According to the Mediterranean Investment and Partnership Observatory ANIMA-MIPO, the number of Foreign Direct Investment (FDI) projects announced in MED countries begins to increase again with 392 projects detected during the first semester 2010 against 532 for the whole year 2009, i.e. +47%.

2010 is consistent with the trends registered in 2009: reassured by the good economic forecasts for MED countries (Arab States should register a GDP growth of 4% in 2010 according to IMF), foreign companies boost their investment planning, but with more modest and less risky FDI projects.

One major modification however occurs during the first half of 2010: the origin of FDI inflows varies significantly, emerging countries becoming a new inescapable player for FDI in the MED countries. They bring 29% of FDI announced inflows during S1 2010 (3.9 bn €), against 11% on average since 2003. China comes first in this group with a diversified portfolio of sectors (energy, distribution, real estate, automobile, water, etc.) benefitting to Egypt, Israel, Syria and Turkey.

Emerging countries thus change the usual winner list by stealing the second place from the Gulf countries. European companies, which have brought over 40% of FDI inflows in the region since 2003 and resisted well in 2009 with 54% of FDI announcements, provide only 4.1 billion € during S1 2010 (30% of total inflows). This European falling back nevertheless probably does not presage a disengagement from the region: European investors still lead the way in number of projects announced, with 42% of FDI projects and half of the partnerships during S1 2010.

Situation in Maghreb leads to little optimism: +29% in number of projects but 20% decrease of inflows during S1 2010 compared with 2009. The 1.7 billion € announced in a semester represents a very low level compared to the average amount of 8.8 billion € per year since 2003. The decline reaches 60 to 80% for Algeria, Libya and Morocco, while Tunisia is an exception with a 3.5 fold increase of the FDI inflows thanks to Emirati Gulf Finance House (GFH) which launches the construction of Tunis Financial Harbour after the acquisition of dedicated land in 2009. Without this announcement (3 billion dollars to be invested within 7 years), Tunisia would experience a decline similar to its Maghrebian neighbours. Figures are more contrasting in terms of number of projects detected during S1 2010: Tunisia leads by far (+76% compared with 2009); Morocco also does well (+29%) and status quo prevails in Libya. The 23% decline in Algeria is wholly imputable to the energy sector, which has accounted for one third of the Algerian FDI portfolio since 2003, whereas projects in other sectors are stable compared to 2009. Maghreb is thus especially affected by the decrease in the average size of FDI projects.