TUNIS (Reuters) – Foreign direct investment (FDI) in Tunisia rose 18 percent in the first quarter of 2017 compared with a year earlier, government figures showed on Monday.

The figure for that period, from January to March, was 450 million Tunisian dinars ($177.68 million), the Foreign Investment Promotion Agency said.

The manufacturing industry drew most of the investment flow with 144 million dinar, followed by the services sector with 56 million dinar, it said.

Tunisia, which this month set up a new investment law, seeks to attract foreign investors after years of stagnation due to strikes and fragile security situation since a 2011 revolution.

The new law gives foreign investors more flexibility to transfer funds, including profits, out of the country, and removes tax on profits of major projects for 10 years.

It also establishes a fund for investment which will help finance infrastructure projects and funding to spur investors to launch big projects in marginalized areas of the country.

($1 = 2.5327 Tunisian dinars)

(Reporting By Tarek Amara)