israel;§ Mediterranean Fruit Company (Italy) – agro-food/training-, which has opened an office in Morocco after those existing in Egypt and Turkey;§ ST-Microelectronics (Italy-France), which invested in 2003 in both the production of micro-chips in Tunisia and in design and R&D centre in Morocco, the company is also already present in Malta.
The regional strategy of this latter enterprise (Figure 10) is very interesting, since contrary to what might be imagined, ST Micro designs a large part of its electronic components in the MEDA countries – taking advantage of the attractive
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Detailed analysis of the MIPO results
salaries of the engineers- and produces them in the EU countries, for example at Rousset, near Aix-en-Provence.
Figure 10. The EuroMediterranean strategy of ST-Microelectronics (source : STM)
MEDA « power house » for certain sectorsIn textiles, of course, but also in tourism or the automotive industry, the MEDA region appears as an economic power and an weighty partner. The list of projects from the automobile sector (Figure 11) is impressive. It shows that the large constructors and equipment manufacturers are just as interested in the local market (heavy goods vehicles, basic and inexpensive private vehicles, assembly lines etc.) as the production at competitive cost for the world market (the case of Bosch, for example).
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Detailed analysis of the MIPO results
Figure 11. List of projects in the automobile sector (MIPO 2003)
Investor Project DestinationAC Motors R&D automotive centre created in Malta MaltaBMW Opening of an assembling factory EgyptBosch Bosch will invest 182 m Euros in Turkey TurkeyDaewoo Increase of Valeo activities and investments in Algeria AlgeriaDenso Building of a new factory in Istanbul TurkeyEC2M Manufacturing unit of automobile components in Tangier MoroccoEMDEP Morocco
Manufacturing unit of automobile cable harnesses in Tangier Morocco
Federal Mogul & TPK
Joint venture for an automotive spare parts plant Turkey
Fiat The company returns to Algeria with Ital Motor AlgeriaGAZ The Russian car manufacturer GAZ plans to open an assembly plant in
Egypt in 2004Egypt
Hyundai Opening of a new center of production for Hyundai Accent TurkeyIMPCO Creation of a joint venture with AFG for automotive engines EgyptInnova-tive Systems Europe
Construction of a new factory in Aksaray Turkey
Kamaz (Prospect) Installation of a car assembly plant EgyptLand Rover Opening of an assembly plant in the strategic exportation area in Ma’an JordanMan Man is on the verge of investing 19,6 m Euros to build a bus production
line Turkey
Mercedes New investment in the Turkish factory for truck production TurkeyPrevent A car seat manufacturer will open a new factory in Casablanca by the
end 2003Morocco
Proton Malaysian automaker Proton plans to assemble cars in Syria SyriaRenault Renault buys Somaca to produce a cheap car by the beginning of 2005 MoroccoRenault Renault launches its new Megane production in Turkey TurkeyScania Building of a new production plant for trucks AlgeriaSunviauto Manufacture of caps for automobile seats MoroccoToyota Increase in capacity for the production of some new Toyota Corolla
modelsTurkey
UAZ Russian motor-vehicle producer to open plants in Poland, Egypt and Ethiopia
Egypt
Valeo Opening of a new plant for automotive spare parts in Bouznika Morocco
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Detailed analysis of the MIPO results
In 2003, the ANIMA project (though a co-operation between AFII and Université Dauphine) initiated a study on the automobile electronics and the textiles-clothing sectors (including a EuroMediterranean panorama). These will be available soon.
The relocations
The relocation projects – more or less announced as such in the body of the press releases- would seem to concern a very small minority of investments in MEDA (less than 10 projects, cf. Figure 12). It often concerns French or Spanish SMEs who are already aware of the industrial fabric of the host countries and consider it impossible to continue producing profitably in Europe.
Figure 12. List of relocation projects (MIPO 2003)
Sector Company Project DestinationDrugs Pharmaceutics
CoRelocation of pharmaceutics produc-tion in Turkey
Turkey
Electronic components Apem The electronics group Apem relocates from France to Tunisie
Tunisia
Electronic components Ferraz Shawmut Tunisia hosts the electrical components production after relocation from Europe
Tunisia
Electronic ware Bouyer A French sound system company relocates in Tunisia
Tunisia
Furnishing and houseware Simon (Prospect) Opening within the 2 next years of a manufacturing plant of small electronic appliances
Turkey
Textile, clothing, luxury Rouleau-Gui-chard
The underpants manufacturer reloca-tes its factories in Tunisia and Romania
Tunisia
Textile, clothing, luxury Adria Installation of a new textile plant TurkeyTransport, storage, cons-truction, public works, water & utilities
Fundiciones Caetano
Opening of a joint venture in Tangiers Morocco
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Detailed analysis of the MIPO results
In 2003, the ANIMA project initiated, with Pr Michalet (Université Dauphine), a study on the spin-offs of the relocations in the MEDA (an attempt at an overall economic appraisal, including in particular all the costs and advantages from the point of view of Europe). Another ANIMA study concerns a sector which has been subject to a large number of relocations (call centres).
