Core Insights - A study by the Kenya Institute for Public Policy Research and Analysis (KIPRRA) indicates that despite billions in foreign direct investment (FDI) flowing into Kenya, these investments are not directed towards critical industrial sectors such as manufacturing, mining, and construction, but rather into service sectors like retail, finance, information and communication technology, and hospitality [1] - The report highlights that even when investments do enter industrial sectors, they often take the form of greenfield projects, which require a long time to yield benefits and frequently do not align with local industrial needs [1] - The study found that in the four key sectors analyzed, both foreign direct investment and domestic direct investment (DDI) have statistically insignificant impacts on industrial output, revealing deep structural issues in Kenya's ability to attract and manage capital investments [1]

Core Viewpoint - The article highlights a significant decline in India's net foreign direct investment (FDI), which fell to a historic low of $35 million in May 2025, marking a 99% month-over-month and 98% year-over-year drop, raising concerns about the investment climate in India [4][10][12]. Group 1: FDI Data Analysis - In the fiscal year 2024-2025, India's net FDI is projected to be $353 million, a drastic decrease of 96.5% compared to nearly $10 billion in the previous fiscal year [10][11][12]. - The total FDI inflow for the fiscal year 2025 is expected to reach $81 billion, reflecting a year-over-year growth of 13.7% [12]. - The sharp decline in net FDI is attributed to a significant outflow of foreign capital, with local companies investing $29 billion abroad [16][19]. Group 2: Regulatory Environment - India has been characterized as a "graveyard for foreign investment," with stringent regulations and unpredictable policies leading to substantial penalties for foreign companies [19][20]. - For instance, Samsung was required to pay $601 million in taxes and fines, equivalent to its annual net profit in India, illustrating the harsh financial environment for foreign firms [21][22]. - The Indian government has implemented various measures, such as a digital services tax and restrictions on foreign ownership, which have increased the cost of investment for foreign companies [25][26]. Group 3: Investor Sentiment - Despite the negative reputation, foreign companies continue to invest in India due to its large population and market potential, driven by a sense of optimism and the belief that they can navigate the regulatory landscape [29][30]. - However, the recent military conflict with Pakistan has raised alarms among international investors, highlighting concerns over India's military capabilities and the safety of their investments [42][49]. - The Indian central bank's attempts to downplay the situation by emphasizing market liquidity and attractiveness are met with skepticism, as the reality of a 99% drop in net FDI cannot be ignored [50][52].

Group 1 - The UAE has achieved a record high in foreign direct investment (FDI) inflow, reaching $45.6 billion in 2024, a significant increase of 48% compared to the previous year [2] - The UAE has become the 10th largest FDI destination globally, attracting 37% of the region's foreign investment, showcasing its strength as a regional investment hub [2] - The UAE's success is attributed to strategic leadership, investor-friendly policies, and a vision for economic diversification, aiming to attract $354 billion in FDI by 2030 [2] Group 2 - The Dubai IFZA Free Zone serves as an official bridge for international investors, particularly Chinese companies, to efficiently enter the UAE market [3] - IFZA offers a partner-centric service model and comprehensive business support within a robust legal framework, facilitating access to opportunities in the Middle East and North Africa [3] - IFZA provides unique advantages such as transparent and low registration fees, simplified registration processes, and a wide range of business activities under one license [5]

Group 1 - South Korea has experienced the largest decline in foreign direct investment (FDI) to the U.S. among Asian countries, with a staggering 90% drop in 2024 compared to the previous year [1] - In 2024, total FDI to the U.S. from Asia is projected to be $23.2 billion, a 40% decrease year-on-year, while European investments remain dominant at $96.7 billion [1] - Japan, in contrast, has increased its investment in the U.S. to $18 billion, while China's investment has decreased by 9% to $589 million [1] Group 2 - The decline in South Korean investment is attributed to several factors, including market saturation, reduced demand in key industries like electric vehicle batteries, and increased uncertainty in U.S. policies [1][2] - South Korea was previously the largest investor in the U.S., with commitments of $21.5 billion in 2023, but recent shifts in U.S. policy under the Trump administration have led to a reassessment of investment strategies [2] - Despite the overall decline, some Asian companies, such as Hyundai Motor Group, are still pursuing expansion plans, with Hyundai announcing an additional $21 billion investment in the U.S. [3]

