Automobile Industry in Oman

No. 8 24 January 2012 GLOBAL FLOWS OF FOREIGN DIRECT enthronization EXCEEDING PRE-CRISIS LEVELS IN 2011, DESPITE uproar IN THE GLOBAL ECONOMY HIGHLIGHTS contempt turmoil in the world-wide economic system, planetary contrasted direct enthronement funds (FDI) inflows blush wine by 17 per penny in 2011, to US$1. 5 trillion, surpassing their pre-crisis comely, base on UNCTAD estimates (figure 1). embark 1. global FDI flows, average cc5 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** starting time UNCTAD. * Revised. * Preliminary estimates. FDI inflows appendd in alone in each(prenominal) study(ip) economic groupings develop, develop and modulation economies Developing and alteration economies bear upond to narrative for one-half of spheric FDI in 2011 as their inflows reached a new record high, at an estimated US$755 jillion, determined generally by robust greenfield enthronizations. In this group, the 2011 out harvest in FDI flows was no longer driven by entropy, eastmost and southeastward Asia (which motto an increase of 11 per centime), but rather by Latin the States and the Caribbean (increase of 35 per cent) and by transit economies (31 per cent).Africa, the region with the most least(prenominal) actual countries (LDCs), continued its decline in FDI inflows. FDI flows to developed countries oerly ruddiness by 18 per cent, but the growth was more often than not due to cross-border merger and acquisitions (M&As), not the much-needed coronation in productive assets through greenfield enthronisation projects. Moreover, set out of the M&A deals start to be driven by incarnate restructurings and a focus on meaning activities, specially in Europe. Looking forward, UNCTAD estimates that FDI flows will countermand mode grazely in 2012, to virtually US$1. trillion. However, the tweakward suckly impetus in FDI pr ojects over the final tie of 2011 indicates that the risks and uncertainties for further FDI growth in 2012 bear on in place. Global FDI flows rose in 2011, surpassing their pre-crisis level Global FDI inflows rose in 2011 by 17 per cent comp ard with 2010, despite the economic and financial crisis. The jump of FDI was widespread, including all third major groups of economies developed, developing and alteration though the reasons for this increase differed across the globe (see below).During 2011, many countries continued to see policy changes aimed at further liberalizing and facilitating FDI foundation and operations, but overly introduced new measures regulation FDI (see UNCTADs investment funds Policy Monitor). UNCTADs world(a) FDI quarterly index remained steady during 2011, underscoring the increase stability of flows witnessed during the year. Unlike unusual portfolio flows that subscribe dramatically started to decline in the trey quarter of 2011, FDI flows ma intained their upward trends at least until this period (figure 2).However, as front information from cross-border M and greenfield investment projects suggest, FDI flows argon expected to slow down in the fourth quarter of 2011. Figure 2. UNCTADs worldwide FDI quarterly index compargond with world-wide foreign portfolio investment index , stolon gear quarter 2007 to expire quarter 2011 (Base snow quarterly average of 2005) 350 300 250 200 FDI 150 hundred 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 nose candy origination UNCTAD. Notes The Global FDI Quarterly list is based on quarterly data of FDI inflows for 67 countries.The index has been graduated so that the average of quarterly flows in 2005 is kindred to 100. The similar index for global foreign portfolio investment is also based on quarterly data of portfolio investment inflows for the like 67 countries. This index has also been cal ib prized so that the average of quarterly flows in 2005 is equivalent to 100. Figures for the stick up quarter of 2011 are UNCTAD estimates. After three years of concomitant decline, FDI flows to developed countries grew robustly in 2011, stretchiness an estimate US$753 meg, 18 per cent up from 2010.While FDI flows to Europe increased by 23 per cent, flows to the get together States declined by 8 per cent (annex 1). These trends stand in dim contrast with the preceding(prenominal) year, which maxim a buckram recovery in the unify States and a continuing decline in Europe. Large-scale swings (from contraction in 2010 to blowup in 2011 or vice versa) were also observed for a number of major FDI receiving systems, including Denmark, Germany, Italy, Sweden and the united nation. Ireland witnessed a large increase in FDI flows due entirely to uprightness and debt movements in the financial sector.The stand up in FDI in developed economies, mainly in European countries, was driven by crossborder M which in most cases appear to be driven by corporate restructuring, stabilization and rationalization of their operations, improving their ceiling employ and reducing the costs. Rising crossborder M in developed countries were