Renewable energy and communications attracted the most foreign capital in 2021


Renewable energy and communications attracted the most foreign capital in 2021

Renewable energy and communications attracted the most foreign capital in 2021 – $157 bln (according to the fDi Report 2022: https://bit.ly/3MytWyK).

Sustainability, the digital economy and supply chain restructuring were among the major factors shaping global FDI flows in 2021.

🔹 Foreign investors announced a total of 13,169 greenfield FDI projects during 2021 (+11% from 2020), which involved a total capital expenditure of $610 bln and created more than 1.6 million jobs.

🔹 Renewable energy attracted the most foreign capital of any sector – $85.2 bln (40% – solar energy projects, 27% – wind power projects). The second most active sector was communications, which attracted $72.2 bln in 2021. Two-thirds of the total FDI went to data processing, hosting and related services projects, as investors moved to serve accelerated adoption of cloud technology and demand for data centre capacity.

🔹 The number of FDI projects in the semiconductor industry almost doubled to 107, with a combined capital expenditure of $59.1 bln. FDI in the food and beverages sector increased with 628 announced projects and $27.4 bln in capital investment. Given the major shock to global commodity prices following the war in Ukraine and the growing list of companies suspending activities in russia, the food and beverages industry looks set to undergo a major shift in supply chains.

🔹 Almost half of global FDI projects in 2021 were announced in Europe, which maintained its place as the most sought-after region by investing companies.

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