FDI in Australia
FDI in Figures
In terms of foreign direct investment (FDI), Australia is ranked 13th in the world but 3rd in the Asia-Oceania zone, behind Hong-Kong and China (since 2005). Traditionally, Australia is an investment destination. Its economic liberalism, its stability and judicial system transparency, combined with strong economic growth of more than 15 years, make up for the narrowness of its market and its geographical isolation, and make it a desirable destination. The effects of the 2008-2009 financial crisis have not harmed its capabilities and Australia remains a valued destination to a number of investors.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||45,477||46,722||22,572|
|FDI Stock (million USD)||385,042||305,519||328,090|
|Performance Index*, Ranking on 141 Economies||70||61||69|
|Potential Index**, Ranking on 141 Economies||20||21||-|
|Number of Greenfield Investments***||177||239||252|
|FDI Inwards (in % of GFCF****)||16.8||15.3||7.2|
|FDI Stock (in % of GDP)||40.5||29.5||33.5|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
FDI Inflows By Countries and Industry
|Main Investing Countries||2009, in %|
|Main Invested Sectors||2009, in %|
- Form of Company Preferred By Foreign Investors
- Proprietary Limited companies (PTY Ltd)
- Form of Establishment Preferred By Foreign Investors
- The subsidiary company
- Main Foreign Companies
- All the multinationals and large world groups are present in Australia, from petroleum companies such as BP or CALTEX to aeronautical companies with BOEING and AEROSPATIAL, to telecommunication companies (VODAFONE, ALCATEL) or services (AXA, ALLIANZ). In 2008 more than 900 multinationals have their regional headquarters or operational centers in Australia.
- Sources of Statistics
Australian Bureau of Statistics
Why You Should Choose to Invest in Australia
- Strong Points
- The customary Australian dynamism, its economic robustness, its strong growth, stable and juridically reassuring business environment and position as a practical access platform for certain markets, like New Zealand and the Pacific islands, make this country a choice target for establishment.
- Weak Points
- Reduced competition in some sectors can limit returns on scale. Lack of investment in transport and telecommunication infrastructures sometimes slows down growth in some sectors.
- Government Measures to Motivate or Restrict FDI
- Foreign companies get assistance, especially for productive investment, R&D, professional training and job creation. For many years, the amount of administrative formalities for setting up foreign companies has been reduced.
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