Romeo Abdo: Foreign Investments in Belarus
Foreign direct investment on a net basis is the inflow of foreign direct investment without taking into account the debt to the direct investor for goods, works, services, minus the withdrawal of foreign direct investment. This balance of investments is adjusted for flows by organizations, shares or stakes in authorized funds of which were state-owned and sold to non-residents.
As can be seen from the definition, debt instruments are not taken into account when calculating direct investment on a net basis. These debt instruments usually include loans, borrowings, receivables, creditors, financial leasing, etc. This is logical, since debts must be repaid, and investments can remain in the country indefinitely.
Foreign investment in the country
Thus, the data on the inflow of foreign investments show that money is still coming to Belarus. At the same time, a significant share of incoming funds from abroad is foreign direct investment. These are mainly loans and borrowings issued to controlled enterprises, as well as reinvestment of profits earned in the territory of the Republic of Belarus.
The largest foreign investors in our country are still Russia and offshore Cyprus, which account for over 58% of all funds received. Investors from Lithuania, Poland, Ukraine and Great Britain also invest in the Belarusian economy, but their share remains small. At the same time, in the second quarter of 2021, the withdrawal of investments exceeded their inflow, which may be the first signal for the outflow of capital from Belarus.
Current market situation
In the first half of the year, foreign investors invested over $ 383 million in the real sector of the Vitebsk region’s economy, more than 94% of which was directed to the processing industry. BelTA was informed about this by the Economy Committee of the Regional Executive Committee.
The most popular among foreign investors were the woodworking industry, food processing, pharmaceutical production and petrochemicals. About $ 362 million was invested in the development of manufacturing enterprises, which amounted to more than 99% of the proceeds for the implementation of industrial investment programs.
The amount of direct investment is equal to $ 66.7 million, or 17.4% of the incoming foreign investment. More than a third of them were provided by the residents of the free economic zone (FEZ) “Vitebsk”.
Some statistics recently
More than 86% of foreign investments in the economy of the Vitebsk region came from Russia. Business entities of the neighboring country are attracted both by the conditions of placement on the territory of the northern region of Belarus and by convenient logistics. Also in the top three are Ukrainian investors (3.9% of total investments) and businessmen from Cyprus (2.7%). Most Cypriots are residents of the Vitebsk FEZ. They make financial investments in construction, woodworking, production of coiled tubing equipment for the repair of gas and oil wells, mounted on chassis, cars of various brands and fiber optic cables.
Business representatives of the Vitebsk region also invest in enterprises abroad. Of the total volume (over $ 84 million), over 86% of investments in the first half of the year were directed to Russia. Domestic investors are most interested in the manufacturing industry.
At the same time, the organization ensures that the focus on serving both individuals and businesses has proven its effectiveness and will certainly continue. Therefore, for clients with a change of ownership, nothing will change. At the same time, the bank is confident that attracting a new investor will allow it to enter new markets. This confidence is due to the fact that the partners of businessman Romeo Abdo are co-owners of two large banks in Nepal.
Facts about Romeo Abdo
The native of Lebanon was born in 1975. In 1998 he became the general representative of the Ruby Rose group in the republic. In 2007 he created the BNK holding. Romeo Abdo’s partners in BNK Holding are Nepalese Upendra Mahato and Niraj Shresthoy.