Fore-runner signs of increased investmentThe number of projects devoted to business services, consulting, financial, media, publicity or logistics activities bears witness to renewed interest for investment in the region. It is for that reason that:§ The banks and financial organisations are returning (Société Générale and Diagram E-Banking EDI, Algeria, Visa, Jordan, Cukierman Investment House, Israel etc.);§ The rating company Moody’s is setting up in Egypt targeting the Near East, whilst business law firms such as Gide Loyrette Nouel are opening offices in Morocco and Algeria;§ The media (Presse+, Morocco, Cosmopolitan, Israel), advertising agencies (Superbrands and Young & Rubicam, Morocco), consulting firms like Cegos (Morocco), training organisations (John Seymour, Turkey, AFT-Iftim, Morocco) are setting up branches,§ Courier companies such as DPD (La Poste), DPWorld Net (Deutsche Post), TPG (Netherlands Postal Service) are in a struggle for the Turkish market; in the same way, 5 investments linked to the opening of regular air lines to the region have been detected.
Quality of the FDI projectsThe investment promotion agencies (IPA) are today, rightly
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increasingly attentive to the quality of the FDI projects, and not exclusively to the volume of the flows that they attract. The aim is to seek in priority sustainable projects, with their multiplier effects for the economy (spin-offs, subcontracting, creation of « clusters »), as many positive externalities as possible (for example, energy savings) and as few negative externalities as possible (for example, degradation of the environment).From this point of view, the following observations may be taken from the MIPO 2003 base:§ As regards those projects with negative externalities, there are no fewer than 5 cigarette manufacturing projects in Turkey (2), Egypt, Jordan and Morocco; tobacco producers encountering increasing numbers of constraints in Europe, are turning towards the MEDA countries, which represent for them an appreciable reservoir of customers; in the same line of thought, but doubtless less questionable for public health, several projects concern the production of candies (Turkey), sweet soda drinks (Morocco) and alcohol (Turkey, Algeria); elsewhere, at least one weaponry project (adaptation of French Mirages in Morocco) is to be found in the list –with certain local spin-offs;§ Several projects concern aspects sensitive from an environmental point of view; chemical plants (the production of polyols, fertilisers, etc.), often in Turkey or in Egypt; there are also large public works or tourist projects such as Tanger-Méditerranée and more or less pharaonic tourist resorts envisaged here and there;§ The projects which correspond to the prime needs of the populations (household goods, agro-food, distribution, clothing, automobiles, etc.), to the development of the infrastructure (construction, ports, air transport, etc.), or the installation of base industries (cement, paint, hydraulics, etc.
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) are very numerous, and this is a cause for rejoicing, for they are preparing the way for the MEDA region to take off; § It is the same for the projects which gamble on the comparative advantages of MEDA, and especially for the products for export (olive oil, sea foods, fruit, textiles, automobile parts, electronics) and tourism, which is often still far from realising its full potential (MEDA receives half as many tourists as France each year) ;§ Finally, technologically advanced projects are beginning to appear and bring benefits to certain countries: in the realm of information technology, a dozen or so projects concern R&D (3 in the Maghreb) or the design of electronic components, 5 software development projects, 2 e-shopping and e-banking projects; 5 « biotech » projects have been identified, concentrated on Israel (4 projects) and Tunisia; two other R&D projecst have been detected: a pharmaceutical research centre in Algeria, an automobile research centre on Malta; in aerospace, Morocco has joined Tunisia as an equipment supplier for the Airbus programme.
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Interest of the MIPO observatoryThe data base created by ANIMA should enable the different agencies of the partner countries (Investment Promotion Agencies –or IPAs) to have available a common « objective » reference and an increasingly reliable data base of real projects effectively located within the MEDA region. The data available will be even more reliable since it is an annual appraisal and intended to be undertaken each year. The gradual development of a series sustainable in time will enable the data to be processed statistically and thus enrich the base, as well as the relevance of the information which may be deduced from it.The MIPO (Mediterranean Investment Project Observatory) data base also has the objective of building an immediately operational tool for the IPAs of the partner countries. The information which is contained in it should be directly used for « promotional » ends, to monitor their performances, and for the enhancement of particularly representative or exemplary cases, the « success stories ».The lack of equality in the information received from the different IPAs introduces a strong bias in the analysis of the results and highlights the stake of a greater cooperation between ANIMA and the IPA partners.
