THEfDiREPORT2023Globalgreenfieldinvestmenttrends•Profilecompanieswithinyourtargetsectorscontactuson+44(0)2077756667oratREQUEST•ReceiveearlywarningindicatorsthatacompanymaybeexpandinginternationalyfDiInteligence.com/marketsdemoAFREEODEM•MUndaersktandetheskemyFDIatrenrdstinmdareketcsanidssecitoorsnsoncrossborderinvestment•DevelopyourinvestmentpromotionstrategyusingrealtimedatafDiMarketsisthemostcomprehensiveservicetrackingcrossbordergreenfieldinvestmentForafreedemonstrationofourtools,acrossallcountriesandsectorsworldwide.Thisservicecanbeusedto:contactuson+44(0)2077756667orat•IdentifytargetinvestorsforyourkeymarketsfDiIntelligence.com/marketsdemo•Profilecompanieswithinyourtargetsectors•Receiveearlywarningindicatorsthatacompanymaybeexpandinginternationally•UnderstandthekeyFDItrendsinmarketsandsectors•DevelopyourinvestmentpromotionstrategyusingrealtimedataTHEfDiREPORT2023EDITOR’SCOMMENT3FDIbecomesmirroroffrayingglobalorderThefDiReport2023providesauniqueInvestmentsinhydrocarbonsDistributedrenewableenergygenerationisalessconspicuous,glimpseintothefrayingglobalorder.Basedandrenewableenergybutequallydisruptingphenomenon.So-called‘prosumers’—ondatafromfDiMarkets,theproprietarynolongerlookexclusiveindividualsthatengagewiththepowergridasbothproducersdatabaseoffDiIntelligencethattracksandconsumers—havebeeninstallingdecentralisedrenewablecrossbordergreenfieldinvestment,thesecurityactivities.Westernoilandgasfirmsscrambledtoaddnewenergysystems(mostlysolar)atunprecedentedspeedinplacesreporttakesreadersonauniquejourneyassetstotheirportfolioandplugtheholeleftbyunsustainablelikeChinaandBrazil.throughtheparadigmshiftthattheUkraineRussiansupplies.Afteryearsofflagginginvestmentlevels,activitywarhasaccelerated.intheoilandgassectorbouncedbackandfounditswaybackintoElectricmobilityisanothermajorcorollaryoftheenergythetop10biggestrecipientsofglobalforeigninvestment(seetransition.E-mobilitytechnologieshavebecomeparticularlyThewaveofmegainvestmentprojectspage20–21).strategicandamaintargetofWesternindustrialpolicies.Inevitably,thathasbeenmountingintheUS,andtoalesserextentininvestmentintotheproductionofelectricvehiclesandbatteriesEurope,isthemostglaringeffectofthatshift.SincethestartoftheEnergysecurityhasaddedanewmeaningtotheenergyhasbeenanothertremendousdriverofFDIin2022(seepage16–Covid-19pandemic,Westernpolicy-makershavefeltincreasinglytransitiontoo.Throughitslens,investmentsinhydrocarbonsand17).However,thechallengetosourcethecriticalmineralsneededanxiousabouttheoverdependenceoftheireconomiesonChinarenewableenergynolongerlookexclusive,butcomplementary.topowerupthesetechnologiesremainscumbersome.Theforcriticaltechnologiesandminerals.WhenRussiainvadedAsmajoreconomicblocsharbourambitionstodecarbonisetheirminingsectorhasyettomatchthelevelsofcapitalinvestmentweUkraineonFebruary24,2022,theysteppedupeffortstodesigneconomies,theyneedrenewableenergytocleanuptheirenergytrackedinthee-mobilityvaluechain(seepage24–25).industrialpoliciesalignedwiththeresulting,increasinglyfractiousmatrix,alongwithastable,diversifiedsupplyofhydrocarbonstogeopoliticalorder.secureatransitionthatwilltakedecades.ThefDiReportstartedoutasareferencetoolfortrackingthebehaviourandinvestmentdecisionsofmultinationalcorporations.LuredbythegenerousincentivespromisedbythelikesoftheInthisperspective,governmentswillhavetocrowdinanyIthasnowgrownandevolvedtogaugetheshiftingsandsofUSInflationReductionActandtheEUGreenDealIndustrialPlan,availableenergyresource.Whileoilandgasinvestmenthasgeopoliticsandthisfeedsintosaiddecisions.Intheseuncertainmultinationalenterpriseshavecommittedbillionsofdollarstobouncedback,foreigndirectinvestment(FDI)inrenewableenergytimes,thefDiReport2023,anditsdata,haveneverbeenrelocatingpartsoftheirproductionbase.Economiesofscaleandhasneverbeenhigher(seepage6–7).morevaluable.automationareinevitablecomponentsoftheircalculus.Theyarecostlydecisions,however,thatcallformajorupfrontinvestment.JacopoDettoniistheeditoroffDiIntelligence,theFinancialTimes’Neverbeforehavewewitnessedsuchahighnumberofprojectsspecialistunitdedicatedtoforeigndirectinvestmentworthmorethanonebilliondollars(seepage12–13).Providedthemajorityoftheseprojectsliveuptoexpectations—certainlynotaforegoneconclusion—othercompaniesintheirvaluechainwillfollowsuit,givingnewimpetustothereshoringwave.TheUkrainewarhasalsoshoredupinvestmentinenergyTHEfDiREPORT2023GLOBALOVERVIEW4GlobaloverviewGlobaloverviewTopsourcecountry2022FDIsnapshotInternationalinvestorsannouncedmorethan16,000foreignUSdirectinvestment(FDI)projectsin2022,accordingtofDiMarkets,TotalcapitalinvestmentthegreenfieldinvestmentmonitoroftheFinancialTimes.Theseprojectsrepresentanestimatedvalueof$1.155tn,withmorethan$1.155tn2.2millionjobsbeingcreated.ThepaceofFDIin2022showssignsofongoingrecoveryfollowingtheshockeffectoftheCovid-19TotalProjectsTopsectorpandemic,withthenumberofprojectsincreasing16%andthepledgedcapitalinvestmentrisingby64%from2021.16,040RenewableenergyLastyearwasonecharacterisedbyFDImegaprojects,witharecordnumberofprojectsworthatleast$1bnofcapitalTotaljobscreatedinvestments.Atotalof159suchprojects(includingestimates)wereannouncedin2022—thehighestlevelinthepastdecade.2,277,002TheUSwasthetopdestinationcountryforthenumberofFDITopdestinationcountrymegaprojectsasthecountryattractedahighnumberoflarge-scaleinvestmentprojectsinsemiconductorsandbatteries.USHowever,itwasEgyptthatrankedasthelargestdestinationforSource:fDiMarketsmegaprojectsbyamountofcapitalinvestmentthankstoahandfuloflarge-scaleprojectsingreenhydrogen.IncludesestimatesbycapitalinvestmentInadditiontothis,theUSwasthetopsourceofoutboundFDIin2022,with$207.2bnrecordedacross3647projects.Ataregionallevel,westernEuropeattractedthehighestnumberofFDIprojectsin2022,at5250.Intermsofcapitalinvestment,bothwesternEuropeandAsia-Pacificattractedaround$279bn,withthelattertakingfirstplacebyjust$229.9m.Keytrends•Forafourthyearrunning,therenewableenergysectorhasattractedthehighesttotalcapitalinvestmentglobally.•InboundFDIforChinadeclinedfurtherin2022.Comparedto2019,thenumberofprojectsintoChinalastyearweredown60%andcapitalinvestmentwasdown68%.•FollowingRussia’sinvasionofUkraineinearly2022,thenumberofannouncedFDIprojectsintoRussiaplummetedtoonly13.THEfDiREPORT2023GLOBALOVERVIEW5ThebignumbersTheUnitedStatesAsia-PacificretaineditsspotasthewasthetopdestinationIN2022...leadingdestinationcountry,regionforFDIin2022,attracting$158.1bnofFDIwhenmeasuredbycapital16,040Foreigninvestorsannouncedatotalin2022,anincreaseof73%investment.Theregionattracted$279.7bnworthof16,040foreigndirectinvestmentfrom2021.ofcapitalinvestmentprojectsduring2022.inflowslastyear.15.7%In2022,thenumberofFDIprojectsWesternEuropereboundedby15.7%from2021.attractedthehighestnumberofFDIprojects2,277,002AnnouncedFDIprojectscreatedmorein2022,with5250than2.2millionjobs.announcementsrecorded.THEfDiREPORT2023SECTORANALYSIS6The2022In2022,capitalinvestmentintherenewablethird-mostcapital-intensivesector,withsuchastherenewableenergysectorandinvestmentenergysectorreacheditshighestevervalueanestimated$91.6bninvestedacross139cathodemanufacturingforbatteries,made2022matrixsincerecordsbeganin2003.Forafourthyearprojectsin2022.Notably,lastyearsawaastrongyearformetals.inarow,thesectorhasattractedthehighestrecordamountofcapitalinvestedinthetotalcapitalinvestmentglobally,withavalueofsemiconductorssector,8%morethan2021Theelectroniccomponentssectorhasalso$343.6bnacross527projects—cementingitsandalmostninetimestheamountinvestedinwitnessedasharpincreaseincapitalinvestmentpositionabovecoal,oilandgaswhichwaslast2019,highlightingtheracetosecurecriticalsince2019.Atotal476projectsatavalueoftopin2018.supplychainssincetheonsetoftheCovid-19$69.7bnwereannouncedin2022—6%ofallpandemic.Risinggeopoliticaltensionscapitalinvestedin2022andmorethandoubleCapitalinvestmentinrenewablessawabetweentheUSandChina,aswellasthe$32.3bninvestedin2019.Investmentinthe158%increaseoverthepastyear.At30%,itsupplychainfragilitymadecompaniesandbatteriessubsector,avitalcomponentofelectricwastheonlysectortotakemorethana10%countriesrethinktheirinvestmentstrategiesinvehiclessupportingtheenergytransition,marketshare.Itisalsoleadinginabsolutethissector,shiftingtowardsamoreaccountedformorethan78%ofcapitalterms,asthesectorattracted$210bnlocalisedapproach.investmentinthesectorin2022.morethanthepreviousyear.Severalmegainvestments(projectsworthmorethanThesoftwareandITservicessectorsawnearlyAsglobalairtravelreboundedasthe$1bn)contributedtothesector’sstrong290,000morejobscreatedin2022thanin2021,Covid-19pandemicsubsided,capitalinvestedperformance.Egyptwasabletosecure19markinga108%increase.The41%year-on-yearintheaerospacesectorwitnessedthefourth-suchinvestmentsfromcompaniesestablishingincreaseinthenumberofannouncedforeignlargestincreasein2022ofaround154%,togreenhydrogendevelopments,mostlyinitsdirectinvestment(FDI)