Canada's Natural Resources Attracted $500 Billion Foreign Investments In 2007

May 7, 2008 7:50 a.m. EST

Ottawa, Canada (AHN) - The discovery of oil and other resources in Canada attracted foreign direct investments to the tune of $500 billion in 2007.

While foreign money came in, lesser Canadian dollars in the form of Canadian direct investments overseas dipped to $514.5 billion for the same period.

According to Statistics Canada, the foreign direct investments were mostly takeover of Canadian companies by U.K. and other European investors. Despite the entry of European firms, U.S. companies still controlled 58 percent of foreign holdings in Canada.

With the two figures, Statistics Canada computed net direct investment at $13.7 billion, a decline from $92.2 billion in 2006. The statistical agency explained to the Globe and Mail that the continuous dip in Canadian direct investment abroad was due to the appreciation of the country's currency.

Emerging as the new favorite investment sites of Canadian dollars were in tax-haven Caribbeans, principally in Barbados, Bahamas, Bermuda and the Cayman Islands, which jointly accounted for 16.5 percent of Canadian foreign direct investments overseas.