4. Desirable improvements for future reports
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Desirable improvements for future reports
Conditions for the success of the MIPO observatory The interest and essential originality of the MIPO appraisal is that it presents foreign investments in the form of real projects (operational or announced) and based on an analytical approach. This data base will in time gain supplementary value, with the possibility of being able to study the evolution of the main indicators, by building sufficiently long time series and on the condition of being able to guarantee a certain methodological stability.The following proposals for improvement are suggested:§ The first improvement could come from a stricter definition of the criteria for inclusion in the assessment: separate treatment of the pre-projects (knowledge of which is strategically important for the IPAs) or projects which do not involve the creation of job opportunities. In this way, the purchase of capital equipment will be systematically set aside when there is no question of the creation or the extension of a foreign enterprise, despite it being an investment from the the company point of view. On the contrary the purchase of holdings by foreign enterprises would be maintained; § The collection of information from the « economic intelligence» unit could be improved by widening the field of exploration towards documents specific to the region studied and by completing the results with a « manual » research using a limited documentary base but one directly adapted to the theme and the geographical area studied. Information available in Arabic would be very useful; § The active participation of the MEDA IPAs before the annual publication of the MIPO is fundamental and should be systematic. The contribution of the IPAs linked
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Desirable improvements for future reports
to their knowledge of the field: exchange of information, rectification of obvious errors, contribution of information on projects which have not been the subject of international press advertising, « dead » projects perhaps still promoted by one intermediary or another… During the preparation of the MIPO 2003 appraisal, it was observed that the active participation of certain IPAs (Morocco, Lebanon) has enabled practically the doubling of the number of projects included in the appraisal for these countries. It has also been noticed that this participation, characterised by a knowledge of local reality is irreplaceable and is even reflected in the nature of the projects listed, which could not have been found by ANIMA. This partnership between ANIMA and the IPAs could be developed in the future insofar as, it is to be hoped, the IPAs are to be equipped with supplementary means and where exchanges between the IPAs and ANIMA may intensify;§ There is no point here of questioning the confidentiality of certain projects. Only those projects which have been subject of a public announcement may be « shared » at regional level. These are both numerous and also reveal the attractiveness of the country even if a time shift exists with the projects still under negotiation;§ As regards the frequency of information available concerning employment and the amount of the investment, the result obtained (around 2/3 for one or the other of these items of information) is very satisfying for a first try. This aspect should be improved in the future, with the help of the IPAs or by research on Internet. Employment should be subjected to special attention and where necessary, a systematic search for information coming from the investor, or an estimate.
Proposals for the appraisals to follow
The first role of the MIPO is to build a practical tool to dialogue
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and exchange information between the IPAs of the MEDA area.The active participation of the IPAs in the creation of the MIPO enables the data base to be enriched both in quantity (number of projects) and in quality (description, figures for employment and the amount of the investment).With the gradual creation of a longer time series, MIPO may become a source of specific finer studies (sectoral, regional, national…)According to the last report of the FEMISE 2003, the strong demographic growth and in consequence the priority given to investments which creates jobs will be absolutely imperative for all the countries of the region in the medium and long term. With this prospect in mind, it would be useful to allocate a major role in MIPO to the variable « employment ». Beyond the most precise description possible and the location of the project, it would be useful to indicate for each investment whether it is a creation, an extension or a takeover.Comparisons between the MIPO series and the WIR figures could be the subject for a study of the evolution of the main global indicators (groups of countries) and an examination of coherence. As regards the systematic bias defavourable to SMEs, it is to be hoped that this phenomenon will in future be corrected by an improvement and an enlargement in the documentary base, and especially by the active participation of the IPAs of partner countries, who close to the ground, are in a position to report on the investments really made in their respective countries.
