July 16, 2025
New study explores how macroeconomic and geopolitical shifts are reshaping capital allocation strategies and investor priorities
NEW YORK—July 16, 2025—Today, Bloomberg Media released the seventh wave of its Global Foreign Direct Investment (FDI) Outlook, titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape,” which uncovers how global investors are recalibrating their strategies in response to rising geopolitical tensions, disruptive technologies, and structural shifts.
Geopolitical concerns have surged in prominence, overtaking inflation and supply chain disruptions as top investor worries. Key findings from the study include:
- Thirty-eight percent of respondents now identify US-China relations as a critical risk, a 6-point rise from 2023, with 37% citing US-imposed tariffs.
- Domestic and global political instability have also risen sharply to 34% and 33%, respectively.
- Despite these tensions, appetite for international expansion remains robust, holding steady at 76%, just 1 percentage point below 2023.
- Regional intent to expand is strongest in the Middle East and North Africa (90%), Sub-Saharan Africa (90%), and Latin America (84%), with North America (70%) and Asia Pacific (71%) showing consistent levels of expansion interest.
Despite the uncertainties, the study found plans to invest in large FDI projects are ongoing. The scale of planned investments varies by region, with the Middle East and North Africa leading at an average budget size of $239 million, followed by Asia Pacific at $214 million.
“Amid rising geopolitical tensions and market volatility, global investors are navigating a complex and fast-changing landscape,” said Michelle Lynn, Global Head of Data and Insights at Bloomberg Media. “This study captures those shifts in real time in a way no one else can, giving investors the insight and tools they need, right in their back pocket, exactly when it matters most.”
AI and advanced technologies have emerged as the top global investment opportunity
Nearly half of investors are prioritizing advanced technology investments, an 11 percentage point increase from 2023. This reflects a growing emphasis on innovation and efficiency, as investors look to technologies that can drive resilience, adaptability, and long-term growth. Other technology-driven opportunities remain prominent: accelerated digital transformation ranks second at 32%, followed by digital trade agreements at 31%, and digital economy partnerships at 27%.
Among investors prioritizing technology, six core enablers stand out as crucial to attracting investment:
- AI and machine learning adoption (58%)
- High-performance computing (56%)
- Data centers (53%)
- 5G networks (49%)
- Local technical expertise (48%)
- Access to R&D institutions (37%)
However, infrastructure and technical capabilities alone does not guarantee confidence. Strong policy frameworks around cybersecurity (60%), data privacy (58%), and AI regulation (54%) are seen as essential to support responsible growth.
The future of ESG in global investment strategy is increasingly complex
Over half of businesses globally integrate ESG into their FDI strategy, though overall integration has declined 8 percentage points since 2023. Latin America (70%) and MENA (69%) lead in ESG adoption, while North America is lower at 43%. Rejection of ESG remains low across regions, indicating a delay rather than dismissal of ESG priorities.
Additionally, the US withdrawal from the Paris Agreement complicates the climate leadership landscape, potentially affecting flows of green FDI.
The way investors access and consume information is evolving.
- Traditional news websites remain the leading source for FDI-related content at 53%, though usage has dropped by 4 percentage points since 2023.
- Social media usage has risen 5 percentage points to 46%.
- Podcasts have increased by 4 percentage points.
- Two-thirds of investors (66%) prefer data visualizations to long-form or ultra-short content, with under-3-minute articles dropping 18 percentage points.
Fielded between May 21- June 11, 2025, Bloomberg Media’s Industry Accelerator surveyed 2,600 senior business decision makers across 31 key markets in six global regions: North America, Latin America, Europe, Middle East and North Africa, Sub-Saharan Africa and Asia Pacific. All study participants are involved in their organizationʼs foreign investment strategy and consume international media.
The Global Foreign Direct Investment Outlook is part of the Bloomberg Industry Accelerator series of industry-leading, proprietary studies and analyses on critical topics and groups, including Wealth, Travel, and Financial Advisors. Industry Accelerator is one offering within the Bloomberg Accelerator Suite, the company’s proprietary data platform for driving insights, activation, and targeting for advertising partners. Alongside the Industry Accelerator sits the Bloomberg Brand Accelerator, the proprietary brand diagnostic tool that assesses current brand perceptions and future potential of 700+ brands.
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About Bloomberg Media
Bloomberg Media is the world’s leading multi-platform media company for business and finance, which draws on the editorial resources of more than 3,000 journalists and analysts in more than 100 bureaus around the world. Bloomberg Media is the consumer-facing media organization of Bloomberg L.P.
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