Core Viewpoint - The CEO of Vietnam Technology Commercial Bank stated that the 20% tariffs imposed by the United States on Vietnam will not hinder foreign direct investment (FDI) inflow [1] Group 1 - The statement reflects confidence in Vietnam's ability to attract FDI despite external economic pressures [1] - The bank's leadership suggests that the impact of tariffs may be mitigated by other favorable investment conditions in Vietnam [1]

Group 1 - High energy prices and ongoing global uncertainty have weakened the flow of foreign direct investment (FDI) globally [1][3] - In the fiscal year ending March 2023, the UK saw 1,375 FDI projects, a 12% decrease from the previous year, marking the lowest level in 18 years [1] - The IT and financial services sectors attracted the most FDI projects, but new project numbers declined by 2.3% and 5% respectively [1] Group 2 - The high cost of energy is a significant factor impacting investment interest, with UK industrial consumers facing an average electricity price of 25.8 pence per kWh, nearly 50% higher than France and Germany, and four times that of the US and Canada [3] - The UK manufacturing sector has seen a one-third decline in output for energy-intensive industries since early 2021, reaching the lowest level since 1990 [3] - A ten-year industrial development strategy by the UK government aims to reduce energy costs and optimize energy infrastructure to support key industries [3] Group 3 - Other European countries are also struggling to attract FDI, with a reported 58% drop in FDI inflows [4][5] - The UNCTAD's 2025 World Investment Report indicates a slight global FDI growth of 4% in 2024, but a real decline of 11% when excluding certain European financial transactions [5] - The EY's 2025 European Attractiveness Survey shows a 5% decrease in overall FDI projects in Europe, the lowest in nine years, with a 16% drop in jobs created by FDI [5]

Group 1 - The UN Conference on Trade and Development reports a global FDI decline of 11% in 2024, totaling $1.493 trillion, influenced by geopolitical tensions and trade fragmentation [1] - Developed economies experienced a 22% drop in FDI, with Europe facing a significant decline of 58%, while North America saw a 23% increase driven by the US [1] - Africa's FDI surged by 75% to a record $97 billion, accounting for 6% of global FDI, with Egypt leading in FDI stock at $205.2 billion [1] Group 2 - International financing for key sectors is declining, with infrastructure projects down 26%, renewable energy by 31%, transportation by 32%, and water and sanitation facilities by 30% in 2024 [2] - The UNCTAD Secretary-General highlights that many economies are overlooked not due to lack of potential but because capital is directed to easier access points rather than areas of need [2] - The digital economy is one of the few growing sectors, with a 14% increase in global FDI in 2024, although this growth is concentrated in 10 countries that account for 80% of new projects [2]

Core Viewpoint - The deadline for US-EU trade negotiations is likely to be postponed, with significant tariffs looming if no agreement is reached, highlighting the complexities and uncertainties in global trade dynamics [1][3]. Group 1: Trade Negotiations and Tariffs - The EU faces a deadline on July 9 for trade negotiations with the US, with potential tariffs of up to 50% on EU exports if no agreement is reached [1]. - Valentino Valentini emphasizes that dialogue is essential, and the current strategy of postponing deadlines creates unnecessary anxiety [1]. - The use of tariffs as a tool to fill fiscal deficits rather than to balance trade is concerning, as it may lead to broader economic repercussions [3]. Group 2: Impact on Investment and Supply Chains - The sudden imposition of tariffs has dampened investment confidence and accelerated supply chain restructuring, shifting from a "just-in-time" to a "just-in-case" model [3]. - The uncertainty surrounding tariff policies is causing companies to pause new investments, particularly in emerging markets, which are already facing economic challenges [6][7]. - The World Bank reports that foreign direct investment (FDI) inflows to developing countries have dropped to their lowest level since 2005, with developed economies also experiencing significant slowdowns [6]. Group 3: Geopolitical Risks and Economic Outlook - Geopolitical uncertainties and trade barriers are contributing to a decline in global investment, with private equity exits becoming more challenging [6]. - Emerging markets are particularly affected, as high inflation and debt accumulation hinder their economic recovery, while FDI continues to flow into safer, mature markets [7]. - The future of FDI is contingent on the resolution of geopolitical tensions, which currently disrupt traditional investment patterns [7].

