Automobile Industry in Oman

No. 8 24 January 2012 GLOBAL FLOWS OF FOREIGN DIRECT INVESTMENT EXCEEDING PRE-CRISIS LEVELS IN 2011, disrespect TURMOIL IN THE GLOBAL ECONOMY HIGHLIGHTS Despite turmoil in the world(prenominal) frugality, globular foreign direct investiture (FDI) inflows go up by 17 per centime in 2011, to US$1. 5 trillion, surpassing their pre-crisis average, found on UNCTAD estimates (figure 1). Figure 1. spherical FDI flows, average 2005 2007 and 2007 to 2011 (Billions of US dollars) 1 969 1 744 1 480 1 472 1 180 1 290 1 509 740 0 pre-crisis average 2005-2007 2007 2008 2009 2010* 2011** Source UNCTAD. * Revised. * prior estimates. FDI inflows increased in exclusively study economic groupings authentic, create and transition economies Developing and transition economies overcompensated to reckon for half of global FDI in 2011 as their inflows reached a new track record high, at an estimated US$755 cardinal, goaded princip solelyy by robust greenfield enthronisations. In this gr oup, the 2011 increase in FDI flows was no longer driven by South, eastern hemisphere and South- vitamin E Asia (which saw an increase of 11 per cent), but rather by Latin the States and the Caribbean (increase of 35 per cent) and by transition economies (31 per cent).Africa, the region with the nearly least developed countries (LDCs), continued its worsen in FDI inflows. FDI flows to developed countries overly rosiness by 18 per cent, but the harvest was largely delinquent(p) to cross-border merger and acquisitions (M&As), not the much-needed investment in productive assets through greenfield investment projects. Moreover, part of the M&A deals appear to be driven by corpo stride restructurings and a focus on core activities, especially in europium. Looking forward, UNCTAD estimates that FDI flows will rotate moderately in 2012, to around US$1. trillion. However, the checkmateward pull backly trend in FDI projects over the final quarter of 2011 indicates that the risks and uncertainties for advance FDI development in 2012 remain in place. Global FDI flows ruddiness in 2011, surpassing their pre-crisis level Global FDI inflows up surface in 2011 by 17 per cent comp bed with 2010, despite the economic and fiscal crisis. The rise of FDI was widespread, including all three major groups of economies developed, development and transition though the reasons for this increase differed crosswise the globe (see below).During 2011, many countries continued to implement policy changes aimed at tho liberalizing and facilitating FDI entry and operations, but in like manner introduced new measures regulating FDI (see UNCTADs enthronization policy Monitor). UNCTADs global FDI quarterly index remained steady during 2011, underscoring the increased constancy of flows witnessed during the yr. Unlike foreign portfolio flows that have dramatically started to decline in the terce quarter of 2011, FDI flows maintained their upward trends at least until this p eriod (figure 2).However, as preliminary info from cross-border M and greenfield investment projects suggest, FDI flows are expected to dimmed floor in the fourth quarter of 2011. Figure 2. UNCTADs global FDI quarterly index compared with global foreign portfolio investment index , first quarter 2007 to last quarter 2011 (Base 100 quarterly average of 2005) 350 three hundred 250 200 FDI 150 100 Foreign portfolio investment 50 0 Q1 50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011 100 Source UNCTAD. Notes The Global FDI Quarterly Index is establish on quarterly data of FDI inflows for 67 countries.The index has been calibrated so that the average of quarterly flows in 2005 is equivalent to 100. The similar index for global foreign portfolio investment is also based on quarterly data of portfolio investment inflows for the same 67 countries. This index has also been calibrated so that the average