Latest news with #UNTradeandDevelopment
Time of India
9 hours ago
- Business
- Time of India
FDI Inflows: India up at 15th spot in UNCTAD ranking
India's FDI ranking improved to 15th globally in 2024, despite a slight dip in inflows to $27.6 billion. The nation remains the top recipient in South Asia and a leading destination for greenfield projects, particularly in digital services, attracting $54 billion between 2020 and 2024. Semiconductor and basic metals projects are driving manufacturing activity. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India climbed one spot to rank 15th among the world's top destinations for foreign direct investment FDI ) in 2024, despite a slight 1.9% year-on-year decline in inflows to $27.6 billion, according to the World Investment Report 2025 released by UN Trade and Development (UNCTAD) on Thursday. In comparison, the country ranked 16th in 2023 with $28.1 billion in FDI."While flows to India experienced a small decline, it remained the dominant recipient in the subregion (South Asia), accounting for the vast majority of inflows," the report said. South Asia received $24.1 billion in US was the top recipient at $279 billion, followed by Singapore ($143 billion), Hong Kong, China ($126 billion) and China ($116 billion).Globally, FDI fell by 11% to $1.5 trillion in 2024, with a 4% headline increase largely driven by volatile financial flows, according to the also recorded a surge in greenfield project announcements to 1,080 in 2024, placing it fourth globally. The country was among the top five nations in securing international project finance deals at 97. "Countries such as India, Malaysia and Vietnam have enhanced their appeal as manufacturing hubs, bolstered by trade shifts and industrial policies," the report position also improved in FDI outflows, rising to 18th globally with investments totalling $23.8 billion in 2024. In terms of digital services, India led greenfield investment in the Global South between 2020 and 2024, attracting $54 billion. Next was Singapore with $12 billion investment, followed by Brazil, Malaysia and highlighted the rapid expansion of the digital economy, which is growing at an annual rate of 10-12%, faster than the global GDP growth and increasingly driving value 2020-24, developing countries received $531 billion in greenfield digital economy projects, with India receiving the largest share. Investment was concentrated, with 10 economies accounting for around 80% of the US emerged as the top source, contributing 36% of all greenfield projects in digital investments in developing project announcements in supply chain-intensive sectors, including electronics, automotive, machinery and textiles, held steady, the report said. While the semiconductor industry recorded few megaproject announcements, four of the 10 largest were in this sector, including one in India."In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity," the report said.
Egypt Today
11 hours ago
- Business
- Egypt Today
Investment outlook for 2025 weak amid policy uncertainty, but Egypt among key bright spots: UNCTAD
Director of the Investment Research Branch at UN Trade and Development (UNCTAD), Richard Bolwijn CAIRO - 19 June 2025: Director of the Investment Research Branch at UN Trade and Development (UNCTAD), Richard Bolwijn, warned that global foreign direct investment (FDI) flows are under growing pressure amid rising trade tensions, weak investor confidence, and ongoing policy uncertainty. He said that preliminary data for early 2025 suggests the investment climate remains fragile, with record-low project announcements in the first four months of the year. Speaking virtually at the Cairo launch of the World Investment Report 2025, Bolwijn noted that global FDI declined by 11% in 2024, marking the second consecutive year of contraction, with the drop driven largely by Europe, China (which recorded a 29% decline), and South America. However, he highlighted Africa as a bright spot, with FDI inflows rising by 75%, including a 40% increase in inflows even when excluding Egypt's megaprojects. 'Egypt stood out with several large-scale projects, making it a key driver of the continent's growth,' Bolwijn said. He explained that project finance, which is a key source of investment for infrastructure and development, has seen a multiyear decline globally, but Egypt was an exception. 'While international project finance has been on a downward trend, Egypt managed to attract significant volumes, particularly in energy and infrastructure,' he added. Bolwijn also pointed to manufacturing investment as another area of modest global recovery, noting a small uptick in industrial projects in response to supply chain shifts. However, he emphasized that most of this investment still goes to a few countries, primarily those that have proximity to major markets, stable policy environments, and access to trade agreements, areas where North African economies like Egypt have potential advantages. On the digital economy, Bolwijn said it remained the fastest-growing sector globally, driven by strong flows into data centers and fintech, although investment remains concentrated in a limited number of countries. Looking ahead to 2025, Bolwijn warned of persistent risks. 'Trade policy uncertainty, tariff escalations, and investor caution are delaying project implementation,' he said. He added that multinational corporations are 'in a wait-and-see mode,' affecting short-term investment prospects. He concluded by highlighting key areas for policy focus: strengthening regional trade and integration, attracting investment in sectors less exposed to trade disruptions, such as local manufacturing, scaling up infrastructure project finance, and enhancing investment promotion mechanisms, including digital platforms. 'Countries like Egypt that continue to push for reform, improve investment facilitation, and focus on key sectors are better positioned to navigate the current downturn,' Bolwijn said.
