Foreign direct investment into EU reaches $12.4 trilion
In 2024, the EU’s inward FDI stock hit $12.4 trillion, accounting for 25% of the global total, with digital and clean energy sectors driving growth amid geopolitical and post-pandemic shifts, the OECD reports.
- Europe
- Anadolu Agency
- Published Date: 03:36 | 29 January 2026
The stock of inward foreign direct investments (FDIs) into the EU totaled $12.4 trillion as of 2024, making up one-quarter of the global total, according to a recent report by the Organization for Economic Co-operation and Development (OECD).
The OECD reported on Monday that the stock of FDIs into the region was led by multinational companies with key roles in employment, innovation, and regional development in Europe, as the region is going through a transformation amid heightened geopolitical tensions, trade uncertainties, and the impact of green digital transformation in the post-pandemic world.
Investments have become more volatile and selective in recent years, especially with the COVID-19 pandemic, Russia's war with Ukraine, and rising trade tensions.
The majority of FDIs concentrate in a number of capitals and large metropolitan areas in Europe, the report says.
Regional direct investment differences have been found to be three times larger than gross domestic product (GDP) differences.
The report noted that, since 2003, around 85% of regions remained in the same position in the investment ranking with limited upwards mobility, while a significant change in the sectoral structure came to the fore, as digital activities made up over a third of total investment flows and became the largest area for FDIs, as clean energy investments are expected to nearly double in 2023-2024, reaching 20%.
Meanwhile, manufacturing sectors fell behind, but some strong clusters remain in France and parts of central and eastern Europe.
The permanence of FDIs is closely related to skilled labor, a strong innovation ecosystem, and transportation infrastructure, the report found.
Regions where these factors come together attract higher value-added investments and can retain them for longer.
The benefits of foreign direct investments (FDIs) can be seized with targeted policy support to help integrated small- and medium-sized enterprises (SMEs), while post-investment support, supplier development programs, and skills investments can contribute to the stronger integration of investments into the local economy, according to the OECD's report.