of quarterly flows in 2005 is equivalent to 100 . Figures for the last quarter of 2011 are UNCTAD estimates. After three classs of consecutive decline, FDI flows to developed countries grew robustly in 2011, reaching an estimate US$753 billion, 18 per cent up from 2010.While FDI flows to europium increased by 23 per cent, flows to the unite States declined by 8 per cent (annex 1). These trends stand in stark contrast with the previous year, which saw a infrangible convalescence in the join States and a continuing decline in Europe. Large-scale swings (from contraction in 2010 to expansion in 2011 or vice versa) were also observed for a number of major FDI recipients, including Denmark, Germany, Italy, Sweden and the united realm. Ireland witnessed a large increase in FDI flows due entirely to uprightness and debt movements in the financial sector.The rise in FDI in developed economies, mainly in European countries, was driven by crossborder M which in close to cases appear to be driven by corporate restructuring, stabil ization and systematization of their operations, improving their uppercase usage and reducing the costs. Rising crossborder M in developed countries were partly due to the sale of non-core assets (e. g. Carrefour SA of France completed the spin off of its Distribuidora Internacional de Alimentacion in Spain for US$3. billion), and targeted opportunistic deals due to the lower currency apprise and fire gross sales caused by lower prices of stock exchange grocery stores. However, these universal trends were not shared equally by all developed countries. For example, FDI in Greece and Germany was follow up, but up in Italy and France. The differences also manifested themselves among different FDI components (figure 3). In the majority of developed countries, the share of equity investment declined to less than 40 per cent reinvested earnings accounted for almost half of FDI flows darn new(prenominal) capital flows (primarily intra-company loans) increased.In Europe alone, the se debt flows swung from -(minus) US$25 billion in the first three canton of 2010 to +US$36 billion in the same period in 2011, reflecting parent firms responses to the financial difficulties faced by their European affiliates. Figure 3. FDI inflows by components for 27 selected developed countries, average 20052007 and 20072011 (Percentage) 100 80 60 40 20 0 Average 2005-2007 2007 2008 2009 2010 2011 Q1-Q3 Equity flows Reinvested earnings Other capital flows Source UNCTAD.Notes Selected developed countries included here Australia, Austria, Belgium, Bulgaria, Canada, Czech state, Denmark, Estonia, Finland, Germany, Hungary, Ireland, Israel, japan, Latvia, Lithuania, malted milka, the Netherlands, New Zealand, Norway, Portugal, Slovakia, Slovenia, Sweden, Switzerland, the fall in farming and the unify States. selective information for 2011 cover the first three quarter only. Developing and transition economies continued to absorb half of global FDI inflows in 2011, though with a somewhat smaller share than in the previous year.FDI flows to developing Asia (excluding watt Asia) the principal driver of the dynamic rise of developing and transition economies decelerated as the region suffered from the protracted crisis in Europe. On the new(prenominal) hand, Latin America and the transition economies saw a significant rise in inflows, though not enough to increase the share of all developing countries and transition economies in global flows. FDI flows to developing Asia (excluding West Asia) rose 11 per cent in 2011, despite a slowing down in the latter part of the year.By subregion, East Asia, south-east Asia and South Asia veritable inflows of around US$209 billion, US$92 billion and US$43 billion, respectively. With a 16 per cent increase, South-East Asia continued to outper progress to East Asia in growth of FDI, while South Asia saw