FDI CEO Outlook 2025: Ismail Ersahin, WAIPA
Ismail Ersahin is CEO and executive director, World Association of Investment Promotion Agencies (WAIPA).
How would you describe 2024 from WAIPA’s perspective?
Amid economic and geopolitical uncertainties, IPAs played an increasingly strategic role in FDI resilience.
Several major trends shaped FDI flows in 2024. There was a strong push towards sustainable and digital investments. Nearshoring and friendshoring gained further momentum, as companies sought to build more resilient supply chains.
The green transition remained a dominant driver of investment, with significant capital flowing into renewable energy, electric vehicles, and clean tech manufacturing. Governments worldwide introduced new incentives and regulatory frameworks to attract investors into sustainable industries. The rise of digital FDI, particularly in cloud computing, AI, and semiconductor manufacturing, also reshaped global investment patterns.
Despite these positive developments, macroeconomic volatility, inflationary pressures and tighter financial conditions created challenges for FDI growth.
The global regulatory environment also evolved, with increased scrutiny of cross-border mergers and acquisitions, particularly in strategic industries such as technology and critical minerals.
In this shifting landscape, WAIPA worked closely with its members to enhance investment promotion capabilities, foster greater international collaboration and provide strategic guidance on adapting to emerging trends.
What are the main challenges facing the foreign direct investment market and WAIPA’s membership in 2025?
Continuing geopolitical tensions, economic fragmentation and persistent inflationary pressures may cause investors to adopt a more cautious approach. Regulatory shifts, particularly in areas such as supply chain security, AI governance and sustainability compliance, will require IPAs to adapt swiftly.
One of the major challenges will be the ongoing realignment of global trade and investment patterns due to geopolitical shifts, as well as the implications of new industrial policies in key economies. Many governments are implementing protectionist measures and investment screening mechanisms to safeguard critical industries, which could deter cross-border capital flows. Furthermore, the fragmentation of global markets, driven by reshoring, nearshoring and friendshoring, will force multinational companies to rethink their investment strategies.
“Increased competition for investment, particularly among emerging markets, means that IPAs must refine their value propositions to remain competitive.”
Ismail Ersahin, WAIPA
Meanwhile, increased competition for investment, particularly among emerging markets, means that IPAs must refine their value propositions to remain competitive. As capital becomes more selective, governments will need to offer not just financial incentives, but policy stability, skilled labour and infrastructure readiness. Digital transformation and the adoption of AI-driven investment promotion will become critical tools for IPAs to identify and attract investors.
For WAIPA and our members, the key challenge will be equipping IPAs with the tools and strategies needed to attract and retain investment in this rapidly evolving environment. In 2025, attracting FDI will depend on agility, adaptability and the ability to align investment strategies with emerging global trends.
What are likely to be the chief positive influences on FDI strategy in 2025?
A modest recovery is expected in FDI flows in 2025, and we are continuing to highlight to IPAs that many opportunities exist to capitalise on the trends that are shaping FDI.
The continued rise of nearshoring and friendshoring is opening new opportunities for investment in strategic sectors, particularly in manufacturing, logistics and technology. As companies look to build more resilient supply chains, countries with strong infrastructure, trade agreements and skilled labour forces will be well-positioned to attract investment.
More FDI CEO outlooks
The digital and green transition remains a major driver, with governments worldwide introducing incentives for sustainable and technology-driven investments. Green energy, electric vehicles and AI-driven automation are seeing increasing investor interest, supported by policy initiatives and international cooperation on climate goals. The push for net-zero commitments continues to influence capital allocation, particularly in industries like renewables.
Additionally, the adoption of AI and data-driven decision-making in investment promotion is enabling IPAs to target investors with greater precision. Enhanced digital platforms, predictive analytics, and sector-specific insights are helping agencies improve outreach and tailor their investment pitches more effectively.
At WAIPA, we believe that collaboration, innovation and policy alignment will be crucial in ensuring that global FDI remains a key driver of economic development and resilience. Strengthening partnerships between IPAs, governments and the private sector will be essential to maximise investment potential this year and beyond.