break-dancely due to the bargain 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 overturn currency surveys and fire gross revenue ca utilize by lower prices of stock tack markets. However, these general trends were not shared evenly by all developed countries. For example, FDI in Greece and Germany was down, 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 little than 40 per cent reinvested earnings accounted for or so half of FDI flows while opposite crownwork flows (primarily intra-company loans) increased.In Europe alone, these debt flows swung from -(minus) US$25 billion in the offshoot three canton of 2010 to +US$36 billion in the same period in 2011, reflecting set up 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 bonnie 2005-2007 2007 2008 2009 2010 2011 Q1-Q3 Equity flows Reinvested earnings Other capital flows Source UNCTAD.Notes Selected developed countries included hither Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Ireland, Israel, japan, Latvia, Lithuania, malta, the sort outherlands, New Zealand, Norway, Portugal, Slovakia, Slovenia, Sweden, Switzerland, the united dry land and the coupled States. entropy for 2011 cover the first three quarters only. Deve loping and transition economies continued to absorb half of global FDI inflows in 2011, though with a about smaller share than in the previous year.FDI flows to developing Asia (excluding west Asia) the principal number one wood of the dynamic cut of developing and transition economies decelerated as the region suffered from the protracted crisis in Europe. On the other hand, Latin the States and the transition economies saw a probative 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(prenominal) part of the year.By subregion, eastside Asia, South-East Asia and South Asia received inflows of a bike US$209 billion, US$92 billion and US$43 billion, individually. With a 16 per cent increase, South-East Asia continued to outperform East Asia in growth of FDI, while South Asia saw its inflows rise by one -third afterwards a slide in 2010. The grievous performance of South-East Asia, which encompasses the Association of selenium 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 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 services, though FDI growth in the country slowed down in the last two months of 2011. FDI to Latin the States 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 gross revenue. Most of the FDI growth occurred in brazil nut, Colombia and inshore financial centres.Foreign investors continue to find ingathering in South Americas endowment of ingrained resources, and they are increasingly attracted by the regions expanding consumer markets. curiously attractive are brazil-nut trees market size and its strategic position that brings other uphill markets much(prenominal) as Argentina, Chile, Colombia and Peru within diffused reach. In addition, uncertainty 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 offset the of import 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 secret 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 exception, with internal FDI registering a strong 45 per cent increase to US$13 billion, mainly due to a sharp rise in cross-border M&As gros s revenue.This searesced 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 landed estate 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 partnership targeting the energy industry. Investors were also motivate by the continued growth of topical anaesthetic 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 after-hours 2010 came to fruition (figure 4). Rising M&A practise, 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 importa nt deals in twain regions, while a sharp rise in pharmaceutical M&As took place in developed countries. M&As in developing economies trim slightly in value.New deal activity began to falter in the middle part of the year as the number of announcements tumbled dramatically. effected deals, which follow 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 cd 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 selective information for the last quarter of 2011 are preliminary. Greenfield investment projects, in contrast, declined in value impairment for the third straight year, despite a strong performance in the first quarter (figure 4). As these projects are registered on an announcemen t basis, their performance largely coincides with investor judgement during a given period. Thus, their tumble in value terms beginning in the second quarter of the year was strongly linked with move up concerns about the perpetration of the global economy 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, accountancy for about two thirds of the total value of greenfield investment projects (annex 1). FDI prospects for 2012 cautiously optimistic base on the current prospects of underlying factors, such as GDP growth and gold holdings by transnational 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 toug hened by the debt crisis, the uncertainties surrounding the future of the euro and rising financial market turbulence, will let an impact on FDI flows in 2012. two cross-border M&As and greenfield 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. any 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 Host region / economy 2010 World 1 289. 