Understanding investment environments - the world’s most attractive destinations
Where might international investors find the best conditions to do business, with the greatest opportunities for a fair return? Our co-partnered CMS Infrastructure Index provides a tool for identifying the attractiveness of 50 countries round the world.
The 2023 index – the first for two years - is designed to help investors understand the economic environments they may encounter, measured against nine main indicators and 24 sub-indicators. The performance criteria include a nation’s political stability, easy of doing business, tax environment and a host of other factors. In doing so, the index highlights the advantages and opportunities that may lead to successful projects.
It also looks in more detail at market trends such as net zero and energy transition, going digital and the security of critical infrastructure. And there are spotlights on first-ranked Germany, the need for reconstruction in Ukraine, and opportunities and case studies across the Americas and Europe.
Top scorers against the nine main indicators
As our CEO Jon Phillips says, the index finds investor challenges even in high-rated markets such as the US, where public-private partnership legislation remains under-developed at state level, and permitting processes remain too cumbersome. While lower-rated nations with strained balance sheets should remember that non-fiscal measures – especially developing the right regulatory frameworks – can be equally effective at raising investor appeal.
The index also generates social questions, such as the right investment balance between ‘old’ infrastructure classes like roads and water – still vital for the developing world – and ‘newer’ classes such as renewables and digital infrastructure, which currently seem better at attracting private sector money. And how the distinction between ‘old’ and ‘new’ may blur as traditional infrastructure assets become increasingly green and smart.
Removing barriers that deter investment is a must. So is greater dialogue between investors and governments, and between governments themselves, to close the infrastructure gap.
“Whether through incentives or regulatory reforms, one thing is for certain: governments will only meet their net zero and infrastructure targets through working closely with private investors. With public finances stretched around the world following the pandemic, the need to do so is especially pressing.”
Jon Phillips, CEO of GIIA