Investment and trade

Foreign Direct Investment (FDI) holds significant potential to guide Southern Mediterranean  economies towards achieving the Sustainable Development Goals (SDGs). It can help generate quality jobs, enhance skills, and foster innovation. However, realizing the sustainable development benefits of FDI is not guaranteed. To unlock this potential, it is crucial to carefully assess current policies and the impact of FDI on sustainable development. 

The FDI Qualities Review of Jordan and Tunisia provide key indicators of FDI impacts and an analysis of how the regulatory framework for investment affects four SDG-related dimensions: (1) Productivity and innovation of local SMEs; (2) Job creation, quality jobs, and skills; (3) Gender equality; and (4) Energy transition/green economy; as well as recommendations to enhance this impact. 

FDI statistics can be an important input for evaluating the impact of reforms to improve the investment climate in countries. Policymakers may seek to improve data collection of FDI statistics, including via the adoption of a common definition and greater harmonisation of data collection methods within and across countries. To support informed policymaking, the OECD has undertaken reviews of compilation of FDI statistics. These reviews assess countries’  implementation of the international guidelines for FDI statistics, including the OECD’s Benchmark Definition of Foreign Direct Investment (BD4), and make concrete recommendations for improvement. The OECD also organised a series of capacity buildings to advance the methodology in compiling FDI statistics at a national level with a number of beneficiary economies. 

Capacity-building trainings on FDI Statistics with Egypt

Following the 2018 OECD FDI statistics Review of Egypt, the OECD conducted a series of capacity buildings in the context of the Programme, to support Egypt in its collection of FDI statistics with the objective of promoting adherence to BD4. Workshops aimed at supporting the General Authority for Investment (GAFI) with sampling methods, the reconciliation between FDI flows and stocks and in advancing their methodology for compiling greenfield investment and extension of capacity statistics. Egypt’s progress in this field is also monitored through its membership in the OECD Working Group on International Investment Statistics (WGIIS). 

The OECD Review of Foreign Direct Investment Statistics of Libya assesses recent FDI trends in Libya and offers recommendations to improve and expand the compilation of FDI statistics in Libya. 

More institutionalised and systematic public-private dialogues (PPDs) on investment policy reforms are essential to enhance the competitiveness of strategic sectors and ensure efficient implementation of reforms.

The Programme organised several policy dialogues between the private and public sectors from beneficiary economies and peer countries, such as the pharmaceutical sector in Tunisia, infrastructure in Egypt, agrifood in Morocco, ICT in Jordan, and renewable energy in Algeria, building capacity, communities of practice and networks to discuss how to promote and implement reforms to attract investments in strategic sectors. These dialogues were guided by issues papers with policy recommendations based on the outcomes of discussions and inputs from relevant stakeholders.

• Promoting investment and business climate reforms in Tunisia’s pharmaceutical sector
• Promoting investment and business climate reforms in Egypt’s infrastructure sector
• Promoting investment and business climate reforms in Jordan’s ICT sector
• Promouvoir les réformes du climat de l’investissement dans le secteur agroalimentaire au Maroc

Facilitating regional policy dialogue through peer-learning seminars and capacity-building events on investment regulatory reforms is essential for rethinking and reshaping business environments and regulatory frameworks. As part of the Programme, several regional seminars and dialogues were organised, bringing together policymakers from beneficiary economies and peer countries. These events aimed to build the capacities of government representatives and promote peer learning across various areas of investment policy, sectors, and economies.

The Regional Dialogue on Investment Promotion and the Digital Transformation built on peer learning exchanges to share best practices and support capacity building of Investment Promotion Agencies of the focus economies.

• Regional seminar on the prevention and avoidance of investment disputes (Cairo, July 2023)
• Regional seminar on Investment for sustainable development: focus on incentives and skills development (Istanbul, June 2023)
• Regional meeting on mobilising the private sector for sustainable investment in the MENA region (Tunis, November 2023).