As regards relocation of services, the Eastern European countries integrated since 2004 with the European Union (EU) suffer from the competition of the Med countries (Maghreb and Mashreq). The study published in May 2009 by A. T. Kearney shows that the differential of cost of labour plays now in favour of the Med countries, the Eastern European countries becoming gradually more expensive.

After the Asian countries, which appear in the top 5 (India, China, Malaysia, Thailand, Indonesia),  Egypt comes 6th (vs.13th in 2007), Jordan 9th (14th in 2007), Tunisia 17th (26th in 2007), Morocco 30th (36th in 2007) and Turkey 44th (49th in 2007). Only Israel 49th (38th in 2007) regresses among the countries of the region. Conversely, the Czech Republic now is 32th (vs. 4th in 2004 and 16th in 2007) and Slovakia, Poland and Hungary are also trailing. Download AT Kearney survey

Foreign direct investment (FDI) directed towards Med countries has been on a downward trend since 2007. In 2008, the 13 countries from the Southern and Eastern Mediterranean monitored by ANIMA started to be hit by the global financial and economic crisis [see map: FDI 2003-08 country by country]: they attracted a little less than EUR 40 billion in announced FDI that year (-35%).There remain, however, good reasons for hope. For more and more companies, European or not, the Mediterranean appears as a solution, a possible recourse in terms of market, cost control or partnerships. To find out more about Med investment opportunities in times of crisis, read the latest Invest in Med survey : Foreign direct investment in the Med countries in 2008: Facing the crisis.