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In this page: FDI in Figures | Why You Should Choose to Invest in New-Zealand | Procedures Relative to Foreign Investment | Investment Opportunities

 

FDI in Figures

In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), its shares directed to developed economies has reached an historic low. Macroeconomic fragility and policy uncertainties are driving investors to caution.

New Zealand's FDI stock, in relation to the GDP, represents practically the double of that of Australia and Canada and three times larger than that of the Scandinavian countries. Most of the FDI inflow stock in New Zealand comes from the United States, Australia, the United Kingdom and the Netherlands. Japan, the APEC countries and the rest of Europe are small investors in New Zealand. 

The flows of FDI in New Zealand reached a high of almost USD 5 billion in 2008. However, these flows have petered out with the economic crisis, mainly due to the decrease in imports of goods. Despite this, the country has maintained a high level of attractiveness, even if the FDI level of 2013 (USD 3 billion) is in the decrease of over USD 1 billion compare to the previous year. 2014 is looking far better in term of potential FDI in the country.

Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).

 

Country Comparison For the Protection of Investors

  New-Zealand OECD United States Germany
Index of Transaction Transparency* 10.0 6.0 7.0 5.0
Index of Manager’s Responsibility** 9.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 7.0 9.0 5.0
Index of Investor Protection**** 9.7 6.1 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 4,1422,202987
FDI Stock (million USD) 74,47982,36284,026
Performance Index*, Ranking on 181 Economies 146--
Potential Index**, Ranking on 177 Economies 71--
Number of Greenfield Investments*** 514547
FDI Inwards (in % of GFCF****) 14.16.82.9
FDI Stock (in % of GDP) 45.648.146.3

Source: UNCTAD - Last Available Data.

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.

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Why You Should Choose to Invest in New-Zealand

Strong Points

New Zealand’s efficient, market-driven economy delivers key benefits to investors, including company stability, numerous free-trade agreements and active government support for investment. The country's strong points are:

- An efficient market-oriented economy;
- A stable and secure environment with modern infrastructures, that supports robust and sophisticated telecommunications, roads, rail, sea and energy networks;
- A highly educated, flexible and multi-skilled workforce;
- Property costs that are amongst the most competitive in the Pacific;
- Free circulation of capital;
- A simple taxation system;
- 100% tax deductibility for corporate research and development;
- One of the world's lowest customs rate.
For further information on investments in New Zealand, refer to New Zeland Trade and Enterprise
Weak Points
The main weak points are its geographical isolation, climate hazards and a limited local market.
Government Measures to Motivate or Restrict FDI
The government has put into place new tax incentives to promote FDI. The 2005 law on foreign investments was simplified and now facilitates foreign investors' access to the domestic market. Nevertheless, the government amended the Overseas Investment Act so as to better protect "strategic infrastructures" in 2008.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Guaranteed.
Acquisition of Holdings
A majority holding interest in a local company by a foreign investor is legal in New Zealand.
Obligation to Declare
The Overseas Investment Act 2005 regulates the acquisitions by overseas persons of 25% or more ownership or control interests in sensitive New Zealand land and significant business assets (over 50 million Euros).For more information, go to Legislations of New Zealand.
Competent Organization For the Declaration
Land Information New Zealand
Requests For Specific Authorizations
Section 10 of the Overseas Investment Act 2005 states that a transaction requires consent if it will result in an overseas investment in sensitive land or an overseas investment in significant business assets. Section 57B of the Fisheries Act 1996 states that a transaction requires consent if it will result in an overseas investment in fishing quota.

Learn more about Foreign Investment in New-Zealand on Globaltrade.net, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Investment New Zealand
New Zealand Overseas Investment Commission
Tenders, Projects and Public Procurement
Ministry of Economic Developement, Government Procurement
Tenders Info, Tenders in New Zealand
Globaltenders, Tenders & Projects from New Zealand
DgMarket, Choose your country
Other Useful Resources
NZ Investment Network.
 
 

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Learn more about Investing in New-Zealand on Globaltrade.net, the Directory for International Trade Service Providers.

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Last Updates: October 2014