< Previous78 MAY 2019 SI T E S E L E C T IO NNumber of ProjectsAmount of Investment0100020003000400050006000IraqIranLebanonSaudi ArabiaJordanQatarIsraelBahrainOmanUnited Arab EmiratesMiddle EastTop 10 countries by investment value per capita01100022000330004400055000IraqLebanonIranQatarJordanSaudiArabiaBahrainIsraelOmanUnited ArabEmirates01020304050Middle EastTop 10 countries by total amount of investment and investment projectsInvestment Value (in US$ Millions)Number of Projects 1. United Arab Emirates 2. Oman 3. Israel 4. Bahrain 5. Saudi Arabia 6. Jordan 7. Qatar 8. Iran 9. Lebanon 10. Iraq 1. United Arab Emirates 2. Oman 3. Bahrain 4. Israel 5. Qatar 6. Jordan 7. Saudi Arabia 8. Lebanon 9. Iran 10. Iraq best to invest per capita overall best to invest S I T E S E L E C T I O N MAY 2019 790306090120150VenezuelaBoliviaParaguayPeruEcuadorBrazilArgentinaColombiaUruguayChileSouth AmericaTop 10 countries by investment value per capita080016002400320040004800VenezuelaBoliviaParaguayPeruEcuadorUruguayArgentinaColombiaChileBrazil0102030405060South AmericaTop 10 countries by total amount of investment and investment projectsInvestment Value (in US$ Millions)Number of Projects 1. Chile 2. Uruguay 3. Colombia 4. Argentina 5. Brazil 6. Ecuador 7. Peru 8. Paraguay 9. Bolivia 10. Venezuela best to invest per capita 1. Brazil 2. Chile 3. Colombia 4. Argentina 5. Uruguay 6. Ecuador 7. Peru 8. Paraguay 9. Bolivia 10. Venezuela overall best to investNumber of ProjectsAmount of InvestmentRankings and charts based on data from Conway Projects Database; World Bank Doing Business 2019; WEF Global Competitiveness Report and historical dataset; UNDP Human Development Index (see p. 83 for methodology).80 MAY 2019 SI T E S E L E C T IO NRankings and charts based on data from Conway Projects Database; World Bank Doing Business 2019; WEF Global Competitiveness Report and historical dataset; UNDP Human Development Index (see p. 83 for methodology).01020304050607080NepalBangladeshPakistanMaldivesSri LankaIndiaSouth AsiaTop 6 countries by investment value per capita1000030000500007000090000020000400006000080000100000MaldivesNepalBangladeshPakistanSri LankaIndia080160240320400South AsiaTop 6 countries by total amount of investment and investment projectsInvestment Value (in US$ Millions)Number of Projects 1. India 2. Sri Lanka 3. Pakistan 4. Bangladesh 5. Nepal 6. Maldives 1. India 2. Sri Lanka 3. Maldives 4. Pakistan 5. Bangladesh 6. Nepal best to invest per capita overall best to investNumber of ProjectsAmount of Investment S I T E S E L E C T I O N MAY 2019 8102004006008001000SwitzerlandBelgiumFinlandLuxembourgAustriaSwedenNetherlandsUnited KingdomGermanyIrelandWestern EuropeTop 10 countries by investment value per capita20006000100001400018000040008000120001600020000BelgiumFinlandSpainFranceAustriaSwedenIrelandNetherlandsGermanyUnitedKingdom0100200300400500Western EuropeTop 10 countries by total amount of investment and investment projectsInvestment Value (in US$ Millions)Number of Projects 1. Ireland 2. Germany 3. United Kingdom 4. Netherlands 5. Sweden 6. Austria 7. Luxembourg 8. Finland 9. Belgium 10. Switzerland best to invest per capita 1. United Kingdom 2. Germany 3. Netherlands 4. Ireland 5. Sweden 6. Austria 7. France 8. Spain 9. Finland 10. Belgium overall best to investNumber of ProjectsAmount of Investment82 MAY 2019 SI T E S E L E C T IO NINVESTMENT PROFILE:NORTH MACEDONIA FREE ZONESNorth Macedonia’s free zones play a key role in the newly renamed country’s economic growth plan.North Macedonia is an ideal location for expanding our production,” said Dietmar Siemssen, CEO of Düsseldorf, Germany–based Gerresheimer AG, in March 2019 when the company announced it would invest tens of millions of euros in a new plant making plastic systems and prefillable syringes that could employ up to 400. “The country offers good infrastructure, cost structures, trained personnel and excellent support from the authorities.”Essential to that good infrastructure is the network of free industrial zones, where Dura Automotive is investing €18 million (with plans to double that amount within 10 years), and hiring 500 at a new plant. Swiss electronic sensor firm Baumer is investing around €9 million, with 300 to 350 jobs planned.The big news, however, is North Macedonia itself — a new name for the country that became constitutionally official in January after successful high-level negotiations with Greece.North Macedonia Deputy Prime Minister Koco Angjushev and Aleksandar Mladenovski, CEO of North Macedonia’s Free Zones, talked to me about the country's strong value proposition today. Angjushev, appointed Deputy Prime Minister for Economic Affairs in June 2017, is a longtime professor of mechanical engineering and business leader who knows what it takes to lead a firm, and says countries must meet certain preconditions to attract one.