The mining industry had the largest level of foreign direct investment (FDI) in Australia as at the end of 2010, reflecting strong world demand for mineral commodities and the competitiveness of Australia's resources industry. Mining also made up a quarter of FDI in-flows in 2010, along with manufacturing and finance and insurance which each also made up almost a quarter of the FDI inflows in 2010. In addition to mining, manufacturing, finance and insurance, wholesale and retail trade, and transport and communication have the largest stock of FDI in Australia.
The level of FDI in Australia is estimated to have grown by about 60% in the five years to 2010. The largest contributors to the increase were mining ($88 billion or 138% of total FDI growth), manufacturing ($34 billion or 62%) and finance and insurance ($22 billion or 51%).
As Australia's financial capital, the New South Wales finance and insurance industry is a highly attractive destination for FDI. Australia has the 9th largest private wealth market in the world, according to the Capgemini and Merrill Lynch World Wealth Report 2011. Despite having a smaller population, Australia was home to more high net worth individuals than Italy, Brazil and Russia in 2010. Australia also has the fourth largest onshore managed funds market in the world, which has attracted many global funds management companies to Sydney.
Stock of Foreign Direct Investment in Australia by Industry, 20101 Industry2$ million% share of total
Agriculture, forestry and fishing6690.1
Electricity, gas and water9,5872.0
Wholesale and retail trade44,5009.4
Accommodation, cafes and restaurants5,8551.2
Transport and communication43,3319.1
Finance and insurance67,65314.3
Property and business services25,1745.3