According to The World Investment Report 2018 Global foreign direct investment (FDI) flows fell by 23 per cent to $1.43 trillion. This is in stark contrast to the accelerated growth in GDP and trade. The fall was caused in part by a 22 per cent decrease in the value of cross-border mergers and acquisitions (M&As).
But even discounting the
large one-off deals and corporate restructurings that inflated FDI numbers in
2016, the 2017 decline remained significant. The value of announced greenfield
investment – an indicator of future trends – also decreased by 14 per cent.
FDI Inflows to the Islamic
Republic of Iran increased by nearly 50 per cent to $5 billion. Following
the lifting of sanctions in 2015, the country’s rich reserves started to
attract significant foreign participation in the exploration and production of
oil and gas.