“The first one is rule of law, so that all parties are directly protected. In that regard, our country has invested its maximum efforts, and not a single economic entity or economic operator in the country has issues with the rule of law. The second component is that the investor should feel that the capital is safe and that the country is stable. When it comes to stability, this government has done more than any other so far, especially by resolving all open disputes with our by ADAM BRUNSadam.br uns @ site s ele c tion.c omDeputy Prime Minister Koco AngjushevS I T E S E L E C T I O N MAY 2019 83neighbors and by joining NATO. Finally ... is the fact that every investor wants to see that they will achieve economic benefi t. at is precisely why we structured the measures for fi nancial support of investments in a way that all entrepreneurs want to see. I believe that we have the most competitive measures in the region and beyond."Last year those measures contributed to signing FDI agreements, reaching the highest annual level of FDI in history: € million. “ is is % of the GDP and is three times more compared to the average of the previous years,” says the deputy prime minister.Skopje dominates as a metro area, accounting for more than % of the nation's GDP, and ranking in the top fi ve in Eastern Europe and Central Asia in the automotive, energy and chemicals/plastics sectors in the World's Most Competitive Citiesreport. But the region has no monopoly on zones. A prime example is the eastern city of Stip, where a textile heritage means skilled local workers are available to investors.“Other regions in the country are more conducive to other industries and specialization, such as electronics or automotive," Mladenovski says of the free zones, which have helped nearly halve unemployment from % to .%. "Additionally, with infrastructure improvements such as completion of construction of the Skopje-Stip highway, only minutes will be needed to travel between Stip and Skopje.” e infrastructure of success includes a service and supply ecosystem of North Macedonian fi rms, as well as partnerships with universities. Tailor-made vocational training programs have been created at the University of St. Cyril & Methodius, as well as the University of Bitola to develop potential employees for such companies as Adient (formerly Johnson Controls, investing $ million in Stip and Strumica), Johnson Matthey, Kromberg & Schubert and Dräxlmaier.Small Is BeautifulDeputy Prime Minister Angjushev is familiar with European clusters of engineering talent. Asked how his country’s workforce measures up, he says, “One of the advantages of our country is that we have good personnel — young, intelligent and well educated people." Being small has its benefi ts, he says, “because we can adjust the programs of the faculties to the needs of foreign investors." Moreover, companies can be subsidized up to % of the cost of investment by the government, using the instruments for direct fi nancial support and tax and customs subsidies. e EU’s Stabilization and Association Council has complimented North Macedonia on its “neighborly” approach with Greece, Bulgaria and others. Angjushev says cooperation with neighbors that has come about through the Berlin Process (whereby Balkan states gradually integrate with the EU) has intensifi ed, and already is yielding results, including reduction of administrative barriers, easier border crossing and re-engagement with companies.India’s Malhotra Cables fi rst considered investing in North Macedonia in . “ e project ultimately did not succeed then,” Mladenovski says, “but