Foreign direct investment (HAE) set a 20-year record in 2022, reaching 7.22 billion euros, according to data Bank of Greecebut mostly they concern acquisition or privatization already existing enterprises, as well as the acquisition real estate.

Creation of new productive investments, so-called. investment in new projectsincrease, but still represent a small percentage of total investment.

In particular, according to Report of the Governor of the Bank of Greece for 2022, out of a total of €7.220 billion in FDI in 2022, €2.3 billion (31.8% rate) is related to M&A. But 1.975 billion euros (percentage of 27.3%) fell on the purchase of real estate. The purchase of new shares, representing the creation of new productive investments or participation in an increase in the authorized capital, amounted to 1.979 billion euros (27.4% of the total).

Accordingly, in 2021, out of 5.35 billion euros of total FDI, the purchase of new shares accounted for 1.720 billion euros (32%). In other words, about a third of FDI over the past two years has been directed towards productive new investments.

Of great investment interest is the Golden Visa program, which allows citizens from outside the European Union to obtain a residence permit by purchasing real estate worth more than 250,000 euros. Privatization took center stage in 2022 with major developments such as the acquisition DEDDI S.A.. from Spear WTE Investments Sarl, the sale of the DEPA infrastructure to Italgas SpA, as well as the receipt of the first installment from the sale”Elliniko S.A.» at Hellinikon Global SA (a subsidiary of Lamda Development).

“During the 2021-22 biennium, foreign direct investment inflows increased significantly, reaching the highest level in the last 20 years,” the Governor of the Bank of Greece said in a speech last Friday. Yannis Sturnaras and added: “An important role in strengthening investment in recent years has been played by the acceleration of the program for privatization and disposal of state property, the participation of foreign companies in the authorized capital of domestic companies, as well as the accounting for mergers and acquisitions that occurred in 2022.”

The issues of creating new enterprises of direct production remain at a very low level.

According to the report, “FDI is directed mainly to the increase and acquisition of equity capital and, secondarily, to investment in real estate”, while “investment aimed at creating new directly manufacturing enterprises or new facilities (investment in new projects) in Greece remains at a very low level in terms of value.”

Piraeus Bank Chief Economist Ilias Lekkos explained that investing in new projects comes with a greater degree of business risk, as there may be issues with environmental licensing, archaeological finds or property rights. Thus, such investments are usually made where there are clear advantages, he notes. in tourism. There has been similar interest in data centers as it is estimated that the digitalization of public sector operations will create demand for related services.

However, he notes that the importance of capital inflows for the acquisition of existing enterprises, such as, for example, should not be underestimated. from Shipyards of Elefsinathat will be lively and productive.

As Thasos Anastasatos, chief economist at Eurobank, says, “All investments are good, but the ones that mainly increase the productive potential of the economy are investments in new projects.”

FDI inflows for two years 2021-2022 comes mainly from EU countries, while real estate investments especially come from non-EU countries, the most important of which are the US, Hong Kong, Switzerland, UK, Singapore and Israel.