Daily News Egypt
12 hours ago
- Business
- Daily News Egypt
Egypt jumps to 9th in global FDI rankings as Africa sees rebound
Egypt's foreign direct investment (FDI) surged in 2024, making it the ninth-largest recipient globally and the main driver of a rebound in investment across Africa, according to a UN report launched in Cairo on Thursday. The World Investment Report 2025 from UN Trade and Development (UNCTAD) showed that Egypt's performance contrasted with a second consecutive annual decline in global FDI when excluding volatile financial flows. The global outlook for 2025 remains negative amid heightened investor uncertainty. FDI inflows to Africa rebounded by 75% in 2024 to $97bn, largely due to flows into Egypt. This increased the continent's share of global FDI to 6% from 4% the previous year, and its share of developing-country inflows to 11% from 6%. Egypt was identified as the primary driver of this turnaround, with a mega-project in urban development at Ras El-Hekma being a significant contributor. Globally, FDI rose 4% in 2024 to $1.5 trillion, but UNCTAD noted this headline figure was inflated by volatile flows through conduit economies. When these are excluded, global FDI registered an 11% decline. The report also found that investment in sectors related to the Sustainable Development Goals (SDGs) in developing countries fell by 25–33% across infrastructure, renewable energy, water and sanitation, and agrifood systems. Only the health sector saw growth, though from a small base. 'This year's findings call for renewed efforts to mobilize private investment for sustainable development, especially in economies facing structural constraints,' said Richard Bolwijn, Director of UNCTAD's Investment Research Branch. While Africa experienced an overall FDI rebound, the report detailed a mixed picture across the continent. Announced greenfield projects fell in both number, by 5%, and value, by 37%, in most countries. Cross-border mergers and acquisitions turned negative, resulting in net divestments of $1.5bn compared with net investments of $9.5bn in 2023. However, announced international project-finance deals in Africa increased in value by 15%, boosted by a megaproject in Egypt, even as the number of such deals dipped by 3%. In Egypt, which jumped from 32nd to 9th place among global FDI recipients, project-finance commitments doubled, supported by large-scale investments in energy and transport infrastructure. The country also defied the continent-wide decline in announced greenfield projects. The report identified North Africa, led by Egypt, as the main growth engine for FDI on the continent. The findings were presented at an event hosted by the Government of Egypt to mark the report's launch. 'In a year marked by shifting global investment patterns, Egypt's consistent presence on the investment landscape, as captured in the World Investment Report, comes as we double down on an ambitious reform agenda that places industrial production, exports, and foreign direct investment at the heart of our economic development model,' said Dr Rania Al-Mashat, Egypt's Minister of Planning, Economic Development & International Cooperation. 'Our focus remains clear: unleashing private sector potential through structural reforms that foster quality growth and resilience by driving job creation, boosting productivity and increasing value-added.' Eng Hassan Elkhatib, Minister of Investment and Foreign Trade, added: 'Egypt is writing a new investment narrative, coupling deep structural reforms and clear, predictable policies with a competitive, transparent business climate and a dynamic private sector. This vision reinforces Egypt's growing role in the regional and global investment landscape, transforming the country into a hub of opportunity and connectivity.' The report also examined policy trends, finding that the number of investment policy measures reached its second-highest level on record in 2024, at 174. Of these, 78% were favourable to investors, although many were shaped by geopolitical and industrial-policy objectives. In the digital economy, the report noted that investment is expanding rapidly but remains highly concentrated, with data centres and fintech attracting most of the flows and leaving significant regional gaps. The launch event in Cairo included a technical briefing on the report's findings and a discussion with representatives from the private sector, international organisations and academia.
Hans India
15 hours ago
- Business
- Hans India
India moves up among top global destinations for FDI in 2024: UNCTAD
New Delhi: India moved up among top global destinations for foreign direct investment (FDI) in 2024, remaining the dominant recipient in South Asia and accounting for the vast majority of FDI inflows, a United Nations Conference on Trade and Development (UNCTAD) report said on Thursday. Despite a marginal dip in inflows at $27.6 billion, India climbed up to 15th place globally in 2024, from 16th position in 2023 when it received $28.1 billion in FDI, according to the UNCTAD's 'World Investment Report 2025'. "While project numbers increased in most regions, only a few countries saw a significant rise in the value of new project announcements. India stood out with projected capital expenditures up by more than a quarter to $110 billion, almost a third of the total in Asia," the report mentioned. There was a notable increase in greenfield project announcements, where India ranked fourth with 1,080 greenfield projects announced in 2024. Greenfield projects have become an important source of investment in the digital economy in the developing world. The number of greenfield projects announced by Indian investors increased by 20 per cent, placing India among the world's top 10 investor countries, the report noted. The country was also among the top five economies in terms of international project finance deals, securing 97 such transactions. The value and number of greenfield projects rose in developed economies but fell in developing countries, reversing the trend observed in 2023. "In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity," said the report. Energy and gas supply retained its position as the top sector by project value, accounting for 14 per cent of the total. The sector shows the highest average project size at $584 million, with a prevalence of utility-scale developments, including solar farms, wind parks, liquefied natural gas terminals and power transmission infrastructure. "The sector saw moderate growth in value (+12 per cent), driven by national energy transition plans in India, Indonesia and Viet Nam, supported by blended finance models and enabling policy frameworks," the UNCTAD report mentioned. Overall, global FDI fell by 11 per cent, marking the second consecutive year of decline and confirming a deepening slowdown in productive capital flows, according to the World Investment Report 2025. Although global FDI rose by 4 per cent in 2024 to $1.5 trillion, the increase is the result of, among other factors, volatile financial conduit flows through several European economies, which often serve as transfer points for investments. "Too many economies are being left behind not for a lack of potential – but because the system still sends capital where it's easiest, not where it's needed," said UN Trade and Development Secretary-General Rebeca Grynspan. "But we can change that. If we align public and private investment with development goals and build trust into the system, domestic and international markets will bring scale, stability and predictability. And today's volatility can become tomorrow's opportunity," Grynspan added.