I am pleased to announce that Malhotra has now decided to invest in the Skopje free zone, and will produce cables for the automotive industry.”Word of mouth from such companies is the country’s best marketing, says Angjushev, but the government is taking things further, opening new offi ces in the U.S., Germany and the Middle East.Free zones are working for industry. But North Macedonia also could be called a leisure and tourism zone, with wineries and wine districts, UNESCO-protected Lake Ohrid, several ski destinations and a range of arts festivals. Deputy Prime Minister Anjushev says foreign visitors not only feel welcome, but tend to linger, “because the people are friendly, life is good, and the food and nature are excellent. I personally know many people who came here and do not want to leave.” When it comes to supporting global companies’ growth, North Macedonia’s free zones aim to do the same. This Investment Profile was prepared under the auspices of the Republic of North Macedonia Free Zones (DTIDZ). For more information, visit www.fez.gov.mk.NORTH MACEDONIANORTH MACEDONIANORTH MACEDONIANORTH MACEDONIANORTH MACEDONIANORTH MACEDONIANORTH MACEDONIAAleksandar Mladenovski, CEO of North Macedonia’s Free Zones84 MAY 2019 SI T E S E L E C T IO N e th annual Global Best to Invest Awards are based in part on capital investment into private-sector facilities in each country (total projects and per-capita projects) as compiled by Conway Analytics, proprietary data produced by Site Selection parent company Conway, Inc. Qualifying projects are corporate facility investments (from both FDI and domestic expansion) that contribute to the stability and growth of the areas in which they are made by meeting at least one of the following three criteria:• Represent a minimum investment of US$ million• Create a minimum of new jobs• Involve at least , sq. ft. (, sq. m.) of new space(continued from p. 74)21213716176314918510 S I T E S E L E C T I O N MAY 2019 8511148 1 Bahrain• Bahrain Economic Development Board 2 Belgium• Invest in Wallonia 3 Chile• InvestChile 4 Colombia• Invest in Bogota• ProColombia• Invest Pacific 5 Costa Rica• Costa Rican Investment Promotion Agency 6 Egypt• General Authority for Investments 7 Germany• Berlin Partner• German Trade and Invest 8 Hong Kong• Invest Hong Kong 9 Hungary• Hungarian Investment Promotion Agency 10 Israel• Invest in Israel 11 Malaysia• Malaysian Investment Development Authority• InvestKL 12 Morocco• Invest in Morocco 13 Panama• Panama Pacifico 14 Singapore• Singapore Economic Development Board 15 South Africa• Durban Investment & Promotion Agency• Trade & Investment KwaZulu-Natal 16 Trinidad and Tobago• InvesTT 17 Turkey• Izmir Development Agency• ESBAS 18 United Arab Emirates• Dubai FDI• Abu Dhabi Department of Economic DevelopmentTOP IPAS WITHIN B2I COUNTRIES* global* See Top IPAs on p. 89The following three data sets are also used to compile these proprietary rankings:• World Bank Doing Business 2019, which gauges a nation’s ease of doing business• Overall ranking in the 2018 Global Competitiveness Index Rankings from the World Economic Forum• Global Competitiveness Report 2007-2017 from the World Economic ForumHang-wringing about the future should never obscure the achievements of the year gone by, nor diminish the rightful pride felt by those involved in creating these successes. We congratulate the countries recognized in these important rankings, the investment promotion agencies whose work is so critical to this success, and the families whose lives are made better by all this economic activity. by ADAM JONE S -K ELLE Yadamjk@ site s ele c tion.c omQ&A: JUAN GUAIDÓAFutureVenezuela?for86 MAY 2019 SI T E S E L E C T IO NIn the not too distant past Venezuela was the th wealthiest nation in the world per capita. Today the country teeters on the brink of total collapse, with mass starvation or mass exodus the only options for many. How the hell did this happen?Pundits and politicians, mostly on the right, insist that socialism is to blame. ey would be wrong.As Site Selection friend and contributor Peter Zeihan recently noted, “ e Venezuelan system isn’t socialist at all. It hasn’t been for a long time. When a socialist government takes over