Despite the scandals that hit the government of Brazilian president Luiz Inácio Lula da Silva last year, investors do not seem to have cooled to South America’s largest economy.

The US state of Indiana has won the deal to be the location for a highly sought-after Honda auto factory. The $550m passenger-car assembly plant, the Japanese company’s sixth in North America, will be located in the community of Greensburg and will produce 200,000 fuel-efficient cars a year.

The International Court of Justice has ruled that Uruguay can proceed with the construction of two pulp mills that had been challenged by Argentina due to environmental concerns (see fDi news, June/July 2006).

A growing trend among US venture capital firms is migration into later-stage investing. For a start, they have more money. Since 2000, median fund size has risen from $100m to $200m; investments in the first six months of 2006 were the highest in five years.

Welcome to Europe: 37 countries, speaking 31 native languages, a combined population of 596 million, a combined GDP of $14,049bn, and more than 500 investment promotion agencies all wanting your investment.

While most other European investment promotion agencies focus their US strategies on wooing companies from New York, Boston and San Francisco, the French region of Côte D’Azur is targeting the southern city of Atlanta and its surrounding areas.

Foreign funds totalling £18bn ($34bn) poured into the UK economy during the second quarter of the year as overseas companies spent six times as much money on UK assets as UK companies spent on foreign assets, according to figures published by the Office of National Statistics.

The conflict in Lebanon has been a particularly bitter pill for the country’s business community – as well as multinationals interested in this market – as economic progress looks to be reversed.

Motorola is to use Singapore as the global supply chain control tower (SCCT) for a range of supply chain management activities across its businesses.

A booming economy, a housing shortage and growing demand are combining to create lucrative opportunities for foreign investors in Indian property.

Urgent action is required by the heads of US companies to understand and invest in the Asian market if they are to avoid slipping behind their European rivals, says Lawrence Yeo.

For enterprises great and small, the Board of Investment of Thailand is waiting to assist foreign businesses.

Legal challenges from the world of foreign direct investment. By Luke Peterson.

Monster, the Massachusetts-based online career network, has made a significant investment in southern Europe, with the creation of a southern European centre and customer support operation in Marseille, France.

Larry Bock, executive chairman of Nanosys, tells Karen E Thuermer that the US must stimulate investment if it is not to lose out to global competitors in the race to develop nanotechnology.

Dai Xianglong, mayor of the city of Tianjin, fully intends to trigger the third wave of China’s economic development and at the same time shift its economic centre of gravity northwards. Tom Blass reports.

Each year, through the Personality of the Year awards, fDi recognises the political and business leaders around the world who have been the most proactive, dynamic and innovative in securing foreign investment and improving the business environments of their jurisdictions. Regional winners are selected for Africa, Asia, Europe, Latin America, the Middle East and North America; out of these candidates a global winner is chosen. Meet the 2006 winners.

“I’m simply bowled over,” was Ontario premier Dalton McGuinty’s reaction to being named fDi’s Personality of the Year 2006. But his win should not come as too great a surprise. Outgoing and upbeat in that very North American way, Mr McGuinty displays an infectious enthusiasm when outlining his plans for the Canadian province.

Mayor Patrick Ramiaramanana has a clear priority for his time in office: to make the capital of Madagascar “a developed and clean city where people enjoy living”.

Dato Seri Rafidah Aziz, minister of international trade and industry of Malaysia for the past 15 years, stole the show at a well-attended Malaysia investment road show in Birmingham, England, in March. A fraction of the size of most of the other speakers, the diminutive dynamo commanded the stage. Never was she more charismatic than when talking up Malaysia.

Sometimes, to secure a fiercely fought-over inward investment, it is not only the buy-in of high-ranking political officials that is needed but also their active involvement.

Honduras is one of the poorest and least developed countries in Latin America, with two-thirds of the population living in poverty and sky-high unemployment. To solve these problems, FDI is badly needed but, given the limited size of the domestic market and the fierce competition from countries with good access to the US market such as Mexico, the challenges are many.

Selecting the Personality of the Year for the Middle East was not difficult – one name came up repeatedly: Mohammed Alabbar. A close confidant of Dubai’s Crown Prince, Sheikh Mohammed bin Rashid Al Maktoum, Mr Alabbar is arguably one of the most influential men in the Middle East.

Tax credits and incentives to promote the production of renewable energy may be fuelled partly by green ambitions but the economics are also becoming more attractive as the value of the global renewable energy market grows. Karen E Thuermer reports.

Fifteen years after regaining independence, Lithuania is tying itself tightly to European and multilateral frameworks while its economy is taking off. James Hydzik reports.

Retail businesses, biotechnology and high-tech industries all need space to expand as development spreads across the country and individual purchasing power grows. fDi reports on how and where real estate space is being found.

Vilnius is wasting no time in helping projects that attract foreign investment get under way, as it continues to drive Lithuania’s economic expansion. James Hydzik reports.

Protective of its natural beauty, the coastal city of Klaipeda is nonetheless open to trade, transit and tourism, writes James Hydzik.

