Global FDI Trends in a Challenging Environment: Implications for Sustainable Development

Multinational enterprises (MNEs) are increasingly focusing on markets closer to their home regions, particularly in Europe, the U.S., and emerging hubs like West Asia, North Africa, and Central America. These shifts are driven by economic and geopolitical factors, reshaping FDI patterns and influencing international expansion strategies.

The global investment environment remains highly challenging, particularly for sectors critical to achieving the Sustainable Development Goals (SDGs) in developing countries. While there has been some growth in renewable energy, power, and transportation projects, the overall value of SDG-related investments has been hindered by a slowdown in large infrastructure projects. Investment in key sectors like agrifood systems and water and sanitation has stagnated. The distribution of SDG investments remains uneven, with developing Asia continuing to attract a disproportionate share of investments compared to regions like Africa, which receives a significantly lower share of global SDG investments.

About the speaker

Dr. Amelia U. Santos-Paulino is the Chief of UNCTAD’s Investment Research Section and was formerly at UNU-WIDER and the University of Sussex. She was a Senior Economist at the Central Bank of the Dominican Republic and Senior Advisor in the US-DR-CAFTA negotiations. She also held full-time and visiting posts at prestigious academic institutions worldwide. Her research is published in renowned journals and edited books including the Economic Journal and books edited by Oxford University and Cambridge University Press, among others. She holds a Ph.D. from the University of Kent in the UK.