FDI expert calls for a focus on opportunities amid uncertainty

As global investment sentiment weathers the storms of economic volatility and geopolitical fragmentation, Dr. James Zhan, senior advisor to the World Association of Investment Promotion Agencies (WAIPA), chairman of the executive board of WAIPA's World Investment Conference and former director of investment and enterprise at UNCTAD, has a clear message: the crisis is real but so are the opportunities.

Speaking to Real FDI on the sidelines of MIPIM 2025, Zhan said that while foreign direct investment (FDI) faces unprecedented challenges the global shift toward industrial policy and supply chain diversification is unlocking new openings for those ready to act. The situation is more complex for real estate, which by its nature involves fixed assets. “FDI is mobile, real estate is not,” he said.

“Almost 130 countries now have formal industrial policies,” Zhan said. “That, combined with the global pivot to smart manufacturing, is creating a massive demand for industrial real estate — from upgraded special economic zones to digital infrastructure and supplier networks.”

According to Zhan, more than 10,000 special economic zones exist worldwide, with hundreds more in development. These zones represent prime locations for FDI, not only for basic infrastructure but also for the kind of technology- and service-enabled facilities needed for smart, sustainable manufacturing.

Even geopolitics, Zhan argues, presents opportunities. “We’re seeing ‘trade barrier-hopping’ investment move out of China to ASEAN, Mexico, and now beyond, as supply chains restructure.”

Sustainability is another driver. New standards like Europe’s CSRD are pushing real estate owners to upgrade assets, creating demand for FDI in green retrofits, recycling systems and low-carbon facilities.

Zhan’s bottom line: the world may be in flux, but investors and investment promotion agencies should stay focused on the fundamentals. “Yes, there’s volatility and uncertainty,” he said. “But this is the time to prepare, not just for today’s opportunities but for the rebound that’s coming tomorrow.”