Opportunities in transport and logistics in Lithuania are among Europe’s best. Some are due to the country’s Baltic location; others are a result of 20th-century development and the creation of infrastructure designed to meet the needs of a continent-wide empire.

János Kóka, Hungary’s minister for economics and transport, tells fDi how the country is accelerating economic development and gaining on the EU average.

Murcia’s strength and appeal as an investment destination is growing.

Neither UK firms nor anti-corruption campaigners are totally satisfied at the outcome of a government review of anti-corruption provisos. By Tom Blass.

ICICI One Source’s decision to open centres in Northern Ireland has been heralded as an example of an Indian company ‘reverse outsourcing’ back to western Europe. But, as Courtney Fingar explains, this is not strictly accurate.

An economic slowdown has dampened Turkey’s housing boom. But the building of shopping malls, commercial offices and hotels remains brisk, as the nation’s real estate market attempts to recover from crisis. Metin Demirsar reports.

ESBAS manufacturing zone offers an idyllic location for western businesses wanting to set up in Turkey.

Foreign investment is pouring into Turkey’s real estate sector, with avid interest in projects for shopping malls, hypermarkets, office blocks and residential housing, Metin Demirsar reports.

On the outskirts of Istanbul, the Hektas Construction Companies Group is building a new, environmentally friendly residential neighbourhood for upper income families on 82.5 acres of land. Scheduled for completion in 2008, Idealist Kent (kent means ‘city’ in Turkish) will be the home of 4000 inhabitants.

Turkey’s massive young population is driving the skyrocketing demand for homes, and especially public housing. Metin Demirsar reports on the projects that offer opportunities for investors.

The Pride of Turkey offers a one-stop shop for those wishing to invest in Turkish property.

July’s elections bring hopes for the creation of a consensual government that will further Macedonia’s economic development and lead the country to EU accession. Tom Blass explains.

Mladjan Dinkic, Serbia’s minister of finance, tells Ben Aris that the country’s economy is buoyant but needs foreign investment to build on the growth.

Russia’s most European city is building on its positive economic story to bring in more investment, with its strong trade links, port facilities and range of successful industries, writes Jules Stewart. And its efforts are paying off.

Yury Molchanov, deputy governor St Petersburg, tells fDi what the city government is doing to attract investors.

Foreign corporations are already moving into St Petersburg but the city is trying to make itself even more attractive through investor-friendly tax policies, simpler bureaucracy and better infrastructure. Jules Stewart reports.

Being Europe’s fourth-largest city by population, St Petersburg is highly attractive to foreign banks, which are snapping up local players, and bringing in huge amounts of capital to offer in loans to corporates and consumers. By Jules Stewart.

Roads, football stadiums, theatres, hotels and office blocks are among construction projects planned or under way in the city centre, as industry is moved out to make space for tourism and services. fDi reports.

The luckier international executives can end up on assignment in a vibrant party capital or a relaxing beauty spot – or both, if they are particularly fortunate. fDi picks out the 20 best places for an expatriate posting.
Reporting by Brian Caplen, James Eedes, Dominic Ellis, Courtney Fingar, Sarah Gilbert, James Hydzik, Erika Morphy and Kala Rao.

NEW YORK

The expat town par-excellence, New York really does feel like the centre of the universe.

By expanding its port facilities, the city of Jacksonville has ended its dependence on the military and attracted big-name businesses. Karen E Thuermer explains.

Risk underwriters are concerned about the leftward tilt of parts of South America. Could foreign investors turn away from these countries altogether? Jason Mitchell reports.

Perceptions of African capital markets have improved and portfolio investors are targeting sub-Saharan countries in particular. But will inflows fall with commodity prices? James Eedes reports.

A little-known US government agency has been quietly enabling prosperous small and medium-sized businesses to grow across Africa for 25 years. By David W Blaine.

Trade facilitation initiatives such as electronic file documenting and streamlined customs can generate substantial savings for businesses, says Catherine Truel.

Finding the optimal site for locating a new plant is not only vital for the success of the new business but also a difficult task for management. Site selection consultants can help. Marcel De Meirleir explains how.

Tillmann Sachs, Robert Tiong and Daniel Wagner examine perceptions of political risks and their influence on investment decisions into Asia.

With its stable political and economic environment, Tatarstan is moving ahead with oil, gas and construction projects, and is welcoming local and foreign investment with open arms. Ben Aris reports.

The optimistic mood of government and business is a result of a well targeted economic and social strategy that builds on established sectors and encourages entrepreneurship. John McCarthy reports.

The Tatarstan government believes small and medium-sized enterprises are best placed to create big gains in high-tech.

With Russian demand for petro-chemicals set to double, Tatarstan ramps up production.

Tatarstan’s progressive attitude towards economic reform and business-friendly legislation contribute to its positive investment profile. John McCarthy reports.

Tatarstan’s manufacturing sector is thriving, and the government’s drive to create high-technology clusters around key firms will only benefit it further.

Ilsur Metshin, the mayor of Kazan, talks to John McCarthy about the future of the city and plans to bring its infrastructure up to EU standards.