projectsinthesectorreachavalueofnearly$6bn.MeanwhiletheSuezCanalEconomicZone.meansthatoneineveryfourprojectsannouncedhotelsandtourismsectorsawa34%riseinin2022wasinsoftware&ITservices.Thesectorprojectnumbersoverthepastyear,althoughThecoal,oilandgassectorrankedinattractedaround$69bnincapital—81%morecapitalinvestmentinthesectorwasalmostsecondplace,withatotalestimatedcapitalthanin2021and76%morethanin2019.unchangedin2022.Thesectorremainswellinvestmentof$104.8bnin2022.Whilethisbehindits2019figures,withprojectnumbersrepresentsa538%increaseoverthepreviousFollowingaperiodofstronggrowthbetweendown70%,capitalinvesteddown84%andjobyear,2021wasarecordlowforthesector2019and2021,capitalinvestmentinthecreationdown74%.andtherenewedinvestmentismoreofcommunicationssectordecreasedbymorethanareturntoformforcoal,oilandgasprojects,onefifthto$53.5bnin2022.ThenumberofFinally,capitalinvestmentintherealestatewith2022capitalinvestmenttotalling85%announcedFDIprojectsdroppedby24%tosectorhasincreasedby28%andremainsofthe2019value.656asthesuddenpandemic-fuelleddemand$2.2bnshortofthepre-pandemiclevelofforITinfrastructuredevelopmentseemsto2019.ResidentialandcommercialbuildingTheenergycrisiscausedbythewarinhavewaned.constructionmadeupthebulkofcapitalUkraineandWesternsanctionsstronglyinvestmentinthesectorandsurpassedtheircontributedtothisincrease,ascountriesThemetalssectorattracted$55bnin2022.pre-pandemiclevelsof2019,increasingby48%—particularlyEuropeannations,previouslyThis210%increaseon2021isthethird-largestand5%respectively.However,capitalinvestmentheavilydependentonRussianoilandpercentageincreaseinabsoluteterms,aftertheintheindustrialbuildingconstructiongas—soughttodiversifytheoriginofrenewableenergyandcoal,oilandgassectors.subsectorhasdecreasingby41%overthetheirfossilfuels.Thereboundofglobalmanufacturingaswellaspastyear,followinga2021surgefuelledbyanthemetalsector’scentralityforothersectors,e-commerceboom.ThesemiconductorssectorwastheTHEfDiREPORT2023SECTORANALYSIS7TOP10SECTORSIN2022BYCAPITALINVESTMENT(US$BN)SEMICONDUCTORSREALESTATETRANSPORTATIONRENEWABLEENERGYSemiconductors&otherResidentialFreight/DistributionelectroniccomponentsbuildingServices$32.8bn$91.6bnconstruction$27.4bnWindelectricpowerCommercialIndustrialWarehousingPipeline$111.3bn&institutionalbuilding&storagetransportationconstruction$8.5bnHydrogenandbuilding$13bnofcrudeoilemergingcleantechconstructionAirtransportation$3.5bn$5.3bn$175.2bn$22bnOther(Transportation&Warehousing)ELECTRONICCOMPONENTSRealestateservices$1.8bn$1bnBatteriesWater$54.3bntransportation$1.4bnRailtransportation$0.7bnAllotherMETALSNonferrousSteelproductsAlumina&Otherelectricalmetal$7.3bnaluminiumfabricatedequipment&Iron&productionandcomponentssteelmillsproduction&Copper,nickel,processingmetal&ferroalloyprocessinglead,&zincminingproducts$8.5bn$16.7bn$4.9bn$8.2bn$6bn$3.3bnAudio&videoSolarelectricpowerBiomassequipmentIronoreminingGoldore$42.9bnpower(Electronic$2.2bn&silver$11.4bnoreminingcomponents)Othermetaloremining$1.8bn$4.4bn$2bnCOMMUNICATIONSAUTOMOTIVEOEMMarineelectricpowerSOFTWARE&ITSERVICES$2.3bnCOAL,OIL&GASSoftwareCustomcomputerDataprocessing,publishers,programminghosting,&relatedPetroleumNatural,servicesAutomobilesrefineriesliquefiedandexceptservices$30bn$7.4bncompressedvideo$23.4bngames$42.2bngasOil&gasextraction$6.3bn$25.9bnOtherInternet$79.8bn(Software&publishing&FossilfuelOtherpetroleumITservices)broadcastingVideogames,Motionpictureelectricpower&coalproducts&websearchapplicationsCommunications&soundrecordingLighttrucks&Heavyduty$8.1bnanddigitalequipmentutilityvehiclestrucks$5.7bn$1.7bn$6.8bn$4bnindustries$1.8bncontent$2.3bn$2.3bnNuclearelectric$3.7bnpowergeneration$1.5bnSource:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023SECTORS8GlobalGovernmentsandinvestorsarerespondingtoCHART1:GREENFIELDCLIMATEencesinthecompositionofclimateFDIthatcompetitiontheglobalsustainabilityimperative.FDIBYTOP10DESTINATIONthetopcountriesareattractingandthelevelforclimateGovernmentsincreasinglyseesupportforCOUNTRIES,2021/22ofcompetitionbetweencountriesfordiffer-investmentclimateinvestmentasnotonlynecessarytoentpartsofthevaluechain.heatsupreducingcarbonemissions,butalsotocatalyseanewwaveofeconomicdevelop-Chart2showsthebreakdownofclimateFDIHenryLoewendahlment.ThisblurringofclimatechangegoalsintheleadingrecipientsbetweenrenewableCEO,WavteqGroupandeconomicdevelopmentgoalshasenergyFDI(primarilysolarandwindenergy,andsparkedglobalcompetitionforclimateinvest-hydrogenfacilities)andallotherclimateFDIment,andaccusationsof‘beggar-thy-neigh-Marketshare%Capitalinvestment(primarilymanufacturingsupplychains).bour’andmercantilistpoliciesbetweenthe($bn)majortradingblocs.Inmanyoftheleadingdestinationsfor16.73%Egypt110climateFDI,thisisalmostentirelybasedonIn2005,lessthan2%ofglobalgreenfieldattractingtheelectricitygenerationandforeigndirectinvestement(FDI)wasinactivi-15.90%UK104hydrogenfacilities.Thesetypesofinvest-tiesrelatedtoclimatechangeandtheenvi-mentarelesscompetitiveacrosscountriesronment(climateFDI).By2018,climateFDI12.45%UnitedStates82(althoughthereiscompetitionforfinancialhadgrownconsiderably,butstillaccountedcapital)beingprimarilybasedontheinvest-foronly12%ofglobalFDI.Since2020,there6.79%Australia45mentprojectsreadytooffer(IPROs)ineachhasbeenexplosivegrowthinclimateFDI;country,suchassolarandwindauctions.almost40%(39.4%)ofallglobalcapitalinvest-5.82%Spain38mentingreenfieldFDIprojectsin2022wasBycontrast,Hungary,China,Canada,climateFDI,withtotalinvestmentapproach-3.90%Italy26MexicoandtheUSarebyfarthemostspecial-ingcloseto$500bn.isedcountriesinnon-electricitygenerating2.61%Brazil17climateFDI,especiallyinthemanufacturingThelocationofclimateFDIhasbeenverysupplychain.TheseFDIprojectsaremuchconcentrated.Overthetwo-yearperiodfrom2.41%Vietnam16morecontestableascompaniesestablish2021/22,thetop15countriesattractedmoreglobalorregionalexportplatforms,andtherethanthree-quartersofclimateFDI(seechart2.25%Morocco15ismuchmorecompetitionforthesemobile1).In2022,investmentbecameevenmoreinvestments.concentratedwiththetopfivecountries2.02%Hungary13attracting65%ofglobalFDI.Governmentshavebeenprovidinginvest-29.13%Others191mentincentivesfordecades.ThesesubsidiesOfthetop15countries,37%ofFDIfromhavegenerallybeenalignedwiththesector2021/22wenttoemergingmarketsand63%Source:fDiMarketsandlocation’sprioritiesandreflecttheleveltodevelopedeconomies,althoughmorethanNote:Includesestimatesofcompetitiontowininvestments.Thereishalfofthecountriesinthetop15wereemerg-generallylesscompetitiontowinrenewableingmarkets.energyprojectsfocusedonelectricitygenera-tionastheyaremoresupplydriven.TheIncreasingcompetitionforinvestmentcompetitionismoreaboutwhichcountriesThegreenfieldFDInumbersbeliemajordiffer-andstatescanofferagoodpipelineofinvest-ableIPROsforinvestors.However,giventheTHEfDiREPORT2023SECTORS9globalimperativetoreducecarbonemissionsdevelopmentfromincreasedinvestment.tradepolicy,butapivotalmomentinincreas-tothegridandtherearedelaysofmorethanareflectedinnationaltargets,renewableWhileChinaandtheUSarebeingaccusedinggovernmentcommitmentacrosstheyearforvitalcomponentsfromChina.InbothenergyprojectsareheavilysubsidisedindevelopedworldtofinanceclimateFDIandtheEUandUK,itistakinguptofouryearstomanycountries.ofusing‘beggar-thy-neighbour’policieshelptoslowdownthepaceofclimatechange.getplanningconsentforrenewableenergythroughunfairlysubsidisingcleantechindus-projects.TheEUdoesplanstoreducethistoThereismorecompetitionforFDIfortriesandtherebyshiftinginvestmentandWhilethesubsidyprogrammesaretwoyearsandtheUKtooneyear.manufacturingprojectsintheclimateFDIglobalvaluechainstotheircountries,thereiswelcomenewstoaccelerateclimateFDIinthesupplychains,suchastheproductionofamuchbiggerpicturethatisslowingdownthreeregionsoftheworldthatareresponsi-TheEnergyTransitionsCommissionesti-cleantechequipment.Whiletheseprojectscarbonemissionsandreducingthepaceofbleforthevastmajorityofcarbonemissionsmatesthattheworldcouldmissoutonuptotendtogravitateclosetotherenewableclimatechange.Arguably,thesubsidieswar—US,EuropeandChina—theyarenot3500terawatthoursofcleanelectricitygener-energyelectricitygenerationprojects(espe-overcleanFDIisa‘racetothetop’ratherthanenough.Theregulatoryenvironmenthasnotationfromwindandsolarin2030(ashortfallciallyinthewindsector,giventhecostsofa‘racetothebottom’,andtheUSadministra-caughtupwiththechangeinpolicytargetsofmorethan20%)ifkeybarrierstowindandmovinglargeandbulkywindblades,turbinestionisrightinthattheEUshouldoffermatch-andsupportingsubsidyframeworks,whichissolardeploymentarenotaddressed.andtowers),theseprojectsoftenreceivehighingsubsidiesratherthancomplainabouttheresultinginhugedelaysforinvestorsbeingsubsidiesduetothecompetitiontoattractIRAdivertinginvestment–theEUpasseditsabletoimplementtheirclimateFDIprojects.GovernmentsmustprioritiserenewableglobalvaluechainsandthelargeeconomicChipsActonApril19.Atthesametime,tradefrictionswithChinaenergyprojects,streamlinepermitapprovalsdevelopmentimpacttheseinvestmentscanhavecreatedsupplychainbottlenecks.andenablekeycomponentstobeimported,behigh.Whattheworldneedsismuchmoreortherealisationofrenewableenergycapac-climateFDI.WhenwelookbackattheIRAIntheUS,itcantakemorethanfouryearsitywillbetoolowtohitcarbontargetsandAccordingtodatafromIncentivesFlow,decadesfromnow,wewillnotseeitasunfairtogetarenewableenergyprojecthookedupprovidethegreenenergythatelectricvehi-betweenJanuaryandMarch2023,theaveragecles,batteries,windandsolarcomponents,incentiveawardedperjobcreatedinthreeCHART2:PROPORTIONOFCLIMATEFDI2021/22THATISRENEWABLEandhydrogenproductionneed.countries(Canada,SpainandtheUS)thatareENERGYVERSUSOTHERACTIVITIESsuccessfullycompetingforrenewableenergyThechallengestoattractandimplementinvestmentsandrelatedglobalvaluechains100%climateFDIarefurtheraccentuatedindevel-wasverysimilar,ataround$60,000perjob—opingcountries,whonotonlyoftenlackthefarhigherthantheaverageincentives80%zonedsitesandelectricityinfrastructuretoawardedinmostothersectors.Asapercent-fast-trackinvestment,butalsocannotsubsi-ageofcapitalinvestment,governmentsin60%diseinvestorsasindevelopedeconomies.FarCanadaandSpainawardedincentivesaroundmoresupportisalsoneededfordeveloping20%ofcapitalinvestmentcomparedtoless40%countriestoattractclimateFDI.than10%intheUS.20%ThereisglobalcompetitionforclimateMobilisingclimateFDI:subsidiesareFDI,whichisratchetingupthesubsidiesnotenough0%beingofferedtocompanies.Thisisaccelerat-TheUSInflationReductionAct(IRA),andEUingclimateFDIandifgovernmentscanmakeandChinesesubsidyprogrammesthatprovideHungarytheregulatorychangesneededsoprojectstensofbillionsofdollarsforclimaterelatedChinacanbeimplementedmuchfaster,itisstillinvestmentsaregame-changersinaccelerat-possibleforFDItomakeamajorcontributioningclimateFDIandtheassociatedeconomicCanadatoslowingdownthepaceofclimatechangeMexicowhileatthesametimedeliveringsubstantialeconomicdevelopmentbenefits.USBrazilGlobalSpainIndiaIndonesiaVietnamUKMoroccoAustraliaEgyptItalySource:fDiMarketsNote:IncludesestimatesOthercleantechRenewableenergyTHEfDiREPORT2023ASIAPACIFIC10Asia-PacificTable1Keytrendsin2022include:FDIINTOASIA-PACIFICBYPERCENTAGECHANGEON2022BYPROJECTNUMBERS•Foreigndirectinvestment(FDI)intotheAsia-Pacific(APAC)regionPROJECTNUMBERS2022grewin2022,withtheregionseeinga65%increaseincapitalexpenditurefrom2021,reaching$279.7bn.Inthesameperiod,theCountryProjects11.4%11.5%numberofannouncedFDIprojectsincreasedbymorethanathirdto3475.India994CHINAHONGKONGJAPAN-24.3%•IndiawasthemostattractivedestinationcountryintheregionbyAustralia420asignificantmargin,experiencinga126%increaseinthenumberof125.9%announcedFDIprojectscomparedto2021.Atotalof994India-Singapore384INDIAboundprojectswererecordedin2022—45%higherthanitspre-pandemicperformancein2019.China314•CapitalexpenditureintoIndiaalsoincreasedfrom$16.1bninJapan1942021to$75.8bnin2022,accountingfor27%ofthetotalrecordedinvestmentintheAPACregion.MajorprojectsintothecountryVietnam175includedHonHaiPrecisionIndustry’ssemiconductoranddisplaycomplexinthestateofGujarat,India($19.5bn)andPetronas’sMalaysia143renewablehydrogenenergyplantinMangalore,India($3.8bn).Philippines1314.3%•InboundFDIforChinadeclinedfurtherin2022,withdecreasesinthenumberofannouncedFDIprojectsnumbers(24%),capitalSouthKorea98SOUTHKOREAexpenditure(44%)andjobcreation(59%).Comparedto2019,thenumberofprojectsintoChinalastyearwasdown60%andcapitalHongKong9826.6%investmentwasdown68%.Others524MALAYSIA•ThePhilippinesexperiencedthesecondlargestgrowthamongthetop10destinationcountriesforFDIinAPACbyprojectnumbersfrom2021Total3475to2022,secondonlytoIndia.ProjectnumbersintothePhilippinesincreasedby122%from2021to2022.ThisstrongperformanceSource:fDiMarketsreturnedthecountrytoitspre-pandemicFDIlevels.9.7%45.8%SINGAPOREVIETNAMSource:fDiMarkets122%PHILIPPINES31.7%AUSTRALIAChart1Table2Table3THEfDiREPORT2023ASIAPACIFIC11FDIINTOASIA-PACIFICBYFDIOUTOFASIA-PACIFICBYFDIOUTOFASIA-PACIFICBYCAPITALINVESTMENT2022RecentmajorprojectsCAPITALINVESTMENT2022PROJECTNUMBERS2022SouthKorea-basedPOSCOistoCountryOutbound$bnCountryOutboundprojectsestablisha$28bngreenhydrogenmanufacturingfacilityinAustraliabySouthKorea75.69India4902040.Thisispartofthecompany’splanstoinvestatotalof$40bninAustraliawithJapan43.14Japan414partnersby2040.Withinthis,$12bnistobeinvestedingreensteelproduction.India42.00China371UK-basedVedantaResourcesTaiwan40.78Singapore348andTaiwan-basedHonHaiPrecisionIndustrywillinvestRs1.54tn($18.72bn)China40.10Australia330tobuilda63:73semiconductoranddisplayproductioncomplexinthestateAustralia31.75SouthKorea197ofGujarat,India,by2024.Singapore16.97HongKong158US-basedAESCorporationisplanningtobuilda$12bnoffshoreHongKong6.87NewZealand51windfarmoffthecoastofBinhThuanprovince,Vietnam.ItisexpectedtohaveVietnam4.68Taiwan47acapacityoffourgigawattsandwouldpotentiallydoublethecountry’swindMalaysia4.30Vietnam28powercapacity.Others7.03Others158BinZayedInternational,asubsidiaryofUAE-basedconglomerateBinZayedTotal313.31Total2592Group,istoinvest$9.6bntodevelopitsLangkasukamixed-developmentinAsia-PacificmarketCapitalinvestmentSource:fDiMarketsSource:fDiMarketsMalaysia.The2000-acredevelopmentshare%($bn)Note:Includesestimateswillcompriseagolfcourse,villaresorthomes,ashoppingmall,bazaar,five-star27.10%India75.80hotelandluxurycondominiumsandisbeingdevelopedina30:70jointventure24.55%Australia68.66withWidadBusinessGroup.9.23%Vietnam25.81KEYTREND5.96%Malaysia16.685.90%China16.505.64%Singapore15.78Indiawasthemostattractivedestinationcountryintheregionby4.65%SouthKorea13.01asignificantmargin,experiencinga126%increaseinthenumberof2.95%Thailand8.26announcedFDIprojects2.78%Turkmenistan7.78comparedto2021.2.50%Indonesia6.988.74%Others24.47Source:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023SECTORS12TheAnimpressive159largeforeigndirectinvest-2022asthesectorwitnessedunprecedentedwithsoaringpublicsupportforinvestmentinmountingment(FDI)projectsworthatleast$1bnwereyear-over-yeargrowth.Renewablesalsostrategicindustries,hastriggeredaninterna-megaannouncedgloballyin2022,fDiMarkets’receivedhugecapitalpledgesingreenhydro-tionalsubsidiesrace.projectscross-borderinvestmentdatashows.Thisisagenandwindenergy.Amidhigherenergywaverecord-breakingnumberofmegaprojects,aspricesandsupplyconstraintsafterRussia’sTheCovid-19pandemichasacceleratedtheyareknown.warinUkraine,thenumberofmegainvest-thetrendofWesterngovernmentsbringingJonathanWildsmithmentsincoal,oilandgasgrewfromfourinbackindustrialpoliciestoreshoreproductionProductionmanager,Whiletheyrepresentlessthan1%ofthe2021to21in2022.instrategicsectors,buildresilienceandfDiMarkets16,000FDIprojectsannouncedworldwideincreatenewjobs.TheUShasbeenparticularly2022,theymakeupforhalfofthe$1tninMeanwhile,electroniccomponents(includ-assertiveinintroducingneweconomiccapitalpledgesannouncedbyforeigninves-ingbatterymanufacturing);metals(includingpoliciesofthelikesoftheChipsActandthetorslastyear,signallingagreaterconcentra-cathodematerialproduction);automotiveInflationReductionAct,whichputbillionstionofglobalFDIinthehandsofalimitedoriginalequipmentmanufacturing(includingofdollars’worthofincentivesonthetablenumberoflargemultinationalenterpriseselectricvehicleproduction);andsemiconduc-forinvestorsinsemiconductorsand(MNEs)withdeeppocketsandcross-bordertorsaccountedforclosetoathirdofenergy-transitiontechnologies.operations.announcedmegaprojects.FacingthedauntingprospectoflosingTheUSwasamajorhotspotformegaSubsidyracecompetitiveness,theEUscrambledtointro-investmentprojectslastyear.DatafromfDiTherearemultiplefactorsthatcontributetoduceitsownincentives-heavyindustrialpoli-Marketsshowsthatthecountryattractedthegrowingwaveofmegaprojectsseenbycies,suchastheGreenDealIndustrialPlan.approximately14%ofthemegaprojectslastmajorworldeconomiesin2022.Capitalavail-Governmentsacrosstheglobe,fromJapanandyear—22dealsvaluedatanestimated$88bnabilityisclearlyoneofthem.AlthoughcentralSouthKoreatoIndiaandMexicohaveallincapitalinvestment.FactoringinfDibanksabruptlyraisedinterestratesin2022,approvedsimilarplans,effectivelytriggeringaMarkets’figuresforinter-stateinvestment,thecostofcapitalwasstillhistoricallylowinsubsidyracetothebottomthathasupendedtheUS’soverallnumberofmegaprojectsthefirsthalfoftheyear,givingMNEsandtheirthefinancialsofreshoringornearshoringproj-growsto39,andadds$74.5bnincapitalfinanciersplentyofroomtocarryoutinterna-ectsthatwouldhavebeenfinanciallyunviableinvestment.tionalexpansions.onlyafewyearsago.AperceivedoutlierinthedataappearsasTheavailabilityofprivatefunding,coupledHowever,suchplanshavedrawntheirfairEgyptrankedastheworld’stopdestinationforshareofcriticism.TheInflationReductionActmegaprojectsintermsofcapitalinvestmentInvestmentincentiveshascomeunderfirefromseveralEUofficialsin2022.ThecountryattractedmorethanhavebecomeembeddedasitallegedlydisadvantagesEurope’svalue$96.8bninsuchprojectslastyear,whichiswithinthelifecycleofpropositionandluresmoreinvestorstotheUSclosetothreetimesthatofitspreviousrecordinvestmentprojectsinkeysectorssuchaselectricvehiclesand($34.9bnin2016).Meanwhile,bynumberofgreenhydrogenproduction.