TORONTO--(BUSINESS WIRE)--Ontario, Canada attracted more foreign capital investment in 2011 than any North American state or province except Alberta, according to a report recently released by the Financial Times' fDi Intelligence think-tank.
The report, titled "The fDi report 2012 - Global greenfield investment trends", shows that last year, Ontario attracted 135 foreign direct investment projects worth an estimated US$7.1 billion, or almost 7 per cent of total FDI value in North America. It was an impressive show of strength for Canada's economic powerhouse and the seventh largest economy on the continent.
Renewable energy projects were a big win for Ontario, which landed 11 contracts in the sector – the most among all US states and Canadian provinces. The report states that, "Ontario was the world's leading region for renewable energy projects in 2011." Energy was a major area of capital investment in North America, with renewable energy, coal, oil and natural gas accounting for 34 per cent of FDI dollars in 2011. The renewable sector energy alone saw US$12 billion in capital investment last year.
Global companies are drawn to Ontario because of its stable and growing economy, skilled and reliable workforce, environment of innovation, proximity to market, competitive business costs and quality of life. The latest numbers reinforce the province's growing status as a top destination for foreign direct investment. Over the last five years, the number of FDI projects in Ontario has climbed steadily, from 69 in 2006 to almost double that number in 2011.
Ontario is one of four jurisdictions that, collectively, attracted 33 per cent of FDI projects that came to North America in 2011. California, New York and Texas are the other jurisdictions in this group.
Although California and New York – which are larger economic jurisdictions than Ontario – netted more projects at 229 and 150, respectively, Ontario still came out ahead with more projects per 1,000,000 of the population.
In the information and communication technologies sector, Ontario ranked third with 29 FDI projects, behind California and New York. It ranked fourth in life sciences, with seven projects.
The United States remained Ontario's largest source of FDI projects, providing 52 per cent of all projects that came to the province last year. Germany, China, France, the U.K. and Japan accounted for 25 per cent of FDI projects in Ontario in 2011.
QUICK FACTS
- Ontario was the world's leading region for renewable energy projects in 2011.
- In terms of capital investment, coal, oil and natural gas and renewable energy were the top two sectors for foreign direct investment in 2011, accounting for 34% of the capital investment that came to North America.
- Ontario ranked ahead of all North American states and provinces for total capital investment except Alberta.
- Ontario ranked third for the total foreign direct investment projects, with 135 total projects (even though it is the seventh largest economy among states/provinces in the United States and Canada).
- Four states/provinces attracted 33% of the foreign direct investment projects that came to North America in 2011 - California, New York, Ontario and Texas.
LEARN MORE
- About Ontario's Clean Technology sector
- Read more about the Ontario Emerging Technologies Fund