With its rich natural resources, strategic geographic location and diversity of industries, Western Australia offers significant scope for investment – both for those looking to invest and seeking investment.
The State’s industry landscape is diverse, with a thriving resources sector making it a major world exporter in iron ore, natural gas, petroleum and gold. WA is also a large agricultural exporter of wheat, canola, barley, live cattle and sheep, and beef and sheep meat. Services in education, health, hospitality and retail also make up a key portion of the State’s main industries.
As such, businesses looking to invest in WA can benefit from the State’s diverse range of opportunities – particularly in mining and mining equipment, technology and services (METS); primary industries; energy; defence; space; international education; health, medical and life sciences; and tourism, events and creative industries.
WA’s position in the Asia Pacific region makes it ideally placed for foreign direct investment to establish a local presence. The State is the gateway to Asia, where there is increasing export demand from a growing middle class.
Proximity and established economic links with export markets in Asia make WA an attractive place to do business. The fact that the State shares a similar time zone with a significant portion of the world’s population, including China, Japan, South Korea, and Indonesia, further enhances its appeal as a business destination. This suggests that WA is well-positioned to tap into these markets and benefit from the opportunities they present.
Advantages such as a supportive government, strong economy, mature financial and support service sectors, and a skilled workforce make WA an attractive destination for foreign investment and business migration, particularly in the resources sector. The ability to utilise free trade agreements for foreign companies to set up a regional office adds further appeal to investing in WA, making the State an even more lucrative option to do business.
Investment options can include direct investment in businesses and government projects, venture capital, private equity and public offerings. The WA and Federal Governments have several initiatives to encourage investment in the State, which can provide businesses with the capital they need to get started and develop their operations.
WA’s economic strength
Businesses looking to provide investment for WA businesses and projects can also benefit from the State’s strong economy and growth potential. The WA economy is one of the strongest in the country, having grown by 13% since the start of 2020. This is the largest growth of any state in the country, fuelled by a strong resources sector, robust consumer demand and an explosion in the pipeline for housing. As a result, WA’s unemployment rate continues to hover near record low levels – reading 3.6% in January 2023 – as the number of people in full-time employment has continued to grow.
Taking advantage of global trends
As the world continues to move towards a more sustainable and digitalised future, WA is well-positioned to take advantage of global trends in technology, energy and resources. Situated in one of the most mineral-rich regions of the world with highly developed digital infrastructure, WA provides the ideal environment to capitalise on the evolving global landscape.
In terms of technology, WA still has much to gain from the growing digital economy which poses great opportunity for investors and businesses. With a booming start-up sector, WA’s tech industry has grown exponentially, with many companies developing innovative solutions to a range of industries, including the mighty energy and resources sector. WA also has access to some of the best digital infrastructure in the world, with a strong presence of fibre-optic cables, 5G networks and other advanced technology – all of which offer appeal for businesses looking to access technology and develop their digital capabilities.
The State’s abundance of minerals, including iron ore, gold, nickel and lithium provide businesses and investors the opportunity to leverage off the global mining industry. WA has a global reputation as a mining and resources hub and as a leader in innovation and sustainability.
The world’s growing focus on renewable energy lends well to WA’s rich sources of solar, wind and wave energy. With the WA Government and domestic and international markets signalling a move towards renewable energy, businesses and investors in WA can on a sector that is only at the start of its promising journey.
Investors have a plethora of opportunities to choose from when it comes to WA. Whether it be established industries with a proven track record of success, or an emerging sector on the cusp of exponential growth, WA has an abundance of options that present promising long-term capital growth.