State-owned investment in developing economies reached a decade-high of $65bn last year, Alex Irwin-Hunt, FDI Intelligence. This article underlines the opportunity for the APAC investment promotion communities to develop investable project pipelines and proactive strategies to attract institutional investors. In a recent training, we concluded with UNESCAP with 20 IPAs found that only 20% have any plans on investable project pipelines and attracting institutional investors!
The FDI angle:
State-backed investors have grown in number and importance.
Their shift of investment to emerging markets could have huge implications for international business.
Why does it matter? More state-backed investment in emerging markets has come at the expense of more developed regions where there is greater scrutiny of investment.
The mammoth influence of state-backed investors is expected to grow. GlobalSWF forecasts their total global assets to reach $50tn by 2030. The World Bank has said that developing countries need an “investment boom” to shore up low growth forecasts. The SWF shift to emerging markets ought to be closely watched by economic developers and corporate leaders alike.