a productive asset, it runs that asset with an eye towards furthering some government goal. Perhaps not competently, but keeping seized assets operational so they can provide this or that input is sort of the point. For at least the past decade when the Venezuelan government has taken over something — say a farm — they instead loot it like a fl ock of locusts and simply leave it to lie fallow. is isn’t socialism, or even mismanagement — this is kleptocracy. Suffi ce to say, since roughly the middle of the Chavez eraw in the late s, the only thing socialist about the Venezuelan system has been the propaganda.”All photos by Leo Alvarez S I T E S E L E C T I O N MAY 2019 87Chavez’s successor, Nicolas Maduro, happily raced up to the fi re and poured gas all over it, presiding over one of the worst economic collapses in human history, bringing his country to the brink of disaster, infl icting monumental misery and suff ering on his people.Can Venezuela be saved?Juan Guaidó thinks so.In an exclusive interview with Site Selection magazine, the interim president of Venezuela, recognized by the United States, most of Latin America and much of the EU as the legitimate leader of the nation, explains why he can win, and how Venezuela will rise again. (Maduro is backed by Russia and China, each of which have loaned him huge sums of money, and a handful of despots scattered around the globe.) At press time, Guaidó called for a military uprising in the country, in what he called the fi nal phase of “Operation Freedom” to oust Maduro. is magazine tries to stay out of politics and simply report the facts, but in this case our conscience won’t allow it. We’re behind Guaidó, and very much want him to succeed. Perhaps, more importantly, to be right. Here’s what he told us:Do you really believe that you can become the globally recognized leader of Venezuela? How?Juan Guaidó:Yes. I have exercised my legitimate right as mandated by the people to lead the Venezuelan people, recognized by the majority of the world’s democracies and backed by the majority of Venezuelans. It is not for me to evaluate whether I am “the leader.” I honor my duty as a Venezuelan citizen to help save my country.Once, Venezuela had oil and agricultural wealth, an educated population, a dominant position in world trade routes and easy access to the largest consumer market in the world, which made it the richest country in the region. Can Venezuela go back there? If so, how? And how realistic are Venezuelans about the time and dif culty of the struggle to recover that position?Guaidó: e country retains many of these advantages. Unfortunately, a good part of our population has had to emigrate, but that in turn is an advantage because it helps to keep us connected as a society with the rest of the world.I’ve developed a plan, in consultation with esteemed and educated Venezuelans who live and work inside and outside the country, on how we return to prosperity. Our Country Plan estimates that Venezuela can recover nearly % of the per capita income of in fi ve or six years, setting us on a path of sustained economic development with solid foundations.Unfortunately we cannot mend all the pain we have suff ered. But our people have a great spirit, great pride in being Venezuelan, and a devotion to our society. Venezuela will not be the same country again, it will be a better country.What are the rst steps you will take to begin the long road to recovery?Guaidó:Venezuela needs to have basic civil and social institutions again. Institutions that citizens can trust. at is what we do not have today. e purpose of the transitional government that we intend to constitute seeks precisely that. Once we’ve fi nalized the peaceful transition of power and a return to democracy, confi dence in the future of our country and hope for the future will recover dramatically. ere’s great power in hope, and great strength in Venezuelans. But for this to be sustainable, we need institutions that, among other things, allow Venezuelans to choose freely, fairly and transparently.How quickly can you restore access to food and medical supplies throughout the country?Guaidó:We believe we can restore basic economic freedoms and put us on a sustainable path to Next >