With a total GDP of over $10t and 17,110 FDI projects in the last five years, the greater Mediterranean region is already one of the most attractive FDI destinations worldwide, according to the new ‘EY BaroMed 2015- The Next Opportunities’. Countries covered by EY’s BaroMed 2015 attracted 17,110 FDI projects between 2009 and 2013, primary directed to EU Mediterranean and the Gulf countries (78% of the two sub regions).
Because of the rarity of acquisitions targets and untapped potential in the region as a whole, M&A made up 35% of the total FDI during the period, while greenfield investment represented 65%. Greenfield investment alone totaled US$ 85.5 billion in 2013 in EU, more than such investments attracted in China.
“If integration and collaboration within the Mediterranean region continue to be encouraged, in the next few years we could see a new emerging growth area on the world map – says to Food Donato Iacovone, EY mediterranean managing partner – . The region expects to see positive growth prospects in the near future and investors are taking note. Thanks to this untapped markets and its well-established resources and stability, not only Europe and the US, but also China and India are looking at the area as an attractive destination”.
Sectors of the future are telecommunications and media technology (17,3% of the region promises opportunities in business investments), food and retail consumer products (15.4%) and energy (11.7%). Indeed, in these sectors companies drew the most m&a operations over the period. To serve manufacturing deals, investors are looking for business operations in Food and retailing sector where they increased appetite. Turkey and Balkans are rapid growth countries and Italy also can play a key role.
