Head of the State Investment Agency Stoyan Stalev said the agency expected foreign direct investement (FDI) to grow by 10 per cent in 2008 after a surge by 20 per cent to 5.3 billion euro in 2007.

About 60 per cent of 2008 FDI was expected to be directed to residential, commercial or vocational real estate, intellinews said.

The 2007 foreign investment ranking was led by the UK, owing to real estate investments financed by individuals.

Changes in legislation introduced in September 2007 meant that the state would no longer support FDI in real estate, conventional energy and energy-intensive production. The law would allow for indirect financial support in the form of preferential administrative services and the construction of adjacent infrastructure, intellinews said.

Targer areas for FDI were manufacturing, renewable energy, IT, research, education and healthcare services.