FDI in Australia

Overview by Globlatrade.net:

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 200720082009
FDI Inward Flow (million USD) 45,47746,72222,572
FDI Stock (million USD) 385,042305,519328,090
Performance Index*, Ranking on 141 Economies 706169
Potential Index**, Ranking on 141 Economies 2021-
Number of Greenfield Investments*** 177239252
FDI Inwards (in % of GFCF****) 16.815.37.2
FDI Stock (in % of GDP) 40.529.533.5

Source: UNCTAD

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 %
United States 22.7
UK 14.5
Japan 10.3
Netherlands 7.7
Switzerland 4.0
Germany 3.8
Singapore 3.6
Main Invested Sectors 2009, in %
Mining 50.0
Services 17.0
Real estate 13.0
Manufacturing industry 11.0

Source: Australian Bureau of Statistics, International Investment Position: Supplementary Statistics 2009

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

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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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