Governments around the world are tightening their scrutiny of foreign direct investments  

Increased sector scope and concerns around a more aggressive approach to identifying non-notified transactions is leading to rising numbers of filings

Recent legislative reforms have increased the New Zealand government's ability to take national interest considerations into account, but have also looked to exclude lower-risk transactions

Japan continues to tighten foreign direct investment reviews but also offers a prior notification exemption

Government approval is required for all foreign investments from countries sharing a land border with India

China continued to strengthen its national security regulatory regime by introducing the new Data Security Law in 2021

Australia requires a wide variety of investments by foreign businesses to be reviewed and approved

The National Security and Investment Act introduces a mandatory obligation to secure clearance for certain types of transactions

Recent political pressure has been pushing toward a specific legal regime for foreign investment in Switzerland.

Measures enacted to protect the Spanish economy against the COVID-19 crisis may persist longer than expected

Further developments to Russian foreign investment laws introduce new requirements for investors and simplify regulation in some spheres

Investments relevant to national security are subject to review

In the Netherlands, there are only FDI rules and FDI-like rules in place that apply to specific sectors

In response to the COVID-19 emergency, the screening powers of the Italian government were significantly expanded

The Federal Ministry for Economic Affairs and Energy continues to tighten FDI control, but the investment climate remains liberal in principle

Following major reforms, the French Foreign Investments Control regime is now reaching cruising speed

Member States are introducing or expanding investment screening regimes, and the European Commission is now playing an active role

New rules require transactions involving Swedish security-sensitive activities or assets to undergo a security screening

Deals are generally not blocked in Finland

The Investment Screening Act requires a careful assessment of investments involving Danish entities

Foreign direct investments, whether undertaken directly or indirectly, are generally allowed without restrictions or the need to obtain prior authorization

Expanded jurisdiction, mandatory filings and a substantially increased pursuit of non-notified transactions have changed the landscape 

Since COVID-19, deals involving foreign state-owned enterprises or enterprises related to public health or the supply of critical goods and services are increasingly subject to review

A guide to navigating the rules for investing in countries that require foreign direct investment approval

Taiwan continues to promote FDI under a two-track screening mechanism for foreign and PRC investors.

New Zealand has recently seen a period of stabilization of the overseas investment regime.

The Republic of Korea continues to welcome foreign investment, offering enhanced incentive packages and easing regulations while heightening scrutiny over transactions involving strategic industrial.

The Japanese government expands business sectors subject to Japan's FDI regime to secure stable supply chains and mitigate the risk of technology leakage and diversion of commercial technologies into military use.

FDI continues to be an area of focus for the Indian government, which has announced plans to attract further foreign investment into the country.

China continues to optimize its foreign investment environment by reducing investment restrictions, opening up market access and lowering investment thresholds into listed companies.

Australia's FDI regimes underwent some modifications in 2024, designed to streamline the process of carrying out investments.

FDI in the UK is covered by the National Security and Investment Act 2021, and in 2024 the government continued to update information and guidelines concerning the legislation.

Foreign direct investment is permissible in the UAE, subject to applicable licensing and ownership conditions.

Strengthening Türkiye's position as a key investment hub remains a government priority.

Apart from limited sector-specific regulations, there is currently no general FDI regime in Switzerland. An FDI Act is expected to come into force in 2026 at the earliest.

In its second year of operation, the Swedish FDI Act has become a standard component of a large portion of all transactions involving Swedish companies.