Top FDI Locations Continue To Tighten Their Screening Regulations
FDI screening measures are still on the rise in 2021, with several countries extending or making permanent their Covid-19-related policies. Investment Monitor’s FDI regulations database summarises the key measures introduced by the world’s top FDI destinations.
Against the backdrop of growing trade protectionism, foreign direct investment (FDI) regulation has become increasingly prevalent. Restrictions have been on the rise since the 2008 global financial crisis, which triggered a surge in economic nationalism and populist politics.
This trend further intensified in the wake of Covid-19. Many governments implemented measures to protect critical assets from predatory behaviour. According to the UN Conference on Trade and Development’s World Investment Report 2021, 2020 was a record year for FDI restrictions. The report noted that 50 new measures were approved globally in 2020, more than double the 21 measures recorded in 2019.
With many countries becoming more interventionist, it is essential that investors are up to date on ever-changing FDI rules. Investment Monitor’s FDI regulations database offers a general overview of protectionist policies for 50 of the world’s top FDI destinations as well as the restrictions that have been implemented in relation to Covid-19.
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