Global foreign direct investment rose by six per cent to $1.6 trillion in 2025, up from $1.5 trillion in 2024, although the growth remained concentrated in developed and high-income economies.
The United Nations Conference on Trade and Development disclosed this in its 2026 World Investment Report, titled International Investment in a Turbulent Era.
According to the organisation, developing economies attracted just above $901 billion in FDI during the year, representing a two per cent increase from 2024.
The global increase, UNCTAD noted, came as investment flows remained volatile and were influenced by one-off transactions, corporate restructurings, conduit flows and other financial movements rather than a broad-based recovery in underlying productive investment.
UNCTAD said global FDI increased by six per cent in 2025, while conduit flows through major global financial centres and investment hubs reduced the headline total by about $40 billion, compared with $70 billion in 2024.
Excluding conduit flows through major European financial centres, global FDI increased by four per cent compared with 2024.
FDI flows to developed economies increased by 11% to $723 billion.
Inflows to high-income economies increased from $1 trillion to more than $1.1 trillion.
Inflows to low-income countries increased by 10%, although from a low base.
Global FDI inflows in 2025, excluding conduit flows, were about 10% above their average level for the 2010–2024 period.
“Over the longer term, FDI remained weak relative to other indicators of international economic activity. During 2010–2025, global gross domestic product (GDP) and trade expanded steadily, while FDI growth was subdued and volatile,” UNCTAD noted.
The increase in global FDI was concentrated in economies with stronger capacity to attract large-scale and strategic investment.
UNCTAD said high-income economies drove much of the increase, reflecting higher inflows to developed countries and the continued attractiveness of some high-income developing economies hosting large-scale projects and financial flows.
Hong Kong (China), Singapore and the United Arab Emirates together accounted for more than one-third of FDI inflows to developing economies.
Inflows to upper-middle-income economies remained largely unchanged.
FDI flows to lower-middle-income economies declined by 5%.
The increase in investment was linked partly to capital- and technology-intensive sectors, including high-technology and digital infrastructure.
“These patterns suggest that the 2025 increase was concentrated in economies with stronger capacity to attract large-scale and strategic investment,” UNCTAD noted.
The agency said the concentration also reflected the growing importance of industrial policies in major economies.
Nigeria’s FDI declined sharply in the first quarter of 2026, falling to $135.08 million from $357.80 million in the fourth quarter of 2025.
The decline came as Nigeria attracted total capital inflows of $10.37 billion during the quarter, driven largely by portfolio investments and other short-term financial instruments, according to the latest capital importation data released by the National Bureau of Statistics (NBS).
Nigeria’s FDI declined by $222.72 million quarter-on-quarter.
The Q1 2026 FDI figure was below the $357.80 million recorded in Q4 2025.
Total capital inflows reached $10.37 billion during the quarter.
Portfolio investments and other short-term financial instruments accounted for much of the inflow.
The global FDI trend highlights the increasing concentration of international investment in economies and sectors capable of attracting large-scale, strategic and technology-intensive capital.