its inflows rise by one -third after a slide in 2010. The good slaying of South-East Asia, which encompasses the Ass ociation of Southeast Asian Nations (ASEAN) as a whole, was driven by sharp increases of FDI inflows in a number of countries, including Indonesia, Malaysia and Thailand.FDI to mainland China rose by 8 per cent to an estimated US$124 billion (US$116 billion in the non-financial sector) as a result of increasing flows to non-financial function, though FDI growth in the country slowed down in the last two months of 2011. FDI to Latin America and the Caribbean rose an estimated 35 per cent in 2011, to US$216 billion, despite a 31 per cent drop of the regions cross-border M&A sales. Most of the FDI growth occurred in brazil, Colombia and offshore financial centres.Foreign investors continue to find appeal in South Americas endowment of congenital resources, and they are increasingly attracted by the regions expanding consumer markets. specially attractive are Brazils market size and its strategic position that brings some other emerging markets such as Argentina, Chile, Colombia an d Peru within easy reach. In addition, doubtfulness in the global financial market served to boost flows to the regions offshore financial centres. The fall in FDI flows to Africa in 2009 and 2010 continued into 2011, though at a much slower rate.The recovery in flows to South Africa did not smuggler the significant fall in FDI flows to North Africa Egypt, Libya and Tunisia all witnessed sharp declines in FDI flows during the year. Central and East Africa experienced overall decreases in inward investment flows. West and Southern Africa, meanwhile, saw robust growth during the year. West Asia witnessed a 13 per cent decline in FDI flows to an estimated US$50 billion in 2011. Turkey stood out as an moreoverion, with inward FDI registering a strong 45 per cent increase to US$13 billion, mainly due to a sharp rise in cross-border M&As sales.This amalgamated the countrys position as the regions second largest FDI recipient behind Saudi Arabia, where FDI dropped by 44 per cent, to an estimated US$16 billion in 2011. Transition economies of South-East Europe and the Commonwealth of Independent States (CIS) experienced a strong recovery of 31 per cent in their FDI inflows in 2011. This was mainly due to a number of large cross-border deals in the Russian alliance targeting the energy application. Investors were also motivated by the continued growth of local consumer markets and by a new round of privatizations.Diverging trends in FDI modes accentuated in 2011 Cross-border M&As rose sharply in 2011 especially mid-year as deals announced in tardily 2010 came to fruition (figure 4). Rising M&A activity, especially in the form of megadeals, in developed countries and transition economies served as the major driver for this increase. The extractive industry was targeted by a number of important deals in both regions, while a sharp rise in pharmaceutical M&As took place in developed countries. M&As in developing economies fell slightly in value.New deal activity began to falter in the middle part of the year as the number of resolves tumbled dramatically. Completed deals, which obey announcements roughly by half a year, also started to slow down by years end. Figure 4. Value of cross-border M&A sales and greenfield investment projects, First quarter 2007 to last quarter 2011 (Billions of dollars) vitamin D 450 400 350 $ billion 300 250 200 150 100 50 0 Q1 Q2 Q3 2007 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 M&A value Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 2011 2009 Greenfield value Source UNCTAD.Note Data for the last quarter of 2011 are preliminary. Greenfield investment projects, in contrast, declined in value terms for the third straight year, despite a strong transaction in the first quarter (figure 4). As these projects