International investment increased during the first half of 2026, but the number of new business projects continued to decline, raising concerns about the uneven distribution of capital across the global economy. A new report from the United Nations Trade and Development (UNCTAD) highlights a widening gap between rising investment values and the number of projects capable of creating jobs and supporting long-term development.

Released on October 2026, during the World Investment Forum in Doha, Qatar, the latest Global Investment Trends Monitor shows that global foreign direct investment (FDI) rose by 37% compared with the average half-year level recorded in 2025. However, much of this increase was driven by large transactions and financial flows, particularly in developed economies.

The findings suggest that the headline growth in investment does not necessarily indicate a broad recovery in business activity around the world.

Investment Values Rise While New Projects Decline

According to UNCTAD, the value of cross-border mergers and acquisitions reached $494 billion during the first nine months of 2026, representing a 57% increase. Despite the higher value, the number of transactions fell by 23%.

Other investment indicators also showed weakness. Announcements of new projects, known as greenfield investments, declined by 15%, while international project-finance deals fell by 11%.

Greenfield investments are particularly important because they can involve building new factories, offices, energy facilities and other productive infrastructure. A decline in these announcements may indicate fewer opportunities for future employment and economic expansion.

The figures highlight a key challenge facing policymakers: large financial transactions can increase total investment values even when the number of new projects is shrinking.

Developing Countries Face Growing Challenges

Developing economies recorded an 8% increase in foreign direct investment compared with the average half-year level in 2025. However, announcements of new greenfield projects in these economies fell by more than one-fifth.

Investment linked to the United Nations Sustainable Development Goals experienced an even sharper decline. Preliminary estimates indicate that announcements for such projects in developing countries were more than 25% lower than in 2025.

Renewable-energy project-finance activity in developing economies fell by approximately one-third, while the decline in developed economies was considerably smaller.

These trends could make it more difficult for lower-income countries to finance essential infrastructure, expand access to reliable energy and strengthen their healthcare and food systems.

UNCTAD also reported a $32 billion decline in announced greenfield investment in data centres across developing economies, raising concerns that digital infrastructure investment may be becoming increasingly concentrated in wealthier countries.

Geopolitical Tensions Add to Investor Uncertainty

The global investment outlook is being shaped by geopolitical tensions, higher energy costs and disruptions to international supply chains.

Businesses often delay major investment decisions when economic conditions become unpredictable or when the cost of financing increases. Projects involving infrastructure and energy can be particularly sensitive because they require substantial upfront capital and long planning periods.

UNCTAD reported that greenfield project announcements in West Asia declined by 52%. Globally, announced tourism projects fell by 28%, while projects in transportation and storage declined by 22% during the first half of 2026 compared with the same period in 2025.

The report linked these patterns to the additional costs and uncertainty associated with the ongoing conflict in the Middle East.

Artificial Intelligence Attracts a Larger Share of Investment

Despite the wider slowdown in project activity, some strategic industries continued to attract substantial investment.

Artificial intelligence infrastructure has become an important destination for capital, particularly in the United States. AI-related sectors accounted for more than 40% of announced greenfield investment value in the country, reflecting growing demand for computing infrastructure and data centres.

The concentration of investment in advanced technologies creates opportunities for countries with strong infrastructure, skilled workforces and supportive business environments. However, economies without reliable electricity, digital connectivity or sufficient technical expertise may find it harder to compete for these projects.

The resulting imbalance could influence future productivity, technological development and the distribution of economic opportunities across countries.

Why the Investment Gap Matters

Foreign direct investment can help economies develop productive industries, introduce new technologies, create jobs and improve infrastructure. Yet the benefits depend on where capital goes and whether projects contribute to lasting economic growth.

If investment becomes concentrated in a small number of countries and strategic sectors, many developing economies could struggle to attract the resources needed to meet their development objectives.

The challenge for governments and international institutions is therefore not simply to increase investment totals. They must also encourage investment that strengthens local industries, develops workforce skills and supports sustainable economic activity.

UNCTAD’s latest findings underline the importance of improving investment conditions while reducing the risks that discourage long-term projects.

Outlook for the Global Economy

The latest figures present a mixed picture for international investment. Rising investment values offer some evidence of resilience, but declining project announcements indicate that businesses remain cautious.

For developing economies, the priority will be attracting productive investment despite higher financing costs, geopolitical uncertainty and increasing competition for capital.

The coming months will show whether global investment activity can broaden beyond major transactions and technology-focused sectors. Until then, the gap between rising investment values and falling project numbers remains a significant concern for the international economy.