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Appendixes
Direct Foreign Investment (FDI) in the MEDA region in 2003
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The comparison between MIPO 2003 data and the WIR (World Investment Report, UNCTAD) 2003 data should be made with the utmost reservation and precaution.The MIPO data base contains productive physical investments or short term investment announcements. It is therefore a micro-economic type analytical approach. A time lag often exists between real projects (known by the enterprises) and projects announced in the media. Given the availability of information with figures, it is only possible to provide accounts of amounts invested or jobs created by numbers of projects and groups of countries. Consideration should also be given to the fact that this is a first attempt at a task intended to be renewed annually. The WIR approach is, however, based upon a long series and annual amounts expressed in US dollars. The figures are built from macro-economic data (balance of payments, national accountancy). The field of activity taken into account is wider (profits reinvested, intra-company loans, sub-contracting, project management contracts, turnkey agreements, franchises, patents …). Finally, the WIR 2003 report in fact covers 2002 data.The table below (Figure 13) gives, for each group of countries (Maghreb, Machrek, and other countries), the percentage of investments (FDI) listed in WIR during the five previous years and the percentage of the projects listed in MIPO 2003 (with and without data directly supplied by the Moroccan ID) :
5. Appendix 1. Comparison with the macro-economic results of UNCTAD (WIR)
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Figure 13. Representativity of MIPOWIR 98/02 MIPO 2003 MIPO except DI (1)
Maghreb 26 % 53 % 44 %
Machrek 18 % 19 % 23 %
Others 56 % 28 % 33 %
(1) excluding 43 projects provided directly by the Moroccan DI
It would appear that the « youth » of MIPO and the existence of a bias linked to the heterogeneity of the information collected makes any attempt at a comparison or an examination of coherence between the WIR data and MIPO difficult. Two long series of figures need to be available (a minimum of 3 years) to be able to make a real comparison of trends between the two sets of data.
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Renault produces the « Mégane » in TurkeyThe production of the Mégane has been launched in Turkey. Renault has started production of the new four-door Mégane at its Bursa plant, in North-Western Turkey. The car will be manufactured here for the whole world. It should be on the market during September in Turkey and in Europe, then in th rest of the world between now and the end of the year. The Bursa factory will supply 84 countries. With this car, the French constructor intends to consolidate its position as leader of the private car market in Turkey where at the end of July 2003, it held a 19.2 % market share. It also intends to pursue the development of its sales outside Western Europe. The four-door Mégane in fact targets the Southern and Eastern European countries as well as those situated outside Western Europe whose develeopment is the most recent. Some 40,000 Méganes should be produced this year and once crusing speed is reached 108,000 units should leave the plant each year. Renault has been been in Turkey since 1969 in partnership with the group Oyak. The joint company has invested 200 million euros in the Bursa plant to produce this model. The choice of Turkey to produce the Mégane consolidates the presence of Renault in the country, despite the serious economic crisis which reigns since 2001 and has seriously affected the automobile market. Source : La Tribune Desfossés 3 September 2003. © 2003 La Tribune – Desfossés
Integrated circuits manufactured in TunisiaNew subsidiary in Tunisia of the multinational STMicroelectronics. Yesterday afternoon, at the El Ghazala Science Park, M. Mohamed
6. Appendix 2. Some significant « success stories »
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Appendix 2. Some significant « success stories »
Nouri Jouini, Minister of Development and International Cooperation, inaugurated the Tunisian Centre for the Design of Micro-Electronic Components, a subsidiary of the company STMicroelectronics, which specialises in the manufacture of integrated circuits. The activities of the Tunis centre which employs 100 Tunisian engineers are centred on the production of integrated circuits, general public software applications and microcontrollers. Furthermore, M. Philippe Geyers, Vice-Chairman and Managing Director of the General Public and Microcontroller Groups of STMicroelectronics pointed out that the strategy of STM Tunisia involved an increase in staff from 100 to 250 engineers in 2004 to 500 in a later phase. Site http://www.st.com
Relocation : SQLI installs an offshore hub in MoroccoSSII is developing in Morocco so as to anticipate its clients’ demand. « We are convinced that the movement to offshore is inescapable, says Yaya El Mir, Chairman of the Board of the group SQLI. We must therefore anticipate so as not to be overtaken. » It is with this perspective that the service company has opened a development centre in Morocco, which came on stream in the month of October. « We chose Rabat for the quality of its education and the recruitment perspectives it offers, as well as its geographical and cultural proximity with France », explains Yaya El Mir, who does not hide the fact that his Moroccan origins were something of an advantage. Important recruitment campaigns. The group is to develop this centre as an extra branch. « We have been committed to a quality approach since 2002, the CMM-I approach. It is necessary to control the whole of the chain and therefore possess in-house resources », specifies Yaya El Mir. A dozen or so people will need to be recruited initially, then a further twenty between now and the end of 2004.The SQLI objective for 2006 is to employ more than 200 people in this centre, which will concentrate its competence in the J2EE, NET and OpenSource architectures. The group estimates
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that it will achieve a drop in costs of 20 to 30 % in its fixed price projects, which represent 50 % of its total activity. In «lettre les Pôles Med de production de contenu» Marseille Innovation December 2003SQLI in line with the industrialisation of services. The SQLI Group, specialist in Consulting and Integration in Information Systems and e-Business, has opened a development centre in Morocco. With an already powerful network of 11 sites in France and 2 branches in Switzerland, SQLI is pursuing its development and opening an “offshore” hub. To succeed in this venture and thus reconcile quality and competitiveness, SQLI is relying on CMM-I (Capability Maturity Model Integration), a comprehensive approach to quality undertaken by the Group in 2002, and a sine qua non condition for the success of offshore / nearshore projects. The choice of the SQLI Group finally went to Morocco, firstly for its geographical and cultural proximity (no time difference nor translation problems) and secondly for its wealth in human resources, with a high level of qualification. This structure, operational since October 2003, will gradually realise its potential in relation to the projects undertaken and according to an internal growth model which guarantees a single company culture. It will enable the SQLI Group to undertake projects involving several thousand man days, based on the technical mastery of the teams and a high level of quality. Source : Armelle Siccat. 26 September 2003. Les Actualités de 01Net. All rights reserved (c) 2003 Groupe Tests, 01net.
