ISLAMABAD: The flows of foreign direct investment (FDI) to developing Asia declined by four per cent to $220 billion in the first half of 2018, as compared with the same period last year, the United Nations Conference on Trade and Development (Unctad) said in a report on Monday.

Driven mostly by a 16 per cent decline in flows to East Asia, China with an increase of 6pc, emerged as the largest global FDI recipient, totaling $70bn. Flows to Hong Kong contracted to $34bn — about half the level it received in 1H17.

‘The Investment Trends Monitor, 2018’ says flows to South-East Asia and South Asia rose by 18pc to $73bn and 13pc to $25bn, respectively. In South Asia, India attracted $22bn of FDI flows, contributing to the sub-region’s 13pc rise in FDI.

FDI flows to West Asia fell by 21pc to $5.1bn, caused by a 5pc fall in Turkey and divestments from Qatar, totaling over $1bn.

Net cross-border mergers and acquisitions (M&As) targeting developing Asia were at about the same level in both years ($41bn), supported by 12 mega deals exceeding $1bn.

Major M&A transactions were concluded in Singapore with over $18bn, led by deals in the services sector, and the United Arab Emirates with nearly $6bn, in the oil and gas industry.

The value of greenfield FDI projects announced in 2018 in Asia was at an all-time high.

Published in Dawn, October 16th, 2018