Yahoo
15 hours ago
- Business
- Yahoo
Russia's flagship economic forum offers scant hope of foreign investment revival
ST PETERSBURG, Russia (Reuters) -Foreign direct investment into Russia has fallen sharply, U.N. data published on Thursday showed, and Russia's premier economic forum in St Petersburg this week is offering scant hope of a revival, with Western investors largely absent. Russia is hosting the St Petersburg International Economic Forum for the fourth time since invading Ukraine in February 2022, an offensive that precipitated sweeping Western sanctions on Moscow and a widespread corporate exodus from the country. Soaring defence spending has propped up Russia's $2 trillion economy since then and Moscow, turning its back on the West, has sought partnerships with so-called "friendly" countries like China, India, Turkey and nations across the Middle East. But for all the talk of new strategic partnerships, foreign holdings in Russia have almost halved to $596 billion since the invasion, according to central bank data, and FDI inflows fell by 62.8% year on year in 2024 to $3.35 billion, UN Trade and Development data showed on Thursday. Sergei Aleksashenko, a former deputy governor of Russia's central bank now living abroad, said few serious businesses would consider Russia as an investment destination even if the war were to end tomorrow. "Everyone can clearly see the situation with property rights is getting worse every day," Aleksashenko told Reuters. The Kremlin has seized about a dozen foreign-owned businesses in the last three years and quickened the pace of domestic asset seizures, with prosecutors claiming Moscow's Domodedovo Airport and grain trade Rodnie Polya. "Stopping the war itself does not significantly reduce the level of political risks," Aleksashenko said, pointing to market risks as well. President Vladimir Putin has said the state should only seize assets where Russia's national security is jeopardised. GOVERNMENT, NOT PUBLIC, RELATIONS "The real question is: where are the investors?" said one Russian participant of the forum who spoke on condition of anonymity. The West has shunned Russia since 2022, and though sanctions make investing in Russia all but impossible, U.S. President Donald Trump's softer stance towards Moscow has led some investors to keep an eye out for opportunities. The forum in St Petersburg, a city founded by the tsars as a window to Europe, for years had a Western-looking feel, but it is now returning to its original role as an event primarily for Russian businesses to network with politicians. "The reason the West came to the forum was because Russia was sizeable, growing and profitable," Denis Denisov, managing partner at financial communications firm EM, told Reuters. "You don't find these three components very often." Now, said Denisov, attending his 18th St Petersburg forum, for most participants the gathering is an opportunity to develop government relations and is less about PR. "The American Chamber of Commerce (AmCham) has been pushing hard for the Russia-USA panel, there are loads of European businesses still operating in Russia," Denisov said. "They're here, they're lobbying, just quietly." Speaking after that panel, AmCham head Robert Agee said there needed to be some sort of end to the conflict before U.S. companies would consider coming back to Russia. Major multinationals PepsiCo, Nestle and Mondelez are among those still operating in Russia, although they have scaled back their business there. 'PRAGMATISM AND OPPORTUNISM' Putin met Indonesian President Prabowo Subianto on Thursday, as Moscow looks to strengthen ties with Jakarta, while Russian officials are turning to Brazilian and Chinese companies to plug gaps left by departing Western firms. But UNCTAD's FDI data shows that actual investment in Russia is waning. But even with Russia's economy on the brink of recession, according to Economy Minister Maxim Reshetnikov, there is domestic money to spend after two years of elevated defence spending fuelled growth. Russian funds have great options, such as collaborating with wealthy individuals that want to invest, rather than keep funds on deposit, said one Russian investor at the forum who declined to be named. People are also jostling for position before the war ends, the investor added. The same is true of Western investors who feel that the wind is gradually changing, said Jean-Jacques Coppee, founding partner of CoppeeLaw & Associates, who is due to speak on the Russia-France panel on Friday. Sanctions have made cross-border payments a "nightmare", Coppee told Reuters, but should opportunities arise, investors will take them, even if others in the West object on moral grounds to engaging with Russia. "The rule is pragmatism," he said. "Pragmatism and opportunism." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
