In this episode of Invest in Türkiye Talks, we explore the shifting dynamics of foreign direct investment (FDI) with FDI Intelligence Editor Jacopo Dettoni. Dettoni shares insights into global investment trends, the intersection of geopolitics and economics, and the growing role of AI in shaping the future of FDI. With years of experience analyzing international capital flows, he sheds light on how governments and businesses are adapting to evolving economic realities.
FDI Intelligence, a publication under the Financial Times, has been covering foreign direct investment for over two decades. Unlike traditional financial news outlets that focus on stocks and bonds, FDI Intelligence specializes in greenfield investments—investments in physical infrastructure such as factories, offices, and logistics hubs. The publication offers a global perspective, covering markets from Asia to the Americas.
The investment landscape is undergoing significant transformation. Dettoni highlights the increasing influence of geo-economics—the convergence of national security and economic policy—in shaping FDI. Governments around the world are adopting protectionist measures, using investment policies as strategic tools to bolster domestic industries. Trade tensions between the US and China, for example, are reshaping supply chains and prompting businesses to explore alternative markets.
AI has also emerged as a pivotal force in the investment world. According to Dettoni, much of the recent investment in AI centers on data centers, which require substantial capital expenditures to support machine learning models. The European Union's ambitious plan to mobilize EUR 200 billion for AI investment signals a strategic push to remain competitive in the global technology race. However, Dettoni cautions that government investment announcements often raise expectations that may not always be realized at the intended scale.
The US remains the world's largest recipient of FDI, supported by robust industrial policies. Nearshoring—relocating production closer to key markets—has driven increased investment in Mexico and Central America. Europe, by contrast, faces economic stagnation, with major economies such as Germany and the UK experiencing slower growth. Nonetheless, countries like Türkiye and Morocco continue to attract investors, thanks to their strategic locations and trade agreements with the EU.
FDI journalism remains a niche sector, and awareness among business journalists about the intricacies of direct investment is still limited. Dettoni emphasizes the importance of educating media professionals on the role of investment promotion agencies and the broader economic impact of FDI. Initiatives such as training programs for journalists can help bridge this knowledge gap.
Looking ahead, the interplay between global politics and investment strategies will shape the future of FDI. The upcoming US elections and potential changes in trade policy could significantly influence investor confidence and capital flows. As businesses navigate an increasingly complex investment landscape, platforms like FDI Intelligence continue to provide critical insights to help stakeholders make informed decisions.