Foreign investors still favor the Netherlands

The NFIA (Netherlands Foreign Investment Agency), part of the Ministry of Economic Affairs, supported 182 foreign investment projects in 2008, of which 101 were initial establishments.

The total expected investment is €667m and will eventually produce 3,300 new direct jobs.

This emerges from the annual NFIA results which were presented by Minister for Foreign Trade Heemskerk on 17 March 2009. Half of the 182 projects originates from Asia.

North America follows with 40%. Investment projects from the US made a large impression on the results in 2008: more than 80% of the total investment amount and half of the total number of new jobs come from the US. Sales and marketing offices and European distribution centers are good for more than half of the projects. The energy and water sector invested most in the Netherlands (€480m), while the information technology sector provided most new jobs (604).

"Foreign investments are of the utmost importance for the Netherlands economy, because they create employment and innovation," according to Heemskerk. "The Netherlands is still favored by foreign investors; however, acquisition in 2009 will undoubtedly become more difficult."

In line with expectations of the World Bank and UNCTAD, the Ministry of Economic Affairs reckons with a decrease in the number of realized investment projects for 2009.

According to Heemskerk it is realistic to expect that the number of new jobs in 2009 will decrease as well. However, a recent development which has already shown itself in the results for 2008, namely an increase of capital-intensive energy projects, will supposedly continue in 2009 as well.

"We expect a decrease in the number of realized investment projects. Therefore it is particularly important to retain the current foreign investors and to stimulate expansion. Therefore, the Ministry of Economic Affairs pays more attention to supporting existing foreign investors in the Netherlands," says Heemskerk.

The announcement of the NFIA annual results was followed by a visit of the Dutch Commissioner for Foreign Investment and Managing Director of the NFIA, Mr. Bas Pulles, to the United Arab Emirates. On this occasion, Mr. Pulles had meetings with investors in Dubai and Abu Dhabi and also chaired the annual assembly of the NFIA Asia and Gulf region directors, which was held in Dubai this year.

"The UAE was the ideal location for the assembly since our office for the Gulf region was launched recently in Dubai to service regional investors and this will allow us to look for new opportunities and get access to new markets," commented Mr. Pulles.

It should be noted that many Arab companies use the Netherlands as their gateway to Europe and other international markets, namely: Saudi Aramco, SABIC, TAQA and Future Pipe Industries,
Aramco Overseas Company, a subsidiary of Saudi Aramco, recently decided to move its headquarters to The Hague in the Netherlands."