“TheEUandUSFDIprojects,itgrewfromanaverageof3.5shouldworktogethertoensurethatourmegaprojectsperyearbetween2013and2021respectiveincentiveprogrammesarefairandto19megainvestmentsin2022,rankingEgyptmutuallyreinforcingandthusdrivethegreensecondonlytotheUS.transition,”AriannaPodesta,thecoordinatingspokespersonfortheEUCommissiononTherenewableenergyindustryaccountedeconomicaffairs,tellsfDiIntelligence.forthelargestshare(35%)ofmegaprojectsinTHEfDiREPORT2023SECTORS13THEMOUNTINGMEGAPROJECTSWAVE:THENUMBEROFANNOUNCEDFDIPROJECTSSemiconductorsOtherThemajorityoftheselarger,capital-intensiveWORTHATLEAST$1BNBYSECTOR,2013-2022announcementswillspreadthecapitalexpen-ditureoverthenextdecade,whereasfDiRenewableenergyCoal,oil&gasElectroniccomponentsMetalsAutomotiveOEMMarketsallocatesthefullinvestmentamountatthetimeofannouncementbythecompany.150Thismethodologyhasbeenusedconsistentlyacrossthe20yearlife-spanofthefDiMarketsNumberofFDIprojects100databasetoremovevariationsinthedata.50Aspreviouslymentioned,Egypt’sstagger-ingFDIperformancein2022canbeattributed0201420152016201720182019202020212022toahostofmegaprojects.Thisinfluxincapital2013isdirectlyrelatedto17greenhydrogenproj-ects,accountingfor97%ofEgypt’stotalSource:fDiMarketsinboundcapitalinvestmentin2022.Inparticu-lar,India-basedsolarenergycompanyAcmeInvestmentincentiveshavebecome98%from2021to2022,capitalinvestmenteconomiesalsotakescreditasamajorfactorGroup’s$13bn,2.2billiontonnesperannumembeddedwithinthelifecycleofinvestmentandincentivesgrewby29%and44%respec-contributingtothemegaprojectwaveof2022.greenhydrogenplantinAinSokhna,partoftheprojectsascompaniesincreasinglyrelyontivelyinthesameperiod,whichhighlightsaSuezCanalSpecialEconomicZone,aswellaspublicfundstosupportmega-projects.AmongmoreconcentratedmarketpoweredbyaOfthe159FDImegaprojectstrackedlastAustralianmininggiantFortescue’sgreenothers,US-basedchipproducerIntelhasseenwaveoflarge-scaleprojects.year,morethan59%wereingreenhydrogenenergyarmFortescueFutureIndustries(FFI)itsMagdeburgmega-fabinGermanydelayed,aproduction,aswellasthemanufacturingofwhichhaspledgedupto$10bnuntil2030.Thepartofthecompany’s€80bninvestmentMorethantwo-thirdsofincentiveswereelectroniccomponentsandsemiconductors.state’scontributiontoFFI’splansrangesprogrammeintheEU,duetosubsidyannouncedintheUSlastyear,whichwasupbetween$500mand$630m.negotiationsoffthebackoftheenergypricemarginallyfrom64%in2021and62%in2020.TotalannouncedgreenfieldFDIingreencrisisinEurope.HyundaiMotorCompany’s$5.5bnelectrichydrogenproductionstoodat58,foranoverallThewaveofmegaprojectshasanothervehiclemanufacturingplantinSavannah,value$153.9bnlastyear—itshighesteverdistinctivefeature:itispoweredmostlybyIncentivesFlow,arecentlyacquiredfDiGeorgiareceivedthelargestforeigndealworthlevelandapproximatelyfourtimeslargerthanlargeMNEs,whichinevitablyhavemoreIntelligencedatabasetrackingfinancial$1.8bnwhileMicronTechnology,asemicon-the$35.9bntrackedin2021,accordingtofDiresourcestoallocatetosuchendeavoursthanincentivesawardedtocompaniesforforeignductormanufacturer,wasawardedthelargestMarketsdata.Morethan90%ofcapitalsmallandmedium-sizedenterprisesandhaveanddomesticinvestmentprojects,trackeddomesticdealvaluedat$5.8bn.investedingreenhydrogenprojectscanbethesoftandhardinfrastructureinplacetopullmorethan3400dealslastyearworldwide,attributedtomega-projects.themoff.Overall,MNEsmadeup54%ofcapitalworthapproximately$405bnincapitalGreenhydrogenboomexpenditureinmega-projectsand62%ofmegainvestmentwithincentivesvaluedatThespectacularriseofgreenhydrogenasaGiventhatutility-scale,commerciallyFDIprojectnumbers.$44.5bn.Whilethenumberofdealsfellbypossiblekeypieceinthetransitiontogreenerviablegreenhydrogentechnologyhasyettoprovetheconcept,thereremainssomescepti-Sincethepandemic,theselargerMNEscismaroundgreenhydrogenanditsusecases.havetightenedtheirgriponglobalFDIflows,controllingalargerproportionofFDI.Sofar,theyhavetalkedthetalkbyannouncingboldplanstheworldover.Nowisthetimeforthemtowalkthewalk.THEfDiREPORT2023EUROPE14EuropeTable1Keytrendsin2022include:FDIINTOEUROPEBYPERCENTAGECHANGEON2022BYPROJECTNUMBERSPROJECTNUMBERS2022•Thenumberofforeigndirectinvestment(FDI)projectsintoEuroperemainedstablein2022,seeingariseoflessthan1%.TheregionCountryProjectsalsosawa22%increaseincapitalinvestmentto$341.6bnbetween2021and2022.Europeexperienceda4%decreaseinjobcreationUK1119inthesameyear.Germany8202.7%•CapitalinvestmentandjobcreationinwesternEuropesawincreasesof32%and7.4%respectivelyfrom2021to2022,Spain70213%NETHERLANDSreachingavalueof$279.5bnandmorethan383,000jobscreated.Projectnumbersintotheregionremainedstable,withaFrance536UK16%1.3%decreasefromthepreviousyear,as5250investmentswererecordedin2022.Poland49315.1%POLAND•EmergingEurope’sproportionofinboundFDIprojects(relativetoNetherlands306IRELANDwesternEurope)increasedmarginally,from22%in2021to23%in2022.Despitethis,thevalueofcapitalinvestmentandjobcreationIreland305fellby7.7%and18%respectively.Belgium252•TheUKwastheleadingdestinationcountryinEurope,attracting1119announcedFDIprojectsworthanestimated$101.2bn.TheTurkey252renewableenergymarketmadeup$72.5bnofthetotalinvestment,withthesectoraccountingfor13outof15megainvestmentsPortugal240(projectsworthmorethan$1bn)intothecountrywithasurgefollowingScotWind,aleasingroundthatenableddeveloperstobidOthers1812forblocksofScotland’sseabedtouseforcommercial-scaleoffshorewindprojects.Total6837Source:fDiMarkets3.3%FRANCEGERMANY22.9%-35.5%TURKEY79.1%1.6%PORTUGALBELGIUM2.5%SPAINSource:fDiMarketsNote:DataonGermanyisincompleteChart1Table2Table3THEfDiREPORT2023EUROPE15FDIINTOEUROPEBYFDIOUTOFEUROPEBYFDIOUTOFEUROPEBYCAPITALINVESTMENT2022CAPITALINVESTMENT2022PROJECTNUMBERS2022RecentmajorprojectsReplaceCountryOutbound$bnCountryOutboundprojectsChina-basedContemporaryillustrationAmperexTechnology(CATL),whichUK91.13UK1874developslithium-ionbatteriesforelectricvehicles(EVs)andenergystorageFrance76.87Germany1177systems,hasannouncedthatitwillinvest€7.34bntobuilda100gigawatthourGermany62.43France895(GWh)batteryplantinDebrecen,Hungary.Coveringanareaof2.21millionsquareItaly31.53Switzerland672metresintheSouthernIndustrialParkofDebrecen,theplantwillsupplybothcellsDenmark24.71Netherlands514andmodulestoautomakersinEurope.Netherlands24.46Spain364Sweden-basedNorthvoltistobuilditsnew60GWhlithium-ionbatterySpain23.93Sweden333manufacturingplantinHeide,Germany.The€4bngigafactory,NorthvoltDrei,istoSwitzerland20.49Italy281employ3000peopleandwillproduceitsfirstbatteriesforEVsinlate2025,servingPortugal16.83Denmark262marketsinEurope.Luxembourg15.24Belgium233France-basedTotalEnergies,aninternationalenergyconglomerate,hasOthers83.25Others1558announceditwillpartnerwithlocally-basedGreenInvestmentGroupandRIDGTotal470.89Total8163todevelopa2GWoffshorewindfarmprojectinScotland.TheprojectislocatedEuropemarketCapitalinvestmentSource:fDiMarketsSource:fDiMarkets30kmoffthewestcoastofOrkneyandshare%($bn)Note:Includesestimatesisexpectedtobeoperationalby2030.Thedevelopmentwillseeaninvestment29.64%UK101.21ofmorethan£4bnandisexpectedto12.41%deliverenergytoahydrogenproduction7.37%Spain42.38facilityinOrkney.7.05%6.34%Ireland25.18KEYTREND5.53%5.08%Italy24.073.62%2.58%Germany21.672.46%17.92%France18.88$101.2bnPoland17.34TheUKwastheleadingdestinationcountryinEurope,attracting1119announcedFDIprojectsHungary12.37worthanestimated$101.2bn.Netherlands8.82Romania8.41Others61.21Source:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023SECTORS16ElectricOverthecourseof2021,annualsalesofelec-Daimler,BMW,HyundaiandFordrampedupvehicleFDItricvehicles(EVs)doubledtoanewrecordofinvestmentsinEVswithacombined$25.1bnaccelerates6.6million.Whilejust120,000EVsweresoldinvestedin2022alone.worldwidein2012,morethan120,000EVsGeraldineEwingweresoldeachweekin2021accordingtotheAsthecostoffuelcontinuestoriseandHead,InternationalEnergyAgency.thepricegapbetweenEVsandconventionalfDiMarketscarsdecreases,EVsandhybridvehiclesareCross-borderinvestmentmonitorfDibecominganincreasinglyattractivechoiceforMarketshasrecordedamarkedincreaseintheAtotalof281consumers.However,thereareseveralfactorsnumberofannouncedforeigndirectinvest-FDIprojectswerethatarethrottlinguptake,includingprimarilyment(FDI)projectsintheEVbusiness.Despiterecordedin2022withtheirrange.ForEVstobeembracedinanyalullininvestmentsduringthefirstyearoftheacumulativevaluesignificantway,theissueofhowfartheycanCovid-19pandemic,investmentintothesetravelbetweenchargesrequiresurgenttechnologieshavecontinuedtoincreasesinceof$93.7bninvestmentandinnovation.2016,bothintermsofprojectnumberandvalue.Atotal281FDIprojectswererecordedinWhiletherangeofthesevehiclesis2022withacumulativevalueof$93.7bn—increasing,wideraccesstochargingpointsismorethan1.5timeshigherthanin2021andneededtomakechargingEVsaseasyasrefu-nearlythreetimesthecapitalinvestmentellinginternalcombustionvehicles.McKinseyannouncedin2019.ManufacturingprojectsestimatesthattheEU27willneedatleast3.4accountedfor96%ofthecapitalinvestmentmillionoperationalpublicchargingpointsbyand54%oftheannouncedFDIprojectsin2022.2030toreachthetargetofbecomingSome45announcementsweremadeincarbon-neutralby2050andtomeetantici-researchanddevelopmentactivities,atatotalpatedpublicdemand.Alongsidethis,exten-investmentof$2.1bn.siveenergygridupgradeswillberequiredtodistributepowertothesenewpoints.Inall,Withinthat,severalmegainvestmentsMcKinseyestimatesthisbuild-outof(thoseworth$1bnormore)wereannounced.EV-charginginfrastructurewillcostmorethanTeslaMotorswasbyfarthemostactiveinves-€240bnby2030.torinthearea,with59FDIprojectsannouncedsince2016,includingthreebig-ticketoverseasAccesstocriticalmaterialsposesariskgigafactories:Shanghai,BrandenburgandBatteryinnovationshavedrivenuptheaver-Monterrey.agerangeofEVsfrom127kmin2010to349kmin2021,accordingtoIAEdata.DespiteWhile2021wasapeakforTesla,otherthebatterysupplychainbeingfraughtwithautomotivefirms—bothestablishedandcriticalmaterialinsecurity,suppliersappeartostart-upcompanies—announcedtheirhigh-bemakingstrategicearlyinvestmentstoestnumberofEVprojectsduring2022.ensurenewfactoriesareatnameplatecapac-Vietnam’snewEVfirmVingroupannouncedityintimetomeetthemoment.morethan$4.5bninFDIprojectsin2022andtraditionalautomakerssuchasVolkswagen,fDiMarketshasrecordedanequallysteepTHEfDiREPORT2023SECTORS17increaseinthenumberofFDIprojectstaggedFDIINELECTRICMOBILITYACCELERATES:FDIPROJECTSUNDERsalestotalledmorethan14,200in2021,whichaspartofthebatterysupplychainsince2016,THE‘ELECTRICVEHICLES’TAGBETWEEN2016AND2022representslessthan0.3%ofthetotalnumberasmanufacturersareinvestingwithfutureEVofregistrationsforsuchvehiclesworldwiderequirementsinmind.Whenlookingatonly100300andassuch,thissegmenthasgrowthpotentialthoseprojectsservingthetransportequip-93.7—particularlyintheelectricbusspace.Thementcluster,wecanseethatinvestmentsEVProjectsEVCapexEU’sCleanVehiclesDirectivehasledtototallinganestimated$79.3bnwere280nationaltargetstotransitiontopublicprocure-announcedin2022,comparedtojust$22.1bn90260mentofonlyzero-emissionbuses,andthiswillin2019.Thisboostincapitalinvestmentwas240nodoubtincreaseuptake.supportedbymegainvestmentsinthebatter-80220iessubsector;however,thevolumeofprojects200fDiMarkets’investorsignalsdatabase,announcedinthesectorin2022alsoincreasedCapitalInvestment(US$bn)70180whichmonitorsearlyindicationsbycompa-by48%to157announcements.160niesconsideringfutureinvestmentinforeign60140No.ofFDIProjectsmarkets,hasrecordednotableannounce-BecauseanEVbatterycanaccountforas120mentsfromfirmsaimingtotapthispotentialmuchas40%ofthecar’scostandbecausethe50100in2022.IntheLCVspace,SaicMaxusleadingfivebatterymakersholdanestimated80Automotive,announcedanambitiousstrategy80%oftheglobalmarketshareaccordingto4031.637.260aimingtobecomethelargestsupplierinGoldmanSachsresearch,batterysupplychain30.1Europe,whileUK-basedtruckfirmTeevaconstraintsappeartohavethemostpotential201920212022Motorsraised$54mtofunditsNorthAmericantoslowgrowthinEVuptakeaspricingpower30YearandEuropeanexpansionplan.Supportinghasshiftedtothebatterymakersandlimitstechnologiesarealsoinreceiptoffundingforprofitabilityforautomakers.2022.6theimplementationofexistingtechnologies.Germany-basedChargd,anEVchargingplat-Investmentoutlook12.42020formthatconnectsvehiclesofanytypeandThereisanuncertainoutlookforEVsinthechargers,andUS-basedLoopGlobal,anear-term,butcompaniesappearundeterred107.4charginginfrastructurecompany,eachandcontinuetoinvestinelectrification,announcedfundingandaccesstonewspurredonbymountingincentivesandpolicy020172018resourcesin2022.support—fromtheInflationReductionActintheUStotheEU’sGreenDealIndustrialPlan.2016TheclimateforEVsisnotwithoutitschal-Thispressurehasbroughtaboutadvancesinlenges;however,therearenosignsthatelectrifyinglightcommercialvehicles(LCVs)Source:fDiMarketsIncludesestimatesdemandfromconsumerswillwane,andstrongfleetsglobally.LCVsareparticularlyripeforsupportexistsfromgovernmentalorganisa-investmentasmanyareusedforurbandeliv-BATTERYSUPPLYCHAINFOREVSINGROWTH:FDIPROJECTSTAGGEDBATTERYtions,soitislikelythatinvestmentsinthiseryandsinceLCVfleetsaredrivenintensively,SUPPLYCHAININTHETRANSPORTEQUIPMENTCLUSTER2016-2022spacewillcontinuetogrow.ImplicationsoftheoftenoperateonpredictableroutesandcanbeInflationReductionActintheUSaswellaschargedatcommercialdepots.90160similarpoliciesacrosstheworlddoleaveques-tionsonhowcountrieswillcompetefortheElectricmedium-andheavy-dutytruckEVProjectsEVCapex79.3150marketshareinthislucrativeindustry.80140CapitalInvestment(US$bn)70130120No.ofFDIProjects60110501009040803022.130.570602015.616.85040102.15.3300201720182019202020212020162022YearSource:fDiMarketsIncludesestimatesTHEfDiREPORT2023NORTHAMERICA18NorthAmericaTable1Keytrendsin2022include:FDIINTONORTHAMERICABYPERCENTAGECHANGEON2022BYPROJECTNUMBERSPROJECTNUMBERS2022•In2022thetotalnumberofforeigndirectinvestment(FDI)projectsintoNorthAmericaroseto2330—anincreaseof19%StateProjectsQUEBECand26%comparedto2021and2020,respectively.Theregion-32.9%alsowitnesseda59%increaseincapitalinvestmentfrom2019NewYork231figures,reaching$178.1bnin2022.Additionally,inboundprojectssupportedthecreationofmorethan241,100jobs,thelargestfigureTexas22927.7%fortheregionsincerecordsbeganin2003.California197ONTARIO•TheUSretaineditspositionasthetopdestinationcountryinNorthAmerica,intermsofprojectnumbers,capitalinvestmentandOntario175jobcreation.TheUSreceivedanestimated$158.1bnininboundcapitalinvestment—anincreaseof73%comparedto2021andFlorida155anincreaseof59%from2019—suggestingastrongbouncebackfromthepandemiclows.Massachusetts7717.3%•TheUS’sstrongcapitalinvestmentincreaselastyearcanbetracedNorthCarolina6814.3%NEWYORKbacktoasubstantialincreaseintheaverageprojectsizeintermsofcapitalinvestment.TheaveragecapitalinvestmentperprojectIllinois64ILLINOIS13.2%roseto$80.4min2022.Thisisincomparisontoanaverageprojectinvestmentof$51.5min2019and$56.8min2021,demonstratingGeorgia63MASSACHUSETTSahigheryieldofinvestmentperprojectin2022.Theincreaseislargelyexplainedbythe22mega-investmentprojects(projectsQuebec53worthmorethan$1bn)announcedinthecountry.Others1018•TheamountofFDIintoCanadahasremainedsteadythroughout2022.Thecountrysawa2.6%increaseinthenumberofprojectsTotal2330comparedto2021.TheamountofcapitalinvestmentintoCanadawasjustshyof$20bnin2022;whilethisrepresentsa4.6%decreaseSource:fDiMarketsfrom2021,capitalinvestmentintoCanadasawdouble-digitgrowthbetween2019and2021.0.00%GEORGIA20.9%37.1%28.3%CALIFORNIATEXASNORTHCAROLINASource:fDiMarkets43.5%FLORIDATHEfDiREPORT2023NORTHAMERICA19Chart1Table2Table3FDIINTONORTHAMERICABYFDIOUTOFNORTHAMERICAFDIOUTOFNORTHAMERICARecentmajorprojectsCAPITALINVESTMENT2022BYCAPITALINVESTMENT2022BYPROJECTNUMBERS2022Taiwan-basedTaiwanSemiconductorCountryOutbound$bnCountryOutboundprojectsManufacturingistoestablishasecondsemiconductormanufacturingplantCalifornia47.35California988intheUSstateofArizona.In2020,thecompanycommitted$12bntoTexas35.08NewYork573achipplantinArizonawhichissettoopenin2024.InNovember2022,itWashington22.70Texas259announcedplansforasecondsitethatwillmanufacturemoreadvancedthreeNewYork22.04Ontario226nanometrechips,startingin2026.Theoverallinvestmentforbothsitesis$40bn.Ontario16.44Massachusetts222SouthKorea-basedHyundaiMotorVirginia16.20Washington173hasannouncedthatitplanstoopenanelectricvehicleandbatterymanufacturingMassachusetts6.99Illinois172facilityintheUSstateofGeorgia.Thecompanywillinvest$5.5bnintheHyundaiBritishColumbia6.75Florida142MotorGroupMetaplantAmericawhichisexpectedtocreate8100newjobs.Pennsylvania6.23NewJersey120Shell,asubsidiaryofNetherlands-Connecticut6.07Quebec110basedRoyalDutchShell,haspartneredwithNorway-basedEquinorOthers48.79Others1117todeveloptheSpartaprojectintheUSGulfofMexico.Thedeep-wateroilfieldTotal234.64Total4102developmentprojectisexpectedtogarneraninvestmentofcloseto$4.3bn.NorthAmericaCapitalinvestmentSource:fDiMarketsSource:fDiMarketsmarketshare%($bn)Note:IncludesestimatesPanasonicEnergy,aproviderofbatterytechnology-basedproductsandsolutions17.93%Arizona31.93KEYTRENDwhichoperatesasasubsidiaryofJapan-9.13%Georgia16.26basedindustryconglomeratePanasonic,8.96%Texas15.96TheUSretaineditsistobuilda$4bnbatteryplantintheUS.6.66%Ontario11.86positionasthetop4.78%California8.51destinationcountryin3.50%NorthCarolina6.23NorthAmerica,interms3.38%Ohio6.02ofprojectnumbers,2.99%Tennessee5.33capitalinvestmentand2.91%Michigan5.182.56%Kansas4.57jobcreation.37.20%Others