Air-con manufacturing facility in Lebanon Copeland Corp. to remodel plant, add 360 jobs in Lebanon LEBANON Copeland Corp. plans to expand into a new facility and bring 360 more jobs to Lebanon by 2005, Mayor Bud Allen announced Tuesday. Allen said Copeland Corp., which makes refrigerator and air conditioner compressors, plans to move into the former VF Jeanswear Lebcut plant. Allen said Copeland would lease the building from the city beginning Friday. The Sidney, Ohio-based subsidiary of St. Louis’ Emerson Electric Co. was already Lebanon’s largest employer, with more than
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800 workers. The plant’s three production lines produce about 2 million compressors annually for use in home and business air-conditioning systems. Lebanon lost 750 jobs when VF Corp. closed its jeans plant in January. ``Hopefully, we will get as much as half the jobs back that we lost,” Allen said. Allen said Copeland would pay to retrofit the 170,000-square-foot building, creating 21 jobs immediately. Copeland Plant Manager Scott Evans said his company plans to move some distribution services into the building from its current plant, which is about two miles northeast of the old VF plant. Evans said the new plant would handle the company’s service compressor line and direct inventory and compressors to specific customers. ``That’s not to say that three years from now, what’s over there couldn’t be something different,” Evans said. ``But having that square footage places us in position where we have a lot of flexibility, and we think that will be a win-win for us and the community as well.” Evans said the company is looking to add a fourth production line with two new products, including a fifth-generation scroll compressor still being developed. The city did not offer any additional incentives to Copeland, but will seek state and federal grants to improve streets and services around the plant, Allen said. Allen said the city would have loved to regain all the jobs it lost when VF closed its plant, but 360 jobs was a good amount in the short term. The plant will also help the city with other revenues it lost in January. ``It was a big loss to us, both in electricity, water and sewer,” Allen said. ̀ `We hope to get some of that back.” Source: Associated Press
Orascom projets in Algeria
ALGIERS, 24 September. Orascom Telecom Algerie (OTA), subsidiary of the Egyptian group Orascom and holder of the 2nd operating licence for GSM mobile telephones in Algeria, has invested the sum of 1.1 billion dollars in the telecommunications
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sector in this country, the Chairman and Managing Director of the group Nadjib Sawaris announced in Algiers on Wednesday. During a press conference held to celebrate the occasion of its one millionth subscriber, M. Sawaris indicated that his group had also invested 250 million dollars in the construction in a cement works at M’sila (North West Algeria), which has been operational for the past two weeks. The Chairman was equally proud of the profits made in Algeria this year, which he qualified as « excellent » and « unexpected », especially in the mobile telephone sector, since any investment normally takes two or three years to show a profit. When questioned on the investment environment in Algeria, he said that the environment was “reasonable” and that the yields on investment are “positive”. It should not be forgotten that the Orascom group had obtained the 2nd operating licence for GSM mobile telephones in July 2001 and it today controls 87.5% of the market, with the remainder held by the public operator Algerie Telecom. Source http://www.algeria-interface.com
Moody’s in Egypt
Moody’s the rating agency, announced yesterday that it had signed an agreement with the company Finance and Banking Consultants International (Finbi), based in Cairo, to create a joint-venture to provide ratings and financial studies in Egypt and the Near East. This new company will be called Middle East Rating & Investor Services (Meris). Source : La Synthese des Marchés August 6, 2003
Malaysian car assembly line in Syria
Proton Plans To Assemble Cars In Syria. Malaysian automaker Perusahaan Otomobil Nasional Bhd. (P.PON), or Proton, plans to assemble cars in Syria, the New Straits Times newspaper reports. Proton has signed a memorandum of understanding with Syria Modern Technology Trading Co., the newspaper says. “We are trying to look at a total alliance with MTT, with the help of the
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Malaysian and Syrian governments, to develop their small-medium industries through the automotive industry,” the paper quotes Proton Chief Executive Officer Mahaleel Arif as saying. Proton and MTT will study the viability of the project over the next three months. Currently, MTT imports the Proton Waja and Wira cars. Last year, about 650 Proton cars were sold in Syria, representing approximately 5% of the country’s car market. Source: Malaysia Press. Newspaper web site: http://www.emedia.com.my
