Latest News

Foreign Investment in Romania has doubled in the first 5 months of 2008

According to data with the National Companies Register Office (ONRC) foreign investment in Romania has doubled in the first five months of 2008 year on year. The value of the share capital subscribed by foreign companies stands at 1.8 billion euro.

The most important players were Ion Tiriac Air, which increased its capital by almost 167 million euros, and Omniasig Vienna Insurance Group, in which the majority shareholder injected 30.6 million euros.

In the finance and banking sector, significant capital subscriptions this May were reported by Domenia Credit, MKB Romexterra Bank and AIG Life Asigurari. Domenia Credit, owned by the US giant General Electric, received 11 million euros in a capital injection.

Data with the National Bank of Romania (BNR) indicate that direct foreign investment stood at 4.11 billion euros, January through May 2008, 59% of which was made up of shareholding contributions and 41% of intra-group loans.

Panama Property boom to continue in 2008

Panama's property market has been booming for the last 5 years and this looks set to continue.

A recent report from Deloitte Touche Tohmatus predicts healthy GDP growth for Panama in 2008 with the economy expected to increase by between 7% and 8%. Analysts believe that the dynamic economy, with its range of important private and public investment projects planned for 2008, will help to offset the negative ripples from the U.S. economy.

The biggest plus for the Panamanian economy is the massive expansion of the Panama Canal, approved in a referendum in 2006 and due for completion in 2014.

In other news, the Latin Business Chronicle has ranked Panama #1 in a survey comparing the Foreign Direct Investment received as a percentage of their GDP.

Carrefour to open 7 hypermarkets each year in Romania

Carrefour Romania; the division of the French Carrefour Group have been operating in Romania since 2001. Last year they took over Artima chain at a cost of 55 million euros, which they intend to rebrand and open as Carrefour Express Supermarkets. To date they have 19 hypermarkets countrywide and have plans to open seven new hypermarkets every year for the next 4 years bringing them to a total of 40 new stores by 2012.

At present, the German groups such as Metro Cash&Carry, Real Hypermarket, Selgros Cash&Carry, Billa and Penny Market, are developing business worth billions of euros. Experts assessed the modern Romanian trade to be worth 7 billion euros, in 2007.

Carrefour chain has maintained its top position among the hypermarkets by exceeding the sale threshold of 1 billion euros in 2007.

Romania housing demand far outstrips supply

A recent report by Market Research Company, PMR states that growth in the Romanian Construction Sector is set to continue for the next 10 years. Despite record construction activity of €15 billion last year - a rise of 33.6% y-o-y there is still a shortfall of 40,000 units per year.

The report revealed that demand for quality housing and the need for renovation of deteriorating property still persists and pressure coming from a young and increasingly middle-class population has created a shortage of over 1 million properties.

Almost 46,000 residential units were constructed in 2007, and PMR predicts that this will rise to 50,000 per year by 2010. The report also found that the Romanian government is committed to investing around €13 billion on infrastructure by 2013.

Panama's Tourist Industry is Booming

Panama currently has the second highest hotel occupancy rates in the world, outstripping London and New York. Panama City is the first city in Latin America to reach this occupancy height within the Deloitte Global Ranking Index (GRI). The biggest tour operator in Panama (Journey Latin America) have reported sales increases of 249% in the past 12 months.

The new Bond film, Quantum of Solace, has also sparked interest. Due for release on October 31 - the movie includes scenes shot in Panama City's Casco Viejo (Old Town), while the ruins of Noriega's notorious "Officers and Troops Club" were transformed into a glamorous venue for a cocktail party. At the other end of the Panama Canal, filming took place in the precarious, old wooden buildings of Colón (representing Haiti) and on a private island off the Caribbean coast.

$5.25 Billion Panama Canal Expansion May not be Enough

Expansion of the Panama Canal is occurring presently (worth $5.25 billion) with an additional expansion deemed likely to accommodate the massive trade between China and the East Coast of the US.

After a lengthy period of consultation and a referendum in 2006, Panama began expanding the canal late last year and the work is due to be completed in 2014.

It is the largest reworking of the U.S. built canal since the 50-mile (80 km) waterway opened in 1914 and includes the construction of a third set of locks that will be able to handle some of the world's largest vessels.

Trade from China to the United States is one of the canal's biggest money earners, as many firms choose to ship goods through the waterway rather than using the more costly overland rail route via Pacific ports in the United States. Record fuel prices means that there will be an increased reliance on fuel efficient modes of transport such as shipping.

Iasi in NE Romania to be the home of a new €200 million Silicon Valley

Romania is to create a 200 million euro Silicon Valley in Iasi; “The Cambridge of Romania”, an already thriving city and the economic, cultural and academic centre of the region of Moldovia in North East Romania. Iasi is home to eight universities (including the oldest in the country), over 50 churches and seven museums, an ideal environment for an international IT hub. The business park will replace a huge local textile factory in the area. The center has plans include 20 new office buildings, an arts center and a student campus, and is scheduled to be finished by 2013.

Bucharest opens first Hard Rock Café and Ferrari Showroom

Hard Rock Café, one of the world's most recognizable brands, known for dining, rock music, memorabilia and entertainment, has opened in Bucharest. The new restaurant is located in the in Kiseleff Avenue near the the landmark Triumph Arch, where the main avenues of Bucharest's trendy entertainment district begin, offering a convenient destination for both locals and travelers to visit.

The first Ferrari showroom in Romania is due to open in May, located in the affluent Northern part of Bucharest, near the Henri Coanda International Airport and Someplace Else’s Bujor and Sydney developments.

Cambodia looks set to allow non-nationals to buy property on a freehold basis

Cambodia’s government is believed to be considering amending its current property ownership laws for foreign citizens, in an effort to position its property market as an attractive option next to its South East Asian neighbours.

Currently foreigners can buy a property in Cambodia on a 99-year leasehold basis or alternatively form a company with a Cambodian national. The new amendment would allow non-nationals to buy property on a freehold basis – previously restricted to Cambodian citizens.

With a booming economy, growing at an average of 9% a year for the past decade, Cambodia’s property market looks set to become a good investment prospect for the canny investor.

The Montenegrin government is due to change foreign ownership laws

The Montenegrin government has backed a draft law which will make it easier for foreign investors to purchase land in the country. Although there are currently no restrictions on foreigners owning property in the country, buying land for personal use or to develop property in Montenegro requires a buyer to set up a Montenegrin company.

The proposed law changes from the Montenegrin government come off the back of a year which saw Montenegro strengthen its position as one of Europe’s top property investment destinations. Real estate prices on Montenegro’s coast are also rising by up to 50% per annum in some areas. New modern buildings in the popular towns of Herceg, Novi, Ulcinj, Bar and Tivat are now between €2,500 – €5,000 per sqm while in Budva, Sveti Stefan and Petrovac prices are ever higher.

Extension of CAFTA set to boost Panama’s property market

US president George Bush has called on congress to approve free trade agreements with Panama, Columbia and South Korea and to reauthorise and reform the Trade Adjustment Assistance program with these countries, a move which could help boost interest in Panama’s property market as an investment destination.

The possibility of the agreement has sent out a positive message about Panama’s long-term economic future and some in the industry think the extension of the free trade agreement will further its appeal to international investors. There are no restrictions on foreigners purchasing property in Panama and the purchase process is very straightforward. Panama’s living costs are just 25% of those in the UK and Ireland.

[ Back ]