66.26Source:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023ENERGYINVESTMENTMAP20UkraineTheUkrainewarsentshockwavesthrough(FDI)since2009,drawinginmorethanSlopeintheUSstateofAlaska.The$2.6bnwarredrawstheglobalenergymarket.AsRussiaweap-$28bn.ThismakestheMiddleEastthetopjointventure,whichseekstocreatemorethanenergyoniseditsgassuppliestoEurope,Westerndestinationregionforcoal,oilandgasFDIin500jobs,formspartofacompanyplantoinvestmentgovernmentsabruptlywokeuptotheriskof2022,whenmeasuredbyestimatedcapitaldiversifyoilsourcesawayfromRussia,inlightmapdependingonRussianimportsfortheirinvestment.Qatar’sinflowsareattributableofthewar.domesticenergysecurity.WesternoilmajorstoprojectsliketheRasLaffanliquifiednatu-JoshuaCrawford,werealsocaughtinthecrossfire,aftersink-ralgassite,inwhichFrance-basedTotalElsewhereintheUS,ShellannouncedtheProductionmanager,ingdozensofbillionsofdollarsintotheEnergiesisinvesting$3.5bn.Thedevelop-$4.3bnSpartaprojectintheGulfofMexico,fDiMarketsdevelopmentofRussianoilandgasreserves.mentformspartofthecompany’seffortstoobtainingtheprojectrightsinJune2022.ThefateofthoseassetsstillhangsinthecompensateforitswithdrawalfromUkraineShell,whichgenerateditshighestprofitsin15balanceasthewarcontinuesanddivestmentfollowingtheinvasion.yearsin2022,devotedmorethan$13bnofmechanicsremainuncertain.Whatiscertaincapitalinvestmenttocoal,oilandgasFDIistheswiftmobilisationofcapitalandJimBurkhard,headofresearchforoilventuresgloballyduring2022,thehighestresourcestoplugtheholeleftbydemisedmarkets,energyandmobilityatS&PGlobalinvestedsectorallybythecompanysinceRussianventures,andservethenewgeopo-CommodityInsights,saysthat,asaresultof2018.liticalmantraofpivotingenergysuppliesthewar,a“trueglobalmarket…doesn’texistawayfromRussia.anymore”.TheUSrankedsecondgloballyin2022foritsattractionofcoal,oilandgasprojects,andAfteryearsofsubduedactivity,cross-bor-TheUShasbeenpivotalincreatingthiscamethirdforrelatedcapitalinvestmentderinvestmentintonewcoal,oilandgasredefinedglobalmarket,whichexportedaflows,withinboundventuresworthanesti-venturesspiked.Thesectorrankedsecondrecord11.1millionbarrelsofcrudeoilandmated$11.2bn.Althoughthelevelsofcapitalgloballybycapitalinvestmentin2022,withrefinedproductsperdayduringthethirdweekinvestmentfallwellshortofthoseobtainedinanestimated$104.8bnofprojectsofFebruary2023—morethanthetotaloutput2019,whenmorethan$23bnwasinvested,itannounced.CapitalinvestmentgrowthfromofeitherSaudiArabiaorRussia,andupfromwasstillthesecond-strongestyearfortheUS2021wasalsothehighestofanysector,asninemillionbarrelsperdayatthesamepointcoal,oilandgasmarketsince2011.ThisfDiMarketsnoteda538%increase.in2022.marketformsamajorpartoftheNorthAdditionally,projectgrowthwastheAmericaregion,whichincreaseditsglobalsecond-highestofanysector,witha67%Santos,anAustralia-basedoilandgasshareofcoal,oilandgascapitalinvestmentbyincreaserecorded.Thisgrowthfollowsaproducer,announcedplansinAugust2022toalmost10%between2021and2022,therecordlowperformancebetween2020anddevelopthePikkaoilprojectontheNorththird-highestshareobtainedsince2013.2021,despitethe2022energycrisis.AfteryearsofsubduedIncomparison,renewablesFDIintotheUSTheconflictinUkraineisamajorpartofactivity,cross-borderfelltoitslowestlevelsince2017,asthethetransformingglobalenergymap.Asinvestmentintonewcoal,numberofprojectsdroppedfrom58to44recordedbyfDiMarkets,easternEurope’soilandgasventuresspikedbetween2021and2022.Capitalinvestmentshareofcoal,oilandgascapitalinvestmentalsolevelleddown,toanestimatedfellbyalmost44%between2021and2022.$8.1bn—thelowestrecordedbyfDiOtherregionsbenefitedstronglyfromthis:Marketssince2018.Qatar,forexample,attracteditshighestlevelofcoal,oilandgasforeigndirectinvestmentOtherplayersareadoptingsignificantrolesinredrawingtheglobalenergymap.Forexam-ple,GuyanaemergedasanalternativeenergyTHEfDiREPORT2023ENERGYINVESTMENTMAP21REDRAWINGTHEFOSSILFUELINVESTMENTMAP:THEPROPORTIONOFCAPITALINVESTMENTINCOAL,supplierduring2022inlightoftheUkraineOILANDGASBYTOP10DESTINATIONCOUNTRIES,2017-2022($BN)conflict,increasingitsoilexportsby164%.Thecountryalsoattractedmorethan$13bnofEgypt$30bnCanada$30.1bnSaudiArabiaSriLanka$24.0bnUS$23.0bncapitalinvestmentfromUS-basedExxonMobilOthers$91.2bn$11.2bnOthersin2022,withtheannouncementsoftheOthersGhana$100bnVietnamYellowtailjointventureandUaruultra-deepwa-$61.7bn$7.9bnMexico$18.7bnteroilfield.$8.4bn2019Guyanaisreceptivetotheseenergyinvest-2017Vietnam2018ments.PresidentBharratJagdeosaysthe$4.6bncountryisina“madrush”,tryingtodiversifyitsoilsupplyandsecurenewsourcesofreve-IndonesiaTurkey$4.0bnIraqIndiaPhilippinesRussianuewithinthiswindow.Theauctioningofnew$1.9bnUS$3.9bn$4.6bn$7.9bn$2.1bn$11.4bnoffshoreexplorationblocksissettokeepdriv-Kenya$2.0bnBangladesh$4.7bnNigeria$2.3bningthelocalmarket,attractingpotentialinves-Iraq$2.4bnMalaysia$4.8bnTurkeyMyanmar$3.2bnBraziltorslikeShell,PetrobrasandChevron.AmongMozambique$2.4bnLibya$5.6bn$7.5bnGuyana$4.8bn$5.3bnothermotivations,itishopedtheintroductionSingapore$2.6bnVietnam$6.3bnBangladesh$5.2bnofnewplayerswilllessenthedominanceofExxonMobil-ledconsortiumsanddiversifytheBrunei$13.7bnGuyana$9.0bnRussia$5.8bnGabon$2.1bnQatar$28.8bninvestmentfield.OthersAustraliaOthersOthersGuyanaGuyanaisoneofthestand-outsofthe$49.4bn$6.4bn$15.0bn$93.3bn$13.5bnLatinAmericaandCaribbeanregion,whichincreaseditsmarketshareofcoal,oilandgas20202021Mozambique2022UScapitalinvestmentbymorethan7%between$2.0bn$11.5bn2021and2022,withtheregionreceivingalmostone-quarterofglobalinvestmentflows.ArgentinaOman$4.2bnPolandKenya$1.4bnMozambiqueMexico$1.5bn$0.4bn$1.0bn$8.7bnLastyear,inlargepartduetotheUkraineUzbekistan$2.2bnVietnamMexico$0.5bnColombiaAustralia$2.8bnconflict,wasmarredwithunpredictabilityAngola$2.3bn$4.0bnUkraine$0.5bn$0.9bnLibya$6.0bnTurkmenistanacrossglobalsectors.Despitethis,thecoal,oilBrazil$2.7bnUganda$6.5bn$7.5bnandgasFDIindustryachievedgrowth,withMyanmar$3.4bnLithuania$0.7bnSouthKorea$7.0bnotherworldregionsbenefitingfromeasternBrazil$0.8bnEurope’sdemise.ThegrowthoftheindustryinSource:fDiMarketsIncludesestimates2022,thescaleofsectoralinvestments,andtheregulatoryenvironmentsofmajorecono-miesonaredrawnmap,liketheUS,inadditiontosmallerplayerslikeGuyana,suggestcoal,oilandgasFDIwillcontinuetoperformstrongly,regardlessofrenewableenergydevelopmentsandglobalevents.THEfDiREPORT2023MIDDLEEASTANDAFRICA22MiddleEastTable1andAfricaFDIINTOMIDDLEEASTPERCENTAGECHANGEON2022BYPROJECTNUMBERSKeytrendsin2022include:ANDAFRICABYPROJECTNUMBERS202267.4%•Foreigndirectinvestment(FDI)intotheMiddleEastandAfrica(MEA)increasedin2022,withthenumberofannouncedFDICountryProjectsSAUDI71%projectsincreasingby54%to2131since2021.CapitalinvestmentARABIAintotheregionalsoroseby234%overtheperiod,reachingUAE879UAE$261.2bn.SaudiArabia216•Regionally,thenumberofFDIprojectsdestinedfortheMiddleEastincreasedfrom870in2021to1397in2022.ThisrepresentsaSouthAfrica157growthof61%on2021andamarketshareof8.7%ofFDIprojectsglobally.ThenumberofannouncedFDIprojectsintoAfricaroseEgypt14842%from517projectsin2021to734in2022.Whileprojectnumbershavedecreasedby30%since2019,capitalinvestmentintoAfricaQatar135MOROCCOwasmorethan2.5-timeshigherin2022thanitwasin2019.Israel73•TheUAEhasretaineditspositionasthetopdestinationforprojectsintheregionin2022.Atotal879projectswereannounced,markingMorocco71ISRAELa71%increasefrom2021.TheUAEalsoaccountedfor41%ofFDIprojectsacrosstheMEAand15%ofjobscreatedintheregion.Kenya63-5.2%•ThenumberofFDIprojectsintoEgyptrosebymorethan150%Nigeria49155.2%to148in2022,representinganestimatedcapitalinvestmentofEGYPT$107bn.Thisrepresentsa41%marketshareintheMEAregionandOman35ranksitasthetopdestinationcountryforcapital-intensiveFDIinthe66.7%region,andsecondgloballyin2022.ThisgrowthisfuelledbyseveralOthers305megaprojectsbeingannouncedinrenewablehydrogen.OMANTotal2131Source:fDiMarkets57%QATAR16.7%NIGERIA90.9%KENYA36.5%SOUTHAFRICASource:fDiMarketsTHEfDiREPORT2023MIDDLEEASTANDAFRICA23Chart1Table2Table3FDIINTOMIDDLEEASTANDFDIOUTOFMIDDLEEASTFDIOUTOFMIDDLEEASTRecentmajorprojectsAFRICABYCAPITALINVESTMENT2022ANDAFRICABYCAPITALANDAFRICABYPROJECTUAE-basedURB,adeveloperofsustainablecities,istoinvest$20bnINVESTMENT2022NUMBERS2022todevelopanewself-sufficientcityintheeasternregionofSouthAfrica.TheCountryOutbound$bnCountryOutboundprojectsresidentialhubwillhave40,000unitsallocatedacross12residentialdistricts.UAE84.00UAE272Thecityisexpectedtohouse150,000residents.Covering1700hectares,SaudiArabia21.78Israel192thenet-zerosmartcitywillhavemixed-usehubs.Israel9.31SaudiArabia62India-basedAcmeGroupistoSouthAfrica1.67SouthAfrica47constructa$13bngreenhydrogenplantinAinSokhna,Egypt,partoftheQatar1.15Nigeria39SuezCanalSpecialEconomicZone.Theplant,tobebuiltover4.5millionsquareMauritius1.15Egypt33meters(sqm),willproduce2.2billiontonnesofgreenhydrogenannually.Oman0.69Mauritius21UK-basedGlobeleqGenerationNigeria0.63Kenya21