The US is by far the largest source of greenfield foreign direct investment (FDI) by capital expenditure and has accounted for almost a fifth of global FDI announcements over the past two decades.

Since 2003, US multinationals have invested more than $3tn in overseas markets, according to fDi Markets data up to the end of May 2023. The combined total of the next three largest FDI source countries — Germany, Japan and the UK — was only marginally higher ($3.35tn) over the same period.

China has been the fifth-largest source country for greenfield FDI announcements. Companies headquartered in Asia’s largest economy have made investment pledges worth $843bn worldwide since 2003. Despite the Belt and Road Initiative (BRI), China’s global infrastructure development strategy launched in 2013, total accumulated Chinese outbound greenfield FDI stands at about a quarter the level of the US. 

Only four other countries have been the source of more than $500bn worth of greenfield foreign investment. They were France ($833bn), South Korea ($598bn), the UAE ($511bn) and Canada ($508bn), according to fDi Markets data.

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The dominance of the US is evident in its position as the top source market for FDI in 55 economies — more than a quarter of all nations worldwide (see map below). China ranks second-highest in terms of the number (14) of countries in which it is the top FDI source market. All of these countries are BRI signatories (excluding Niger and North Korea). Canada, the UK and the UAE are all the top FDI sources in 13 different countries. Meanwhile Germany is the largest source of FDI in 11 economies, most of which are spread across central and eastern Europe.

There were only five other economies that were the top FDI sources in five or more countries: France, Russia, Australia, Japan and Spain. Russian multinationals have adopted a selective approach to their outbound FDI, targeting countries with which there are political and geographical ties. Russia ranks as the top source of FDI in six countries: Armenia, Belarus, Tajikistan, Uzbekistan, Syria and Ukraine. Russia is still at war with Ukraine after its full-blown invasion in February 2022.

By a broader measure, the US is also among the top three FDI sources in 108 economies. Meanwhile, the UK ranks among the top three sources of FDI in 42 countries, followed by Germany (49), China (42), France (38), the UAE (30) and Canada (28).

At a regional level, more FDI has originated from Europe than anywhere else over the past two decades. European multinationals have announced FDI worth $6.58tn, followed by companies based in Asia-Pacific ($4.61tn) and North America ($3.57tn).

Middle Eastern countries have also played a significant role in global FDI outflows. By far the biggest player in the region is the UAE, which is the eighth-largest FDI source worldwide. The UAE is also the top source in 13 countries, all located in the Middle East, Africa and central Asia. Meanwhile, Brazil and South Africa are the biggest sources of FDI in Latin America and Africa, respectively.