Foreign Direct Investments (FDI) increased by 40% in spite of the global economic downturn, according to a report published by the Foreign Investment Promotion Agency (FIPA).

FDI reached over two billion dinars during the first 11 months of 2008, a 40% increase in comparison with the same period in 2007.

The increase in FDI was fuelled by the service sector, and notably the new technologies such as software engineering and call centres, which currently amount to 170. FDI flows in Tunisia’s manufacturing sector have seen the sector rise from 426.4m dinars in 2007 to 484.7m dinars in 2008.

FIPA’s report indicates gulf investors brought in a large chunk of investments as compared to the previous year when European investors were the major providers of foreign direct investments.

Dubai Holding is investing 25 billion dollars to build a mega project dubbed the Mediterranean Gateway, over a 830 hectare area south of the Tunis lake. FIPA estimates that project alone will generate 0.5% of additional economic growth until 2014, as well as creating employment.