The Belgian economy has traditionally been characterised by high foreign direct investment (FDI). According to the 2022 World Investment Report published by UNCTAD, FDI inflows have risen considerably to reach USD 11.5 billion in 2021 (compared with USD 6.8 billion a year earlier), despite the volatility caused by the COVID-19 pandemic. In 2022 the country recorded negative FDI flows estimated at USD -1.7 billion, while FDI stocks fell slightly to almost USD 524 billion, compared with USD 555 billion the previous year. The main investing countries remain France, the U.S., Germany, the United Kingdom and Italy (by ultimate investing country - data OECD). Investments continue to be mainly oriented towards financial and insurance activities, manufacturing, professional, scientific and technical services, and administrative and support service activities. According to the latest data from OECD, FDI inflows reached in the first half of 2022 were negative by USD 7.8 billion, a similar trend to the one recorded in the same period one year earlier (USD -7.5 billion).

Belgium's investment attractiveness can be attributed to its strategic geographic position at the crossroads of the main European markets, the quality of transport, logistics and telecommunications infrastructure, its trade specialised in semi-processed and semi-finished goods, a multilingual and qualified labour force and high levels of purchasing power. The stability of society, the quality of the labour and the infrastructures have been attracting projects. There are currently no limits on foreign ownership or control in Belgium and there are no distinctions between Belgian and foreign companies. However, in June 2022 the government agreed on the text of a cooperation agreement implementing a single, uniform screening mechanism to be applied to foreign direct investments into Belgium (in line with EU Regulation 2019/452). The law would introduce an ex ante screening mechanism for non-EU investors intending to invest in a number of strategic sectors (including health, energy, transport, artificial intelligence, and the aerospace industry, media, etc.). Finally, Belgium ranked 18th out of 82 countries in terms of business environment in the latest Economist Business Environment ranking; recording the same position in the Corruption Perception Index.

Investment Opportunities

The Key Sectors of the National Economy

• Food: the food industry comprises a major sector of the economy. The world's largest food groups are active in Belgium (Danone, InBev, Coca-Cola, Kraft Foods Belgium, Nestlé, Materne, Ferrero, etc.).
• Biotechnology: around 140 companies are active in biotechnology in Belgium. Universities and research centres have forged strong links with economic players to develop this forward-looking sector.
• Property industry: Brussels offers a strategic location, an attractive property market and the presence of key European decision-making bodies, making it the ideal headquarters for major corporations. Hundreds of multinationals – mainly American and Japanese – have their European headquarters in Belgium.
• Transport and logistics: Belgium is the perfect location for a logistical base, headquarters or distribution centre in mainland Europe. The infrastructure, skills and IT facilities provide an ideal environment and beachhead for conquering the European market.
• Automotive: over the past 20 years Belgium has turned out an average of 1,000,000 vehicles a year, most of them destined for export. Belgium is a key player in vehicle assembly. With plants like Opel Antwerp, Ford Genk, Audi Forest/Brussels, Volvo Europa, Van Hool (buses) and Truco, Belgium has a strong presence in the production market.
• The information and communication technology sector is dynamic in Belgium, notably thanks to the quality of telecommunication infrastructure.
  
• Aerospace: Belgian industry plays a key role in the aerospace sector. Many aircraft bear the stamp of Belgian know-how: Airbuses, Boeing, the F-16, the Rafale, the Falcon 7X, the Ariane 4 and 5 space programs, SPOT earth observation satellites to name but a few. In its economic development plan, the Walloon Region specifically promotes competitiveness in the aerospace industry.

High Potential Sectors

There is significant growth in the service sector. The country has switched from heavy production to light manufacturing and is producing finished goods instead of steel, textiles, and raw materials. Belgium imports basic or intermediary goods, adds value to them through advanced manufacturing and then exports the finished products. With the exception of its remaining coal resources, Belgium has no significant natural resources. The renewable energies sector is developing taking into account the goals set by the European Union, but remains underdeveloped.

Privatization Programmes

At the moment, Belgium has no scheduled privatizations, although there are ongoing discussions about a possible privatization of the state-owned bank Belfius and the government share in telecom operator Proximus. Despite calls to open up the Belgian railway sector to private companies, the government announced in September 2020 that SNCB will remain the only railway operator for the next ten years.

Tenders, Projects and Public Procurement

EBP, Tenders and Projects in Belgium
Tenders Info, Tenders in Belgium
TED - European Public Markets, European Tenders

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors

Lottery, the post (Bpost, which is not officially a monopoly but is protected against private actors, as underlined by the European Commission). 

Sectors in Decline

Construction, steel, nuclear power.

Finding Assistance For Further Information

Investment Aid Agency

Investing in Belgium (Belgian Federal Government)

Other Useful Resources

The Belgian Foreign Trade Agency (BFTA)
Doing Business in Belgium (American Chamber of Commerce in Belgium)

Doing Business Guides

Investing in Belgium - Thomson Reuters Practical Law
Doing Business in Belgium
Expatica - Guide to investing in Belgium