Global FDI rebounds to $1.6 trillion, but investment remains concentrated
Global foreign direct investment returned to growth in 2025, reaching $1.6 trillion after two consecutive years of decline. But the recovery was far from evenly distributed, with developed economies and a handful of strategic industries capturing much of the increase.
The World Investment Report 2026, published by UN Trade and Development (UNCTAD), shows that global FDI rose 6% last year. Investment into developed economies increased 11% to $723 billion, while flows to developing economies grew by only 2%, reaching $901 billion.
The figures point to a changing investment landscape in which the destination and nature of capital are becoming as important as the overall volume. Increasingly, investors are favouring large-scale projects tied to technology, energy and industries considered critical to future economic growth.
Developing markets see mixed results
Developing Asia remained the largest recipient among developing regions, attracting $644 billion in 2025.
Latin America and the Caribbean recorded stronger growth, with investment rising 14% to $188 billion.
Africa received about $70 billion. While that was below the exceptional level reached in 2024, the amount remained roughly one-third above the region’s average for 2010–2024.
The least developed countries recorded a 21% increase in inflows to $43 billion. Yet their share of global FDI remained just 2.7%, with investment concentrated in a relatively small number of largely resource-rich economies.
The distribution of investment was similarly concentrated at the global level.
The world’s 20 largest host economies attracted more than 80% of total FDI in 2025.
Technology is changing where capital is going
The strongest growth was concentrated in projects connected to strategic industries.
According to the report, artificial intelligence infrastructure, semiconductors, critical minerals and energy-transition technologies and services together accounted for 44% of global greenfield project values in 2025. Five years earlier, those sectors represented only 16%.
Data centres were the standout driver, generating $235 billion in announced greenfield investment and international project finance values. Oil and gas followed with $38 billion, while semiconductor projects increased by $13 billion.
Other parts of the investment landscape were considerably weaker. Project values declined by $37 billion in renewable energy, $55 billion in infrastructure and $55 billion in global-value-chain-intensive industries.
The result is a recovery that looks strong in aggregate but is considerably narrower when examined by sector.
More investment does not automatically mean more development
For developing economies, attracting foreign capital is only part of the challenge. Its wider economic value depends on whether projects create productive capacity, jobs, skills and opportunities for technology transfer.
The report found that low-income and lower-middle-income economies attracted only around 10% of strategic-sector investment between 2020 and 2025, compared with more than 20% in other sectors.
That imbalance could become more significant as international investment shifts towards projects requiring substantial capital, advanced technology and specialised skills.
For countries seeking to compete for these investments, the report highlights the importance of dependable infrastructure, workforce development, stronger domestic suppliers and access to regional markets.
Governments increasingly shape investment flows
Governments are also taking a more active role in determining where international capital is directed.
A record 229 investment policy measures were introduced worldwide in 2025. Most remained favourable to investors, but many were designed to attract capital into strategic industries, support domestic economic priorities or respond to concerns over economic security.
That shift is likely to make competition for major investment projects more intense, particularly in sectors linked to technology, energy and industrial development.
2026 outlook remains uncertain
The global investment recovery is entering 2026 against a difficult economic and geopolitical backdrop.
Trade-policy uncertainty, geopolitical tensions, conflicts, high financing costs and increasing economic fragmentation continue to create risks for companies considering cross-border investment.
At the same time, governments are competing more aggressively for projects that could strengthen technological capabilities and establish new sources of long-term growth.
The findings are expected to feed into discussions at the World Investment Forum 2026, which will take place in Doha, Qatar, from 25 to 27 October. Governments, investors and development partners will examine how the increasingly selective investment environment can produce broader economic benefits.
The latest figures suggest that global investment is recovering, but the quality and distribution of that recovery matter. For developing economies, the challenge is no longer simply to attract capital, but to turn it into investment that expands productive capacity and creates opportunities across the wider economy.
