TDT | Manama

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Artificial intelligence and advanced technologies are emerging as the biggest magnets for global investment, with billions of dollars flowing into strategic sectors even as geopolitical tensions and economic uncertainty reshape where companies choose to invest, according to the World Investment Report 2026.

Speaking at the Bahrain launch of the report, organised by the MENA Centre for Investment at Swiss-Belhotel Seef, Dr. Astrit Sulstarova, Chief of the Trends and Data Section, Division on Investment and Enterprise at UN Trade and Development (UNCTAD), said, “Our world has entered a period of profound turbulence, reflected in seismic shifts in the global investment landscape,” noting that global FDI rose 6 per cent in 2025 to reach $1.6 trillion.

He said investment has become “more selective and more concentrated,” with capital increasingly flowing into AI infrastructure, semiconductors, critical minerals, energy transition technologies and other advanced industries.

Announced greenfield investment in these strategic sectors jumped from $109 billion in 2020 to $576 billion in 2025, while AI infrastructure alone attracted $341 billion last year, fuelled by computing and digital services. Semiconductor investment also recorded the fastest growth as countries sought to strengthen technology supply chains.

Meanwhile, greenfield investment in traditional manufacturing sectors, including textiles, consumer goods and agribusiness, fell 17 per cent, reducing opportunities for many developing economies.

Bahrain’s Investment Shift

On Bahrain, Dr. Sulstarova said FDI inflows fell to around $800 million in 2025, although cross-border mergers and acquisitions climbed to $1.4 billion, while international project finance nearly doubled to $1.7 billion. He said Bahrain and other Gulf countries should build long-term competitive advantages, particularly digital infrastructure and AI. “Rather than competing directly with larger economies, countries should focus on areas where they can build sustainable competitive advantages,” he said.

Commenting on the report, Barath Chandran, a data specialist told The Daily Tribune that it provides much-needed clarity on global investment trends. “It offers a clear, honest picture of where investment is really flowing, not just where we hope it’s flowing. The fact that strategic sectors now account for 44 per cent of global project value, up from just 16 per cent in 2020, is exactly the trend we’re positioning for,” he said.

Dr. Hana Abdulla Kanoo, Director of the MENA Centre for Investment, said the report provides valuable insights into the evolving investment landscape. “Through our collaboration with UN Trade and Development, we are pleased to bring this important global discussion to Bahrain, fostering dialogue, knowledge sharing and stronger engagement among stakeholders across the region,” she said.