intendstobuilda3.6-gigawatt(GW)hydrogenproductionhubwithintheBurundi0.53Qatar17SuezCanalEconomicZoneinEgypt.Thehubistobepoweredby9GWKenya0.47Kuwait17ofwindandsolarcapacitywithinthezone.The$11bngreenfuelOthers2.04Others102productionplantwillbelocatedonanareaof10millionsqmandhaveTotal123.42Total823aproductioncapacityoftwomilliontonnesannually.MiddleEastandAfricaCapitalinvestmentSource:fDiMarketsSource:fDiMarketsmarketshare%($bn)Note:IncludesestimatesNote:Includesestimates40.97%Egypt107.00KEYTREND11.40%Qatar29.7810.24%SouthAfrica26.76ThenumberofFDIprojects5.86%Morocco15.31intoEgyptrosebymore5.00%SaudiArabia13.054.00%UAE10.45than150%to148in2022,3.90%Uganda10.20representinganestimated3.75%Oman9.79capitalinvestmentof$107bn.2.44%Libya6.361.99%Zimbabwe5.2110.44%Others27.28Source:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023SECTORS24TheEVdichotomy:ditureintobatterymetalsandmineralcontinueuntilnewrawmaterialoperationsinvestmentintoextractionrisksupendingtheEVrevolution.Bycomeonline.manufacturingfarconsequence,thebarrierstoreachingelectrifi-exceedsthatintorawcationtargetsriskslowingthewholeenergyAlotofdownstreaminvestmentisalsomaterialextractiontransition.donebycellmanufacturersandautomakerswhoarebigenoughtoraisesignificantcapitalAlexIrwin-HuntGlobaldemandforlithium-ionbatteriesisIn2022,foreigninvestorsannouncedEVandinvestofftheirbalancesheet.“ThoseGlobalmarketseditor,expectedtosoarinthecomingyearsduetomanufacturingprojectsworthmorethancompaniescanmakethedecisiontofindaplotfDiIntelligencetheelectrificationofmobilityandthebroader$92bn,accordingtofDiMarkets.Bycompari-oflandandgetaplantbuilt,”saysMrRawles.energytransition.Forecastsaboutthebatteryson,only$14.6bnwaspledgedtogreenfield“Butwhenitcomestorawmaterialsupply,itcapacityneededarestaggering.McKinseyesti-foreigndirectinvestment(FDI)miningprojectstakesalotlonger.”matesthattheamountofgigawatt-hoursacrossallmineralsandmetals.Thismuch(GWh)oflithiumbatteriesneededwillincreasesmallerfigurealsoincludesinvestmentsintoBuoyedbygenerousincentivepackagesbymorethansixtimes:from700GWhin2022rawmaterials—suchaslithium,nickelandfromtheUS,EUandotherjurisdictions,auto-toaround4.7terawatt-hoursby2030.cobalt—neededforEVbatteriesandothermakersandbatterymanufacturershavepart-components.neredupandsetoutmajorexpansionplans.InMorethan90%ofthatdemandwillcome2022,awhopping26megaprojects(invest-frommobilityapplicationssuchaselectricThecapitalexpenditure(capex)differencementswithatleast$1bnofcapitalpledged)vehicles(EVs).Batterymanufacturers,andthehaswidenedsignificantlyinrecentyears,butitwereannouncedinbatteryandEVmanufactur-automakerstheyplantosupply,areinarushisnothingnew.FDIpledgesinEVmanufactur-ing,comparedwithfourintoextractionprojects.tosecureasteadysupplyoftherawmaterialsinghavebeenhigherthanthoseinmetalandequipmentneededtomeetproductionextractionprojectseveryyearsince2016,Thesemegamanufacturingprojectshavedemandsandservethisgrowingmarket.ButaccordingtofDiMarkets.proliferatedglobally.SouthKorea’sHyundaiisthereisamassivedisconnectintimeandinvesting$5.5bnintoabatteryandEVcomplexactionwithinthesupplychain.ThismassivecapexsplitispartiallyaresultintheUSstateofGeorgia.InHungary,China’soflarge-scaleadvancedmanufacturingopera-CATLissettoinvest$7.49bntobuildEurope’sAnimbalancebetweenhugeinvestmenttionstypicallyneedingmorecapitalinvest-largestgigafactory,whichwillhavecapacitytointodownstreambatteryandEVmanufactur-mentthanrelativelysmallextractionprojects.produce100GWhofbatteriesoncefullyopera-ingcomparedwithmuchlowercapitalexpen-Butthereareotherfundamentalsdrivingthetional.challengesfacingtheEVrevolution.Taiwan’sFoxconnwillinvest$8bnintoaWhileminingprojectscantakeupto20factoryinIndonesia,whichwillproduceyearstostartproductionafteradepositisbatterycells,cathodeprecursorsandEVs.discovered,downstreambatteryproductionMeanwhile,Swedishbatterystart-upNorthvoltoperationscantakeaslittleasthreeyearstoissettoplough$4.25bnintoa60GWhgigafac-startproduction.toryinHeide,Germany.CasparRawles,chiefdataofficeratDespitetheemphasisplacedontheimpor-BenchmarkMineralIntelligence,anEVsupplytanceofmineralsneededtosupplyallthesechainspecialist,describesthisimbalanceinvastfactoriesandtomeetglobalclimateleadtimesofprojectsas“thegreatrawmate-targets,miningcompaniesarenotinvestingrialdisconnect”,notingthatthedeficitinanywherenearasmuchastheyshould.marketsforcommoditieslikelithiumwillExplorationspendingonnon-ferrousTHEfDiREPORT2023SECTORS25THEGREATRESOURCEIMBALANCE:FOREIGNDIRECTINVESTMENTINTOmetalsstoodat$11.2bnin2021,roughlyhalfandgovernance(ESG)barriers.AnexampleofUPSTREAMANDMIDSTREAMOFEVSUPPLYCHAIN,2016-2022thelevelseenin2012,accordingtoS&PGlobal.thiswasseeninSerbiainearly2022,whereMorethanhalfofthatspendingwenttowardsRioTinto’splanned$2bnlithiummining$100bnEVmanufacturingMetalsandmineralextractiongold,ratherthancriticalmetalsneededforEVplantwasblockedduetolocalprotestsand$90bnbatteries;just21%wenttowardscopper—apoliticalopposition.widelyusedmaterialingreentechnologies,$80bnincludingEVs,charginginfrastructure,wind“Governmentwillneedtodecidewhetherturbinesandsolarphotovoltaics.ThecriticaltheycanoffsetsomeESGconcernswiththe$70bnneedforcopperintheenergytransitionhasbeliefthatincreasingEVproductionisforthecreatedahugemarketopportunity.greatergoodoftheenergytransition,”saysMs$60bnO’Hara.Globalcopperdemandisexpectedtogrow$50bnfrom25millionmetrictonnes(MMT)todaytoMrHaringssaysthereneedstobeashiftin35MMTby2035,accordingtoS&PGlobal,withpublicperceptiontowards“betterinmyback-$40bnsupplyfallingshortbynineMMT.Meetingthisyard”thinkingandaspeedingupofminingdemandwillneed“significantinvestmentpermittingprocessesinEuropeandthe$30bnacrossthewholevaluechain”,butminingAmericastomorequicklyscaleupprimarypermittingprocessesneedtobespedupinproductionofmetalssuchaslithiumand$20bnEuropeandtheAmericas,notesRolandcopper.Harings,theCEOofAurubis,Europe’slargest$10bncopperproducer.Severalmajorautomakers,includingGermany’sVolkswagen,areactivelypartnering$0bn201720182019202020212022Theprotectionistnatureofgovernmentwithminingcompaniestodirectlysourceraw2016supportthrowsanotherspannerintheworks.materialsandinvestingfurtheruptheEVTheUSInflationReductionAct,abillwithsupplychains.Manyarealsoexploringalterna-Source:fDiMarketsIncludesestimates$369bnworthofincentivestosupportdomes-tivebatterychemistries,whichusedifferentticEVproduction,renewablesandcriticalconcentrationsofmetalslikelithiumandEVmanufacturing’includesgreenfieldFDIprojectstrackedinelectroniccomponent,automotivecomponentandoriginalequipmentminerals,isacaseinpoint.cobalt,tohelpacceleratetheirelectrificationmanufacturer(OEM)sectors.‘Metalsandmineralextraction’showstrackedgreenfieldFDIminingprojectsacrossallmineralsandmetals,plansandminimisetheirexposuretoissuesinincludingthoseneededforEVbatteriesandothercomponents.AutomakerscanonlyclaimEVtaxcreditsifthesupplychain.40%ofthecriticalmineralscontainedintheirbatteriesareextractedorprocessedintheUS.UScarmakerFordisacaseinpoint.ItwillWhilethisisinresponsetoChina’sdominanceinvest$4.5bntoadvancesustainablenickelacrossmostcriticalmineralsupplychains,productioninIndonesiaaspartofadealsignedfromextractionthroughtoprocessing,thiswithnickelminerValeIndonesiaandChina’sregionalisationcontravenesglobalneeds.ZhejiangHuayouCobalt.PhoebeO’Hara,ananalystatFitchThePomalaBlockHPALProject,locatedinSolutions,agreesthatgovernmentscoulddothesouthwestoftheIndonesianislandofmoretosupportminingprojects,manyofSulawesi,willproduceupto120kilotonsofwhichhavebeenhaltedintheUSandEuropecontainednickelperyearintheformofmixedduetoregulatoryandenvironmental,socialhydroxideprecipitate.Itisexpectedtostartcommercialoperationsin2026.THEfDiREPORT2023LATINAMERICAANDTHECARIBBEAN26LatinAmericaTable1andtheCaribbeanFDIINTOLATINAMERICAPERCENTAGECHANGEON2022BYPROJECTNUMBERSANDTHECARIBBEANBYKeytrendsin2022include:PROJECTNUMBERS20225%•Foreigndirectinvestment(FDI)intoLatinAmerica(Latam)grewCountryProjectsCOSTARICA123.1%in2022,asprojectnumbers,capitalexpenditureandjobcreationDOMINICANREPUBLICincreasedby13%,50%and29%,respectivelyoverthecourseoftheMexico433year.Duringtheperiod,thenumberofFDIprojectsrosefrom1119to1267,capitalexpendituregrewfrom$63.2bnto$95bnandtotalBrazil23132%jobscreatedwentfrommorethan234,000tomorethan302,000.However,lastyear’sregionalfiguresremainlowerthanlevelsCostaRica147BRAZILrecordedin2019.Colombia13526.6%•MexicowasakeydriverofLatam’sgrowth,rankingasthetopdestinationforprojects,capitalexpenditureandjobcreation.AtotalChile80MEXICOof433projectslandedinMexico,constitutingmorethanathirdofallFDIprojectsintheregionanda27%increasecomparedtoArgentina632021.Thecountryalsoreceivedanestimated$35.6bnincapitalexpenditure,morethandoubletheamountitreceivedin2021.Peru3360%•Brazilwasthesecond-mostattractivedestinationcountryinDominicanRepublic29GUATEMALALatinAmerica,with231projects