THE fDi REPORT 2016Global greenfield investment trends,也i,i,THE fDi REPORT 2016,EXECUTIVE SUMMARY1,Executive summary,Against a background of global geopolitical and economic uncertainty, greenfield FDIis continuing its tentative recovery phase. According to the findings of this report, capital investment increased by nearly 9% in 2015, while the number of jobs created via FDI grew by 1% to 1.89 million. However, the number of projects declined 7%.The fDi Report 2016 is our annual report recapping the global greenfield investment trends of the previous year, based on,figures from our data service fDi Markets. We focus on greenfield investment as it is the sharp edge of foreign investment: it has the most tangible impact on economic development and is the most solid indicator of a countrys competitiveness. Greenfieldinvestment is less volatile than mergers and acquisitions and other types of foreign investment: hence, M&A flows, which reacheda post-crisis peak in 2015, caused headline FDI flows to swell by more than a third in contrast with the more tepid growth of strictly greenfield flows. Dr Henry Loewendahl explains the differencesin how FDI figures are calculated and how they can best be interpreted on page 3.There is much to wade through when assessing 2015s FDI data, but a few highlights stand out.,The big FDI story of the past year is India. After a long period of trailing behind China, the south Asian country is now racing past its formidable rival. India was the highest ranked country by capital investment in 2015, with $63bn-worth of FDI projects announced. Meanwhile, China saw a 23% decline in capital investment and a 16% drop in FDI projects. We analyse Indias rise on page 6.Asia-Pacific remained the leading destination region for FDI in 2015, attracting 45% of all capital investment globally in 2015(see page 4). Although the number of FDI projects into the region decreased by 7%, the total capital investment increased by 29%.While coal, oil and natural gas has reclaimed its top spot as the largest generator of capital investment globally, with $113.5bn of announced FDI recorded in 2015, the once-hot renewable energy sector is on the rise again, with project numbers increasing by 50% and capital investment reaching $76bn. This accounts for more than 10% of all capital investment globally last year. We detailwhat is driving expansion in this sector in a special section beginning on page 18.For more on all the other top FDI trends of 2015, and a breakdown of regional and country-level performanceas well as sector analysis, read on. You can also download a copy of this report, The fDi Report 2016, at www.fDiIntelligence.com/fDiReport.,Courtney Fingar is editor-in-chief of fDi Magazine and head of content for fDi Intelligence, the Financial Times specialist unit dedicated to foreign direct investment,The big FDI story of the past year is India. After a long period of trailing behind China, the southAsian country is now racing past its formidable rival,THE fDi REPORT 20162,Global overviewIn 2015, greenfield FDI continued to show signs of recovery, with capital investment increasing by nearly 9% to $713bn, alongside an increase in job creation by 1% to 1.89 million. However, thenumber of FDI projects declined 7% to 11,930. India was the highest ranked country by capital investment in 2015, with $63bn-worthof FDI projects announced. Major companies such as Foxconn and SunEdison have agreed to invest in projects valued at $5bn and $4bn, respectively, in India. The US was the highest ranked destination by FDI projects, recording 1517 FDI projects in 2015.,Asia-Pacific remained the leading destination for FDI in 2015,with 3883 announced FDI projects bringing in an estimated capital investment of $320.5bn. The region attracted 45% of all capital investment globally in 2015. Western Europe was the leading source region for FDI in 2015. Despite a decline of 9% in project numbersto 5047, the region announced capital investments of $234.4bn. In total, 42% of FDI projects were sourced from western Europe.,Key trends in 2015 include:,The number of FDI projects into Africa in 2015 increased by 6%,Inward investment into the region consisting of Russia, the Commonwealth of Independent States, and central, eastern and south-eastern Europe was the only region to witness an increase in FDI across project numbers (6%), capital investment (12%) and job creation (13%),India replaced China as the top destination for FDI by capital investment following a year of high-value project announcements, specifically across the coal, oil and natural gas and renewable energy sectors,GLOBAL OVERVIEW,Source: fDi Markets* Includes estimates* by capital investment,Global overview 2015 FDI snapshot,Total capital investment ($bn)$713bn*,Top source countryUS*,Total jobs created1,891,576,Top destination countryIndia*,Top sectorCoal, oil and natural gas*,