A macro- tourist complex in MoroccoThe property company of Galician origin, FADESA, has just decided on a sizeable investment in Morocco. The operation, called Complexe Mediterrania Saidïa-Maroc, plans the creation of a macro tourist resort with 16,000 beds (spread over 8 four and five star hotels) as well as 3,000 tourist residences, three 18 hole golf courses, several service and shopping centres... In total the investment represents the creation of 8,000 direct jobs and around 40,000 indirect for a total sum of 1.5 billion euros. The company FADESA was in competition on this project with 13 development companies. Source www.fadesa.maFirst investment of 18.9 million euros and 180 jobs only in 2003. Source : Morocco DI (31/12/2003)
Tesco sets up shop in Turkey The leading cross-channel food retailer is about to purchase a chain of Turkish hypermarkets, thus completing its international development. Tesco supermarkets, which occupy the top place in the British market, announced yesterday that they have signed an agreement to purchase part of the capital of Kipa, a Turkish supermarket chain. The agreement concerns 84.3 % of the « A » shares of this company and could be finalised later in the year, subject to all the suspensive conditions being satisfied. The transaction evaluates the complete capital of Kipa at 75 million pounds (108 million euros).
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Tesco is thus getting its foot in the door of the Turkish market and crossing a new threshold in its international development. The distributor is in fact present in Eastern Europe (Hungary, Poland, Czech Republic and Slovakia) and in Asia (Thailand, Taiwan, Malaysia and South Korea). The group currently has 45 % of its selling surface outside the United Kingdom and 75,000 staff members abroad, out of a total of 296,000. In 2002, Tesco had a turnover of 5.2 billion pounds (7.5 billion euros) abroud, that is an increase of 31 %. But that represents, however, a mere 18.2 % of its activities. Upcoming store openings. The retailer plans to open 16 hypermarkets in Asia and 18 in Europe this year and continues to examine the possibility of a presence in China and Japan. This does not prevent the group from developing in the United Kingdom, where it intends to open 25 stores during the course of the year (« Les Echos » of the 9 avril). The international development of Tesco represents one of the aspects of its development plan, introduced six years ago, and which includes development in the non-food sectors, such as textiles, furnishings, or the sales of services to the general public, such as financial services. News of the agreement with Kipa was well received by the London market where the stock was up by 5 pence at mid-session. Source : Les Echos, n° 1889118 April 2003, p. 17 ; Tesco va s’implanter en Turquie by MARIE-LAURE CITTANOVA
Carrefour targets IsraelExclusive: French retail giant Carrefour eyes Israeli market. Carrefour has been testing the Israeli market for several months, preparing its market penetration. Sources inform “Globes” that French retail chain Carrefour, the world’s second largest after Wal-Mart Stores (NYSE: WMT), has been testing the Israeli market for several months, preparing its market penetration. In the past, Super Sol (NYSE; TASE:SAE) and Blue Square Israel (NYSE: BSI) negotiated a partnership with Carrefour, but no agreement was achieved. Carrefour may choose to establish an independent platform, rather
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than work through an existing framework. Carrefour adopted this policy for countries such as Egypt, where it began operating six months ago. Three years ago, French chain E Leclerc planned to enter the Israeli market, and even hired Israeli company POC to accompany its penetration. E Leclerc eventually suspended its plans, after the security situation deteriorated. Carrefour operates in 30 countries, and has 383,000 employees in over 9,000 outlets. The company made a €1.37 billion profit on sales of €78 billion. Source: Globes [online] - www.globes.co.il - on June 29, 2003
Indian acrylic fibre plant in EgyptAn acrylic fibre plant, with 500 million Egyptian pounds ($82.4 mln/73.4 mln euro) invested in the initial stage, will be built in Egypt, under an agreement between Saudi-Egyptian Industrial Investment Company, India-based Birla Group, Arab Oil Investments Company (as given by the source) and the Egyptian Ministry of Oil, it was reported on September 18, 2003.The plant will be built in the Al-Amiriyah industrial zone in Northern Egypt and will create some 1,000 jobs. The plant is scheduled to begin production in December 2004. In the initial stage, it will have a production capacity of 18,000 tonnes annually, to be raised to 36,000 tonnes in the second stage. The plant will meet the domestic demand for acrylic fibre, which is currently imported. In the third stage of the project, some140,000 tonnes of the plant’s output are to be exported. Acrylic fibre is used in the manufacture of textiles, bed covers, linings and carpeting. Source: www.mistnews.com, 18 September 2003
Technology transfer in TunisiaThis afternoon in Tunis, ProMetic Sciences de la Vie, from Montreal, should announce an agreement with a Tunisian firm which will bring it 30 million dollars between now and the end of 2006 as well as long term royalties varying between 5 % and 8 % on the annual sales of four medecines produced by genetic engineering.
