Investing in Australia
Australia is a developed country with a population of 22 million. The country is rich in many natural resources and is ranked highly in many global comparisons of factors such as quality of life, healthcare and education. Being located in the South Pacific Ocean, it is ideally located within close proximity of Asia, which is becoming the world’s new economic hub.
Australia offers potential investors a wealth of opportunity for businesses to succeed. Businesspeople can benefit from a stable and efficient regulatory environment, a highly skilled and multi-lingual workforce and a culture of innovation. Situated in the world’s fastest growing region, Australia holds an unparalleled economic record along with world-class industry capabilities and unique cultural and geographic advantages.
Furthermore, Australia offers peace of mind for its citizens, as well as local and foreign investors due to its economic and political stability. There are many profitable opportunities ranging from city investments, property investment, as well as in technology. Just recently, Autodesk, a US-based 3D design, engineering and entertainment software company invested in a corporate research and development (R&D) Centre of Excellence in Melbourne. The company selected Australia was for its business innovation, established position in clean technology, and high level of skills in the sector.
For those looking to try their hand in the markets, there are several different ways in which they can do so. There are a number of high-growth exchange-traded funds (ETFs) based in Australia, to American Depository Receipts (ADRs). ETFS represent the easiest way to invest in a diversified portfolio; however investors who are looking for specific opportunities may want to consider ADRs or even securities listed on the Australian Securities Exchange.
Over the last 5 years, Australia’s inward Foreign Direct Investment stock has increased by an average of 5.8 per cent per annum emphasizing the attractiveness of the South Pacific giant. Compared to other developed economies, Australia attracts a high level of FDI in comparison. Currently, its FDI to GDP ratio is almost 36%, which is well above the average for comparable developed economies. In 2010, the stock of inward FDI in Australia was A$436 billion, with investments coming mainly from the USA, UK, Japan, and the Netherlands. Of note is FDI from Singapore, Japan, Germany, and the Netherlands, which have also shown strong FDI growth over the past 5 years.
Overall, with its robust economy, supported by strong commodity prices and its proximity to key Asian emerging markets, the question of whether one should consider investing in Australia is a no-brainer. It hits the sweet spot between growth and stability, allowing companies based in the country the freedom to grow with minimal exposure to risk. If you are looking for a base for your company to branch into the growing Asia Pacific region, Australia is definitely one of the countries which should be on your list.