,$17.8bnincapitalexpenditureandmorethan33,000newjobscreatedbyforeigncompanies.Uruguay24Conversely,whileBrazilreceivedthesecond-highestamountofcapitalexpenditureandsawa32%increaseinprojectscomparedtoGuatemala167.1%2021,itstotalinboundcapitalexpendituredecreasedby22%overthesameperiod.Others76COLOMBIATotal1267Source:fDiMarketsPERU33.3%-23.3%URUGUAY9.6%ARGENTINACHILE-34.4%Source:fDiMarketsTHEfDiREPORT2023LATINAMERICAANDTHECARIBBEAN27Chart1Table2Table3FDIINTOLATINAMERICAANDFDIOUTOFLATINAMERICAFDIOUTOFLATINAMERICARecentmajorprojectsTHECARIBBEANBYCAPITALINVESTMENT2022ANDTHECARIBBEANBYANDTHECARIBBEANBYUS-basedpetrochemicalcompanyExxonMobilhasannouncedplansCAPITALINVESTMENT2022PROJECTNUMBERS2022toinvest$10bninitsYellowtaildevelopmentand$3.5bninitsUaruCountryOutbound$bnCountryOutboundprojectsdevelopmentoffshoreGuyana.Mexico3.79Brazil89Australia-basedWoodsideEnergy,anindependentenergycompany,istoChile3.41Mexico64invest$4.5bntodevelopanultra-deepwaterTrionoilfieldoffshoreMexico.Brazil1.83Argentina50CelulosaAraucoyConstitucion,aArgentina1.53Chile41woodpulpproducerandasubsidiaryofChile-basedEmpresasCopec,isBermuda0.65Colombia28investing$3bntoopenanewpulpmillinMatoGrossodoSul,Brazil.ThefacilityColombia0.47Bermuda24willhaveanannualcapacityof2.5milliontonnes.ConstructionisexpectedGuatemala0.36Peru13tobeginin2025andthefactoryissettoopeninthefirstquarterof2028.Jamaica0.30CaymanIslands10CompaniaCerveceriasUnidas,CaymanIslands0.18StVincentand8asubsidiaryofNetherlands-basedHeineken,isinvesting$2.7bntoTrinidad&Tobago0.17theGrenadinesincreasetheproductionandpackagingcapacityatitsmanufacturingplantinOthers0.65Guatemala6Luján,Argentina.ThefundswillalsogotowardsinnovationoperationsatTotal13.32Others27thesite.Thisisinadditiontoa$4.5bninvestmentatthesiteannouncedLatinAmericaandtheCapitalinvestmentSource:fDiMarketsTotal360in2020.Caribbeanmarketshare%($bn)Note:IncludesestimatesSource:fDiMarkets37.43%Mexico35.5718.78%Brazil17.84KEYTREND14.25%Guyana13.547.02%Argentina6.685.67%Chile5.394.51%Panama4.28MexicowasakeydriverofLatam’sgrowth,ranking3.73%DominicanRepublic3.54asthetopdestinationforprojects,capitalexpenditure2.56%CostaRica2.44andjobcreation.1.72%Colombia1.641.22%Peru1.163.11%Others2.96Source:fDiMarketsNote:IncludesestimatesTHEfDiREPORT2023TOPINVESTORS28Topforeigninvestorsin2022Switzerland-basedofficeproviderInternationalUS-basedonlineretailcompanyAmazonwasGermany-basedDeutschePostandUS-basedAutomotivefirmsGermany-basedVolkswagenWorkplaceGroup(IWG)wasthemostactivethesecond-mostprolificinvestorin2022forindustrialrealestatedeveloperPanattonirankedandNetherlands-basedStellantisrankastheforeigninvestorin2022.ThecompanyrecordedFDIprojects.Thefirmannounced50%fewerthirdandfourthwithinthetopinvestorsin2022joint-ninth-mostactiveoverseasinvestorsatotalof160foreigndirectinvestment(FDI)FDIprojectsthanin2021,whenitwasthebynumberofFDIprojects,investingin69andannouncing25FDIprojectseachin2022andprojects,anincreaseof36%onthepreviousmostactiveinvestor.Ofthe97FDIprojectsthe49FDIprojectsrespectively.Closelyrelatedtoinvesting$9.1bnand$5.4bnrespectively.year,andinvestedanestimated$324min2022.firmannouncedin2022,49werewithinthethisaretransportationandwarehousingfirmsStellantisannounceda$4.1bnelectricvehicleThecompanyposteditshighest-everrevenueincommunicationssector—78%ofthoseareAPMoller–MaerskandKuehne+Nagel,whobatterymanufacturingfacilityinWindsor,its34-yearhistorywith24%growthinsystem-withinICTandinternetinfrastructure,mainlyalsoplacedinthetop20mostactiveinvestingCanada,andVolkswagenistocreateanewwiderevenueto$3.8bnasmorecompaniestobuildandpoweritsdatacentres.US-basedcompaniesin2022andcollectivelyannounced£2.5bnfacilityatitssiteinCrewe,theUK,topermanentlyembracedhybridworkingmodels.technologycompanyAlphabet(theparent67FDIprojectslastyear.exclusivelymanufactureelectricvehicles.companyofGoogle)alsoannounced15projectsinthecommunicationssector—accountingfor58%ofitsFDIprojects.Ofthetop20mostactiveinvestingcompaniesCompaniesoperatingprimarilyinthecoal,oilandgasindustrymadeacomebackin2022.France-With$343.6bninvestedacross527projectsinin2022,fouroperateprimarilyinthesoftwarebasedTotalEnergies,US-basedExxonMobil,UK-headquarteredShellPLCandItaly-basedEniSpAtherenewableenergysectorin2022,itisfittingandITservicessector.Majortechnologyfirmsallrankedwithinthetop20companiesintermsofcapitalinvested.Thesecompanies,whilealsothatthereareseveralrelatedcompanieswithinsuchasAlibaba,UnityTechnologies,Danirandinvestinginrenewables,accountedformorethan$98bnincapitalinvestmentlastyear,whichequatesthetop20investors.SeveralcapitalintensiveAlphabetannouncedacombined106projectstoapproximately$1.7bnperproject.Investmentspurelyinfossilfuelprojectsaccountedfor$57.5bnFDIprojects,manyofwhichfallintogreenintheyearwithanestimatedcumulativecapitalofthetotalamountinvestedbythesecompaniesin2022withExxonMobilandShellPLCpostinghydrogen,wereannouncedbyTotalEnergies,investmentof$5.7bn.impressiverevenuesfor2022of$398.7bn(44%growthyear-on-year)and$381.3bn(46%growthEnergiasdePortugal,EniSpAandAcmeyear-on-year)respectively.Groupduringtheyear.THEfDiREPORT2023TOPINVESTORS29TOP20MOSTACTIVEFOREIGNINVESTORSWITHANNOUNCEDPROJECTSIN2022Poscowasthetopcompanyforcapitalinvestmentin2022.TheSouthKorea-basedironandsteelcompanyistoinvestanestimated$40.1bnoverseas,primarilyacrosstwomega-projectsannouncedinDecembertobuildagreensteelproductionfactoryandgreenhydrogenmanufacturingfacilityinAustraliaby2040.TheleadingcompanyforoverseasjobcreationwasHonHaiPrecisionIndustry(Foxconn).TheTaiwan-basedcompanyannouncedplanstocreateanestimated83,700jobsgloballyin2022.GiventhecontinuedhighdemandintheSource:fDiMarketsNote:Includesestimatessemiconductorindustry,threeofthetop20companiesbyoutwardcapitalinvestmentannouncedmajorprojectsinthesector.US-basedIntel,Taiwan-basedTaiwanSemiconductorManufacturingandUK-basedVedantaResourcesannouncedFDIprojectsvaluedat$28bn,$19.9bnand$13.9bnrespectively.THEfDiREPORT202330AboutfDiIntelligenceEditorsJacopoDettoni,GeraldineEwingAboutfDiIntelligenceProductsandservicesinclude:ContributorsfDiIntelligence–partoftheFinancialTimesGroup,isfDiMarkets–isthemostcomprehensivegreenfieldFDINicolaAllen,TomBecker,RossCooper,recognisedgloballyforitscrediblefullrangeofinvestmenttrackingdatabaseonthemarket,fromtheFinancialTimes.WeJoshuaCrawford,SarahDaly,JoshuaEllis,promotionandresearchsolutions.Relieduponbythemosthaveanunrivalledtrackrecordofreal-timedatasince2003.AlexIrwin-Hunt,TyroneKennedy,prominentFDIprofessionals,wehaveprovidedin-depthOurdataischosentopowerthemostinfluentialglobalFDIHenryLoewendahl,RachaelNevin,commentaryandcomprehensivedataandintelligencesinceanalytics,decisionmakingandidentifyfutureopportunitiesRachaelWarren,JonathanWildsmith2001andcontinuetopioneernewgroundbreakingproductsandtrends.tobetterserveourclients.Sub-editorsfDiBenchmark–istheonlycomprehensiveanalysistoolNicholasBunce,AndrewPetrie,Expandedportfoliothatcomparescostsandqualitiesofinvestmentdestinations.ElliotSmitherTheproductandconsultingdivisionsofWavteqGroupItsuniquepatentedalgorithmictechnologyisusedbyLimitedhavejoinedthefDiIntelligenceportfolio.Thebrands;locations,intermediariesandinvestorsaliketoassessglobalDesignAmplify,IncentivesFlow,InvestmentFlow,InvestmentMap,footprintstrategies.ParamjitVirdeeInfluencersandtheirstrategyanddevelopmentservicesgreatlycomplementourportfolio,offeringanunrivalledcentreGISPlanning–offersasuiteofindustry-leadingonlineForfurtherinformation,ofexcellenceglobally,providingnewsandanalysis,datatools,GISdataandmappingtoolstoattractinvestment,supportpleasecontact;eventsandstrategicguidancefortheindustry.businessandfacilitateresearchandanalysis.Theinteractivejacopo.dettoni@ft.comSaaStoolsarerobust,intuitiveandmobileresponsive,+44(0)7738695741engagingpotentialinvestorsdirectlyonInvestmentPromotionorAgencywebsites.fdiintelligence@ft.com+44(0)2077756667fDiIntelligencemagazine–firmlyestablishedastheworld’spremierpublicationforthebusinessofglobalisation.Publishedwww.fDiIntelligence.comonabi-monthlybasiswithanABC-certified,highlytargetedcirculationofmorethan14,000,fDiprovidescorporatePublishedbyThedecision-makerswithanup-to-dateimageoftheever-FinancialTimesLtdchangingglobalinvestmentmap.BrackenHouse1FridayStreetLondonEC4M9BT©TheFinancialTimesLtd2023DriveinvestmenttoyourlocationGISPlanningoffersinteractivewebtoolsthatprovidecomprehensivedemographicandindustrydatabusinessesneedtomakesuccessfulsiteselectiondecisionsinyourlocation.Featuresinclude:•Propertysearch•Thematicmapping•Demographicanalysis•Seamlesswebsiteintegration•IndustrymappingDiscoverourlatestonlinedatatoolincollaborationwithProPanama:properties.zoomprospector.com/panamaLearnhowyourorganisationcanbenefittoday.Contactuson+44(0)2077756667orvisitgisplanning.comCustomisedforeigndirectinvestmen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