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According to the information obtained by the La Presse, the Tunisian partner of ProMetic is a private biopharmaceutical firm which has been created at the initiative of La Pharmacie Centrale de Tunisie (PCT), a Tunisian State company. The new company in Tunisia will construct a biopharmaceutic plant costing 60 million $ CAN and will exporter to Africa, the Middle East and Eastern Europe generic medicines such as alpha-interferons. These human proteins which act against certain cancers or chronic hepatite B are rare in the natural state, but may be produced in large quantities thanks to genetic manipulation techniques (…). Apart from the income, ProMetic will obtain a minority stake in the new firm, in return for its technologies for the extraction and purification of biopharmaceutic medicines.
(…) The President of ProMetic, Pierre Laurin, confirmed the imminence of an announcement and stressed that ProMetic was only investing its know-how in the enterprise: “We have done this kind of contract work several times with pharmaceutical multinationals (especially Aventis and Bayer), concerning on each occasion the extraction and the purification of a single innovatory medicine, he said. In the case here, it is the same development work, but concerning generic medecines, to the benefit of a co-enterprise in which we shall be minority shareholders”. According to M. Laurin, the Tunisian project is important for ProMetic because it is the first concrete example of a business strategy the aim of which is to export ProMetic technologies under licence. “For certain regions of the world, exporting generic medicines manufactured in North America or Western Europe is prohibitive. It is much more sensible to sell them the technologies which enable them to manufacture their medicines with their own cost and price structures, and their own statutory framework. (…)
M. Laurin added that one of the most important criteria in PromMetic’s decision to participate in the shareholding of the new firm is that it directly involves the Pasteur Institute of Tunis, a research centre of world renown (…). “Its participation gives the co-enterprise cutting edge local expertise, as well as a portfolio of
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potentially very interesting medicines which could be produced by the co-enterprise. “For example, the Institute has developed various products for regional use (vaccines against types of rabies in the Maghreb and antidotes against poison from desert scorpions and snakes) which henceforth have a natural commercial outlet. “These cutting edge products, taken individually, each have much too small a market to ever be of interest to a multinational. But taken together, and manufactured by a regional firm, they represent an appreciable market.” Source: La Presse Affaires, 15 October 2003, Arcand, Denis (c) 2003 La Presse.