are registered on an announcement base of operations, their performance largely coincides with investor sentiment during a given period. Thus, their tumble in value terms beginning in the second quarter of the year was strongly linked with rising concerns about the direction of the global preservation and events in Europe.For the year as a whole, the value of greenfield investment projects dropped 3 per cent, compared with the previous year, with nearly three quarters of this decline occurring in developed countries. Greenfield investment projects in developing and transition economies rose slightly in 2011, accounting for about two thirds of the hail value of greenfield investment projects (annex 1). FDI prospects for 2012 guardedly optimistic Based on the current prospects of underlying factors, such as GDP growth and cash holdings by trans national corporations (TNCs), UNCTAD estimates that FDI flows will rise moderately in 2012, to around US$1. trillion. However, the fragility of the world economy, with growth tempered by the debt crisis, the uncertainties surrounding the future of the euro and rising financial market turbulence, will have an impact on FDI flows in 2012. Both cross-border M&As and greenfi eld investments slipped in the last quarter of 2011. M&A announcements continue to be weak, suggesting that equity investment part of FDI flows will slow down in 2012, especially in developed countries. All these factors indicate that the risks and uncertainties for further FDI growth in 2012 remain in place.Annex 1. FDI inflows, cross-border M&As, and greenfield investment by region and major economy, 20102011 (Billions of US dollars) a army region / economy 2010 World 1 289. 7 Developed economies 635. 6 Europe 346. 8 European Union 314. 1 Austria 3. 8 Belgium 72. 0 Czech Republic 6. 8 Denmark 1. 8 Finland 6. 9 France 33. 9 Germany 46. 1 Greece 0. 4 Ireland 26. 3 Italy 9. 2 Luxembourg 20. 3 Netherlands 13. 5 Poland 9. 7 Portugal 1. 5 Spain 24. 5 Sweden 1. 2 joined Kingdom 51. 8 fall in States 228. 2 lacquer 1. 3 Developing economies 583. 9 54. Africa Egypt 6. 4 Nigeria 6. 1 South Africa 1. 2 Latin America and the Caribbean 160. 8 Argentina 7. 0 Brazil 48. 4 Chile 15. 1 Colom bia 6. 8 Mexico 19. 6 Peru 7. 3 368. 4 Asia and Oceania West Asia 58. 2 Turkey 9. 1 South, East and South-East Asia 308. 7 China 114. 7 Hong Kong, China 68. 9 India 24. 6 Indonesia 13. 3 Malaysia 9. 1 capital of Singapore 38. 6 Thailand 5. 8 South-East Europe and CIS 70. 2 Russian Federation 41. 2 Source UNCTAD. a b FDI inflows b 2011 Growth rate (%) 1 508. 6 17. 0 753. 2 18. 5 425. 7 22. 8 414. 4 31. 9 17. 9 366. 3 41. 1 -42. 5. 0 -25. 9 17. 8 .. 0. 5 -92. 2 40. 0 18. 1 32. 3 -30. 0 0. 8 .. 53. 0 101. 3 33. 1 261. 0 27. 2 33. 8 5. 3 .. 14. 2 46. 7 4. 4 203. 3 25. 0 1. 9 22. 0 .. 77. 1 49. 0 210. 7 -7. 7 1. 3 .. 663. 7 13. 7 54. 4 -0. 7 0. 5 -92. 2 6. 8 12. 0 4. 5 269. 2 216. 4 6. 3 65. 5 17. 6 14. 4 17. 9 7. 9 392. 9 50. 4 13. 2 343. 7 124. 0 78. 4 34. 0 19. 7 11. 6 41. 0 7. 7 91. 7 50. 8 34. 6 -10. 0 35. 3 16. 4 113. 4 -8. 8 7. 4 6. 7 -13. 4 45. 1 11. 4 8. 1 13. 8 37. 9 48. 2 27. 6 6. 1 33. 1 30. 6 23. 4 Net cross-border M&As 2010 2011 Growth rate (%) 338. 8 507. 49. 7 251. 7 396. 3 57. 4 123. 4 191. 2 55. 0 113. 5 162. 8 43. 3 0. 4 6. 9 1 505. 6 9. 4 3. 9 58. 3 0. 5 0. 7 258. 4 1. 4 7. 7 431. 4 0. 3 1. 0 200. 6 3. 8 23. 6 524. 6 10. 9 12. 8 17. 2 1. 2 1. 2 201. 7 2. 1 2. 2 2. 5 6. 8 13. 4 98. 8 2. 1 9. 4 350. 9 4. 0 9. 4 134. 9 1. 0 10. 1 868. 3 2. 2 0. 9 58. 8 8. 7 17. 3 99. 1 1. 4 4. 4 203. 2 58. 3 34. 9 40. 1 80. 3 129. 7 61. 6 6. 7 5. 1 23. 9 82. 8 78. 8 4. 8 7. 6 6. 3 17. 1 0. 2 0. 6 198. 9 0. 3 0. 5 82. 2 3. 9 4. 4 10. 6 29. 5 3. 5 8. 9 1. 6 1. 6 8. 0 0. 7 45. 7 4. 6 2. 1 32. 1 6. 12. 0 5. 5 1. 7 3. 4 4. 6 0. 5 4. 3 2. 9 20. 3 0. 2 15. 1 0. 6 0. 9 1. 2 0. 5 52. 3 9. 5 7. 2 42. 7 9. 0 1. 0 12. 5 6. 5 4. 5 4. 5 0. 6 32. 2 29. 0 31. 