Bloomberg Media Study Finds MENA Region Leads Global FDI Ambitions Despite Geopolitical Risks and Economic Uncertainty

(MENAFN- Weber Shandwick) Dubai, 17 July 2025 - The escalation of conflict in the Middle East, cybersecurity threats, and increased trade barriers are the top three concerns for MENA senior business decision-makers when allocating foreign direct investment (FDI), according to seventh wave of Bloomberg Media’s Global Foreign Direct Investment (FDI) Outlook, titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape”.
However, despite these concerns, the MENA region has the largest appetite for international expansion and biggest investment plans, with 90% of respondents expressing a desire to expand their operations internationally, well above the global average of 76%, and reported an average investment plan of $239 million, compared to the global average of $194 million.
The study draws on the views of 2,600 senior business decision-makers in 31 key markets across six regions who are personally involved in their organizations’ foreign investment strategies and consume international news. They were surveyed between 21 May and 11 June 2025 and included 227 individuals from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Egypt, and Morocco.
FDIs are increasingly focusing on stability and cost incentives, placing less emphasis on factors such as location and lifestyle. Compared to 2023, investor interest in FDI projects grew by 10 percentage points in manufacturing, 4 points in supply chains, and 3 points in new market expansion.
While FDI priorities remained broadly consistent, emerging regions tended to focus more on cost and productivity. Additionally, political instability and security risks are becoming increasingly influential in shaping FDI decision-making.
The report found that positive and negative outlooks are nearly evenly balanced for the first time in five years, signaling growing concerns 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.
The conflict in the Middle East and U.S. President Donald Trump imposing tariffs on several major trading partners were among the key events that triggered global volatility and uncertainty so far in 2025.
These events have heightened geopolitical tensions, with Middle East conflicts ranking as the top concern for regional business leaders, followed by cybersecurity threats and increased trade barriers.
Looking ahead, advanced technologies such as artificial intelligence are presenting the biggest opportunities for FDI as they become central to how business leaders plan and prepare for the future. The MENA region stands out as a leader in investing in this sector, with more than half (53%) of respondents indicating they plan to invest in this sector within the next one to three years. This signals a stronger focus on innovation and resilience, as investors look to tech that supports long-term growth.
In the field of ESG investing, the U.S. withdrawal from the Paris Agreement created a potential gap in global climate leadership. This occurred as ESG investing became more integrated into corporate values and standard practice, with fewer business leaders viewing it as a future business model or a unique driver of business growth.
However, the MENA region remains one of the leading regions 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 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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