Chlorine plant in JordanJordan Bromine Company builds new membrane chlorine plant. The Jordan Bromine Company (JBC) has awarded the key contracts to design and construct a new 25,000 metric ton-per-year membrane chlorine production facility at its Safi plant on the Dead Sea in Jordan. The chlorine from this facility will be used to support the growing demand on the bromine facilities started up in October 2002. This new production unit is expected to be complete and operational in January 2005. Annual capacity is just less than 40,000 metric tons of potassium hydroxide (KOH), including a 15,000 metric-ton flake production facility. All products from the new facility will be marketed worldwide, though primarily to Europe and the Asia Pacific region, by Albemarle Marketing Company, a wholly owned subsidiary of Albemarle Corporation. “This potassium production in Jordan will be an important addition to our existing production of KOH and carbonate products in Thann, France,” said Global Business Director for potassium and chlorine products, Alex Smit. “With two plants in different geographical areas and a complete product line, Albemarle will reinforce its global market position and will be better able to serve customers in Europe and other world markets.” Source: menareport.com
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German industrial heating systems on MaltaA German company has invested E600,000 by opening a new branch in Malta. The company - Hotset Heizpatronen und Zubehoer GmbH - produces electrical heating elements for industrial applications. There are 16 Maltese people employed with the company, but the figure will increase as Hotset expands. The company first set its eyes on Malta a year ago, and through the help of the corporation commenced production in November. Economic Services Minister Josef Bonnici described the new factory as another “German quality investment”. He said the new investment complemented the existing operation of companies in other locations. “Experience showed that the additional production capacity in Malta provides new flexibility and gives an additional competitive edge to these companies. This allows them to expand their product range and target new markets,” he said. The minister spoke about the short time in which the company managed to establish itself in Malta and described this fact as the best guarantee that it would expand in the near future. He said the company would also be an effective advert to attract other foreign direct investment. Prof Bonnici said Malta’s potential to attract foreign investment would be significantly enhanced through imminent European Union membership. Source: www.hotset.de
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The MIPO data base for the year N is built from projects effectively implemented during the year N or which have been the subject of a short term investment announcement. The largest part of the information obtained was collected by the watch team of the AFII (Invest in France Agency), which works essentially on the preparation of the France appraisal and the Europe appraisal of foreign investments. A part has come from certain countries (IPAs), another part has been detected by the ANIMA team based in Marseille.
SourcesThe economic intelligence techniques used by the AFII include the acquisition of the following documentary sources: § Subscription to Reuters economic news flows (more than 10,000 news items per day in French, English and German);§ Subscription to the Lexis Nexis data base;§ Use of accessible « open » bases: for example in France, www.kompass.fr, www.societes.com, www.lexpansion.com;§ Use of subscription data bases: the “World Base” of Dun&Bradstreet (useful for nationality, turnover, registered office, activity, management, etc. https://www.dnb.com (including a part – Who Owns Whom” alias e-WOW)§ Use of complementary bases which can be very useful in their open parts for information about activity, size, main executives, such as www.hoovers.com;§ Systematic or ad hoc search on the web, to collect data to be
7. Appendix 3. Methodological approach
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found on the open sites of enterprises which are interested in the Euro-Med region, or to check incomplete data collected about a project (via Google, as a starter).Specialist software to analyse international data bases using key words such as the country name and expressions linked to the investment business in several languages.The results obtained in this way are transmitted to the ANIMA team, who alone decide if the information should be included in the MIPO observatory. Each project is thus examined individually. Any doubling up within the report of a given year or between successive reports is systematically eliminated.For each investment project, the following information is mentioned in the MIPO table wherever possible:§ the country of destination;§ the name and nationality of the main investor;§ a brief description of the project;§ the sector of activity;§ the number of jobs created (if the information is known);§ the amount of the investment in euros (if the information is known);§ the provisional annual turnover (if the information is known);§ the whole text of the information to provide description and verification.
Eventual complements from the MEDA IPAs The MIPO Excel table which is gradually built up in this way, is available in a simplified version (title of project, date, country of origin, of destination, sector) on the ANIMA internet site. This enables the MEDA IPAs eventually to react and make their comments known to the ANIMA team. At the end of the year, extracts of the Excel table concerning a MEDA area country of are transmitted to the corresponding national agencies (IPAs) for information purposes, observations
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and eventual complements. This last phase is essential: it enables the data to be « validated », while making MIPO a tool for interchange, information and dialogue. Only three countries had reacted by the end of 2003: Morocco (60 projects mentioned by DI, including 43 added to MIPO), Lebanon (with essentially tourist projects, but also an excellent regional economic watch unit) and Malta (with a list which cannot be exploited, since the names of the companies were not supplied). Tunisia, as do other countries, possesses a quality statistical tool of the projects, but it has not been possible to access it. Only one country has rejected a priori to provide information on FDI (Cyprus), given the refusal of its Central Bank.The tables are built on an annual basis. Under a « stable regime», the table of a given year (N), including the start ups of year N and the announcements of future short term investments, is a good indicator of investment for the year N, providing that the announcements made in this same year N are not included in the tables the following years.The information concerning the amount of the investment and the direct employment created have been supplied respectively at levels of 37 % and 29 %, which is satisfactory for a first attempt. It can nevertheless be hoped that in the future this type of essential information will be available more and more often and that especially information on employment generated will be systematically available. The amounts of the investments, often given in US dollars, have been converted into Euros for 2003 at the average annual rate of 1€=1.15 US$ (that is 1 US$=0,8696€).
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