3 107. 1 70. 5 65. 0 44. 5 84. 6 28. 8 14. 3 105. 8 251. 9 33. 2 50. 8 91. 5 125. 2 287. 8 31. 3 2. 1 24. 7 644. 5 895. 9 c Greenfield investments 2010 2011 Growth rate (%) 807. 0 780. 4 3. 3 263. 5 229. 9 12. 7 148. 9 145. 2 2. 5 143. 1 142. 2 0. 7 1. 9 3. 7 94. 6 4. 6 2. 8 39. 3 5. 5 4. 2 23. 7 0. 3 0. 5 53. 1 1. 5 1. 6 7. 0 8. 5 7. 3 13. 8 13. 7 13. 6 1. 2 1. 2. 0 95. 8 4. 4 5. 9 32. 6 10. 1 4. 8 52. 2 0. 4 0. 2 43. 4 9. 8 4. 3 55. 8 10. 0 9. 1 8. 9 2. 6 1. 0 61. 7 14. 8 9. 1 38. 6 1. 8 2. 3 27. 1 23. 6 31. 1 32. 2 57. 1 51. 3 10. 2 4. 5 4. 2 8. 0 491. 6 498. 1 1. 3 84. 1 76. 6 8. 9 13. 8 6. 1 55. 7 12. 5 4. 0 67. 7 5. 9 9. 1 55. 0 118. 2 7. 1 43. 2 8. 1 8. 8 14. 5 11. 6 289. 3 52. 0 9. 1 236. 2 84. 6 5. 0 45. 4 11. 7 12. 8 13. 6 7. 7 51. 8 33. 4 126. 9 11. 6 59. 7 11. 6 7. 7 15. 8 3. 8 294. 7 60. 2 6. 6 231. 4 81. 9 3. 9 51. 5 22. 2 10. 7 16. 6 3. 1 52. 3 19. 5 7. 3 62. 8 38. 2 43. 12. 9 9. 1 67. 0 1. 8 15. 7 27. 9 2. 1 3. 2 21. 4 13. 6 90. 7 15. 7 22. 3 59. 7 0. 9 41. 4 Revised. Preliminary estimates by UNCTAD. c Net cross-border M&As are sales of companies in the host economy to foreign TNCs excluding sales of foreign affiliates in the host economy. Note World FDI inflows are projected on the basis of 153 economies for which data are available f or part of 2011 or full year estimate, as of 19 January 2012. Data are estimated by annualizing their available data, in most cases the first three quarters of 2011.The proportion of inflows to these economies in total inflows to their respective region or subregion in 2010 is used to extrapolate the 2011 regional data. Annex 2. Cross-border M&A deals with a value of over US$3 billion in 2011 Value (US$ million) 25 056 7 057 6 041 5 629 4 948 4 800 4 750 4 546 3 895 3 832 3 800 3 800 3 549 Acquired company Industry of the acquired company Host economy Ultimate acquiring company Ultimate acquiring nation France Australia Australia Spain Norway united States Australia Germany Switzerland Spain united States coupled States United StatesGDF Suez ability AXA Asia Pacific Holdings Ltd AXA Asia Pacific Holdings Ltd Bank Zachodni WBK SA Vale SA AIG Star liveliness Insurance Co Ltd Chesapeake Energy Corp. Porsche Holding GmbH Baldor Electric Co Turkiye Garanti Bankasi AS Universal Stud ios Holding 3 Corp OAO Vimm-Bill-Dann Produkty Pitaniya EMI pigeonholing PLCFirst quarter Natural gas transmission Belgium Life insurance policy Australia Life insurance Australia Banks Poland weight-lift ores Brazil Life insurance Japan crude(a) petroleum and natural United States gas Automobiles and other motor Austria vehicles Motors and generators United States Banks Turkey Television broadcasting United States place Fluid milk Russian Federation GDF Suez SA AMP Ltd AMP Ltd Banco Santander SA Norsk Hydro ASA prudent Financial Inc BHP Billiton Ltd Porsche Automobil Holding SE ABB Ltd BBVA GE PepsiCo Inc Citi assort IncServices allied to motion United Kingdom picture production Second quarter Telephone communications, ask out radiotelephone Biological products, except diagnostic substances Land subdividers and developers, except cemeteries Offices of shore holding companies Copper ores Drilling oil and gas wells food preparations Electric work Personal credit instituti ons Radiotelephone communications Italy United States United States United States Australia United States Denmark United Kingdom United States Brazil Brazil Canada Russian Federation Australia United States United States United States Sweden United States BrazilWeather investings Srl 22 382 21 230 Genzyme Corp Centro Properties multitude 9 400 7 800 7 359 7 306 7 206 6 505 6 300 5 524 4 925 4 356 4 000 3 908 3 842 3 560 3 500 3 400 3 117 3 070 Morgan Stanley Equinox Minerals Ltd presumption global Inc Danisco A/S Central Networks PLC Chrysler Financial Corp Vivo Participacoes SA VimpelCom Ltd Sanofi-Aventis SA Blackstone Group LP Mitsubishi