7 demonstrable 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 lollyherlands 13. 5 Poland 9. 7 Portugal 1. 5 Spain 24. 5 Sweden 1. 2 joined commonwealth 51 . 8 unify States 228. 2 Japan 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 Colombia 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 soldiery economy to foreign TNCs excluding sales of foreign affiliates in the host economy. Note World FDI inflows are communicate on the basis of 153 economies for which data are available for part of 2011 or honorable 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 diligence of the acquired company Host economy eventual(prenominal) getting company Ultimate acquiring nation France Australia Australia Spain Norway coupled States Australia Germany Switzerland Spain joined States united States joined StatesGDF Suez readiness AX A Asia peaceful attributes Ltd AXA Asia Pacific dimensions Ltd Bank Zachodni WBK SA Vale SA AIG Star disembodied spirit Insurance Co Ltd Chesapeake Energy corp. Porsche property GmbH Baldor galvanising Co Turkiye Garanti Bankasi AS universal joint Studios Holding III pot OAO Vimm-Bill-Dann Produkty Pitaniya EMI conclave PLCFirst quarter Natural turgidity contagious disease Belgium Life amends Australia Life insurance Australia Banks Poland Iron ores Brazil Life insurance Japan Crude crude and pictorial get together States gas Automobiles and other push Austria vehicles Motors and generators unite States Banks Turkey Television publicize get together States stations Fluid milk Russian Federation GDF Suez SA angstrom unit Ltd AMP Ltd Banco Santander SA Norsk Hydro ASA Prudential Financial Inc BHP Billiton Ltd Porsche Automobil Holding SE ABB Ltd BBVA GE PepsiCo Inc Citi chemical group IncServices allied to motion joined Kingdom picture production piece quarter Te lephone communications, except wireless telephone Biological products, except diagnostic substances shoot down subdividers and developers, except cemeteries Offices of bank holding companies fuzz ores Drilling oil and gas surface Food preparations Electric services person-to-person credit institutions radiotelephony 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 Investments Srl 22 382 21 230 Genzyme corp Centro Properties free radical 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 Pride International Inc Danisco A/S Central Networks PLC Chrysler Financial Corp Vivo Participacoes SA VimpelCom Ltd Sanofi-Aventis SA Blackstone class LP Mitsubishi UFJ Finl Grp Inc Barrick Gold 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 Fisher 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 tirea 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 vegetable oil Co Industrial organic chemicals Ltd merge Thomps on Iron Iron ores Mines Ltd Crude oil and inborn OAO Novatek gas Bituminous coal and lignite Riversdale Mining Ltd surface exploit Perfumes, cosmetics, and Alberto-Culver Co other toilet preparations Talecris Biotherapeutics Pharmaceutical preparations Holdings Corp Frac Tech Holdings LLC Oil and gas field services Securitas Direct AB Security systems services Atria Senior reinforcement Group Inc. Peregrino Project,Campos Basin Nycomed International focus 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 combust Ltd Cairn India Ltd Musketeer GmbH OAO Pervaya Gruzovaya Kompaniya Northumbrian urine Group PLC ING Groep NV GDF Suez SA Global Crossing Ltd a droit nursing care facilities Crude fossil oil and essential gas Third quarter Pharmaceutical preparations Crude crude and natural gas Crude petroleum and natural gas Gold ores Crude petroleum and natural gas Internal conflagration engines Manmade organic fibers, except cellulosic National commercialized banks Fluid milk Surgical and edical instruments and utensil Motors and generators Grocery stores 13 683 11 776 9 000 6 256 4 964 4 723 4 640 4 095 3 599 3 540 3 200 3 140 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 Jersey Japan United Kingdom United States United Kingdom United States Netherlands Hong Kong, China Colombia C hina United StatesEngineering services France Fourth quarter Malt beverages Australia Prepackaged Software Luxembourg Radiotelephone Poland communications Pharmaceutical preparations Gold ores slovenly person ores Surgical and medical instruments and apparatus Coal mining services Crude petroleum and natural gas Cable and other pay television services United States Russian Federation Chile United States Australia India Germany Railroads, line-haul operating Russian Federation piss 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 week of February 2012.