Core Viewpoint - The UNCTAD report indicates a slight increase in global foreign direct investment (FDI) by 4% in 2024, reaching $1.5 trillion, but a significant actual decline of 11% when excluding large financial transactions from certain European economies, marking two consecutive years of double-digit declines [1] Group 1: Global Investment Trends - The report highlights that the global economy is facing complex challenges, including rising debt, sluggish GDP growth, geopolitical tensions, and structural changes in trade and investment flows [1] - Early data for Q1 2025 shows that transaction and project activities have hit historical lows, indicating a pessimistic outlook for international investment [1] Group 2: Regional FDI Insights - Developed economies saw a 22% drop in FDI inflows in 2024, with European FDI plummeting by 58% when excluding financial transaction fluctuations, while North America experienced a 23% increase [5] - Developing economies in Asia remain the primary destination for global FDI, accounting for 40% of total FDI, although the region's FDI inflows decreased by 3% to $605 billion in 2024 [5] - ASEAN countries saw a significant FDI increase of 10%, reaching a record high of $225 billion, while Africa's FDI surged by 75% to $97 billion, driven by a major project in Egypt [5] Group 3: Sectoral Investment Dynamics - Greenfield investment projects in the industrial sector rose by 3% but saw a 5% decline in total value, maintaining a high level of $1.3 trillion [3] - International project financing (IPF) continued to decline, dropping by 26%, influenced by uncertainties in exchange rates and interest rates [3] - Cross-border M&A transactions increased by 14% to $443 billion, yet remained below the average levels of the past decade, indicating a shift towards domestic and nearshore investments due to rising policy risks and regulatory scrutiny [3] Group 4: Digital Economy and Investment - The digital economy is identified as a growth and transformation engine, with investments in this sector growing at an annual rate of 10% to 12%, outpacing global GDP growth [10] - Developing countries attracted $531 billion in greenfield projects in the digital economy from 2020 to 2024, with a concentration of investments in ten economies that accounted for nearly 80% of total investments [8] - Data centers emerged as the primary investment target in developing countries, followed by digital services and ICT infrastructure [8] Group 5: Policy and Regulatory Environment - The global investment policy landscape remains heavily influenced by geopolitical tensions and industrial policy objectives, with 174 new investment policy measures introduced in 2024, 78% of which favor investors [10] - As of the end of 2024, the total number of investor-state dispute settlement (ISDS) cases exceeded 1,400, with a significant portion occurring in the extractive and energy sectors [10]

Group 1 - In 2024, global Foreign Direct Investment (FDI) is projected to reach $1.5 trillion, reflecting an 11% decline when adjusted for significant financial transaction fluctuations in major European economies [1] - The report indicates that the international investment outlook for 2025 is pessimistic, with trade tensions leading to downward adjustments in most FDI outlook indicators [1][2] - Developed economies saw a 22% drop in FDI inflows in 2024, while North America experienced a 23% increase [4] Group 2 - Asia remains the primary destination for global foreign investment, accounting for 40% of total FDI, although it saw a 3% decline to $605 billion in 2024 [4] - ASEAN countries experienced a significant FDI increase of 10%, reaching a record high of $225 billion [4] - Africa's FDI grew by 75% to $97 billion, driven by a large project in Egypt [4] Group 3 - Greenfield investment projects in the industrial sector increased by 3%, but their total value decreased by 5%, maintaining a high level of $1.3 trillion [2] - International project financing (IPF) declined by 26%, influenced by uncertainties in exchange rates and interest rates [2] - The number of infrastructure projects decreased by 9%, while digital infrastructure projects increased by 4% [4] Group 4 - Renewable energy and critical minerals sectors saw a decline in greenfield project announcements by 12% and nearly 50%, respectively [5] - The semiconductor sector experienced a resurgence with four of the ten largest announced projects, totaling $70 billion in capital expenditure [5] - Investment in health and education sectors grew by approximately 25%, although total investment remained low at under $15 billion [5] Group 5 - Digital economy investments are identified as a key growth and transformation engine, growing at an annual rate of 10% to 12%, outpacing global GDP growth [8] - Over the past decade, major tech companies have increased their share of sales and assets among the largest multinational corporations [6] - From 2020 to 2024, developing countries attracted $531 billion in greenfield projects, with a concentration in ten economies that accounted for nearly 80% of total investments [6]