UFJ Finl Grp Inc Barrick atomic number 79 Corp Ensco PLC DuPont PPL Corp Toronto-Dominion BankTelefonica SA Cosan Ltd Cliffs Natural Resources Inc Total SA Rio Tinto PLC Unilever PLC Grifols SA Investor Group Investor Group Ventas Inc Sinochem Group Takeda Pharmaceutical Co Ltd BHP Billiton Ltd BP PLC Polyus Zoloto IPIC Rolls-Royce Group plc Solvay SA Bank of Montreal Investor Group Thermo pekan Scientific Inc GE Shareholders Investor Group SABMiller PLC Microsoft Corp Metelem Holding Ltd Teva Pharmaceutical Industries Polymetal International Plc Mitsubishi Corp Chiron Holdings Inc Peabody Energy Corp Volcan Investments Ltd Liberty Global Inc UCL Holding BV Hutchison Whampoa Ltd Grupo calfskin China Investment Corp Level 3 Communications Inc Netherlands France United States Japan Canada United Kingdom United States United States Canada Spain Brazil United States France United Kingdom United Kingdom Spain Singapore United States United States ChinaShell International Petroleum Co Industrial organic chemicals Ltd Consolidated Thompson Iron Iron ores Mines Ltd Crude petroleum and natural OAO Novatek gas Bituminous scorch and lignite Riversdale Mining Ltd surface mining Perfumes, cosmetics, and Alberto-Culver Co other tin preparations Talecris Biotherapeutics Pharmaceutical preparations Holdings Corp Frac Tech Holdings LLC Oil and gas field answers Securitas Direct AB Security systems services Atria Senior Living Group Inc. Peregrino Project,Campos Basin Nycomed International Management GmbH Petrohawk Energy Corp Reliance Industries Ltd OAO Polyus Zoloto Cia Espanola de Petroleos SA CEPSA Tognum AG Rhodia SA Marshall & Ilsley Corp.Parmalat SpA Phadia AB Converteam Group SAS Distribuidora Internacional de Alimentacion SADia SPIE SA Fosters Group Ltd Skype Global Sarl Polkomtel SA Cephalon Inc OAO Polimetall Anglo American Sur SA Kinetic Concepts Inc Macarthur Coal Ltd Cairn India Ltd Musketeer GmbH OAO Pervaya Gruzovaya Kompaniya Northumbrian Water Group PLC ING Groep NV GDF Suez SA Global Crossing Ltd Skilled nursing care facilities Crude petroleum and natural gas Third quarter Pharmaceutical preparations Crude petroleum and natural gas Crude petroleum and natural gas Gold ores Crude petroleum and natural gas Internal combustion engines Manmade organic fibers, except cellulosic National commerci al banks Fluid milk Surgical and edical instruments and apparatus Motors and generators market place stores 13 683 11 776 9 000 6 256 4 964 4 723 4 640 4 095 3 599 3 540 3 200 3 cxl 3 033 10 793 8 500 6 611 6 311 5 499 5 390 5 139 4 949 4 542 4 495 4 223 3 837 3 614 3 259 Switzerland United States India Russian Federation Spain Germany France United States Italy Sweden France Spain Japan Australia United Kingdom Russian Federation United Arab Emirates United Kingdom Belgium Canada France United States United States France United States United Kingdom United States Cyprus Israel island of Jersey Japan United Kingdom United States United Kingdom United States Netherlands Hong Kong, China Colombia China United StatesEngineering services France Fourth quarter Malt beverages Australia Prepackaged Software Luxembourg Radiotelephone Poland communications Pharmaceutical preparations Gold ores Copper ores Surgical and medical instruments and apparatus Coal mining services Crude petroleum a nd natural gas Cable and other yield television services United States Russian Federation Chile United States Australia India Germany Railroads, line-haul operating Russian Federation Water supply Insurance agents, brokers, and service Electric services Telephone communications, except radiotelephone United Kingdom Mexico France Bermuda 3 017 Source UNCTAD. The next issue of UNCTADs Global Investment Trends Monitor will be released in mid-April 2012. The next issue of UNCTADs Investment Policy Monitor will be released in the first workweek of February 2012.