MENA region top for global FDI ambition: Bloomberg study

MENA companies and organisations have the biggest ambitions for international expansion and investment, according to Bloomberg Media’s latest Global Foreign Direct Investment (FDI) Outlook

90% of senior business decision-makers in MENA surveyed for the Outlook are looking to expand their operations internationally, well above the global average of 76%, with an average investment plan of US$239mn, compared to the global average of US$194mn.

The MENA region also leads in terms of innovation, with 53% of respondents looking to invest in advanced technologies such as AI within the next one to three years, with an eye to long-term growth.

The region stands out in integrating ESG into FDI strategies, with 69% of senior business decision-makers currently doing so, compared to the global average of 56%, and 29% planning to do so in the future. While commitment to ESG varies by region, MENA businesses tend to take a pragmatic approach, with many already integrating sustainability into their investment strategies.

The escalation of conflict in the Middle East, cybersecurity threats, and increased trade barriers are the top three investment concerns for MENA senior business decision-makers, according to the report titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape”, which surveyed 2,600 senior business decision-makers in 31 key markets across six regions.

While FDI priorities remained broadly consistent globally, emerging regions tended to focus more on cost and productivity. Additionally, political instability and security risks are having an increasing impact in shaping FDI decision-making.

While growing concerns were reported about trade policy and its widespread global impacts, the easing of U.S.–China trade barriers is the leading driver of economic optimism in the MENA region, with 76% of respondents expressing strong positivity, the highest global rating for this scenario.