UN World Investment Report 2010 - Office of Trade Negotiations

CHAPTER I Global Trends in FDI 15
centrated on developed countries in North
America and the EU. In 2009 and the first
five months of 2010, SWFs increased their
FDI in Asia, 25 which had been much less
affected by the financial market crisis and
the economic downturn.
SWFs’ investment prospects are also influenced
by other considerations. Their growing
foreign investment activities have raised
concerns that they could be a possible threat
to national security and to the market-based
economies of host developed countries.
Some recipient countries have tightened their
investment regimes, or otherwise regulated
FDI (chapter III). 26 SWFs have responded
by making efforts to improve transparency,
by adopting a set of rules known as the
Santiago Principles. A study of the 10 largest
SWFs carried out by RiskMetrics found
that they fully complied with a total of 60
per cent of these Principles (RiskMetrics,
2009). This could help reduce concerns in
host countries about the implications of their
investments.
Figure I.11. FDI a by sovereign wealth funds, by main target sectors, 2007–2008 and
2009–May 2010 b
Other services
18%
Trade
5% Business
activities
9%
Mining, quarrying
and petroleum
20%
Other
primary
0%
Finance
36%
Motor vehicles
and other
transport
equipment
8%
Other
manufacturing
4%
Other
manufacturing
3%
Trade
11%
Motor vehicles
and other transport
equipment
36%
Business
activities
9%
Electric, gas
and water
distribution
8% Other
services
7%
Source: UNCTAD, cross-border M&A database (http://www.unctad.org/fdistatistics).
a Cross-border M&As only. Greenfield investments by SWFs are assumed to be extremely limited.
b For 2010, January to May only.
Mining,
quarrying and
petroleum
26%