Foreign Direct Investment
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, starting from July 1, 2023, the new Belgian foreign investment screening rules came into effect. Any deals signed from this date onward must undergo mandatory pre-closing notification to the Belgian Inter-federal Screening Commission (ISC). The regulations apply to transactions where a foreign investor gains 'control' over a Belgian strategic entity or acquires voting rights (10% or 25%, based on the sector) in such an entity. The notification thresholds vary based on the sector involved, including health, energy, transport, artificial intelligence, the aerospace industry, media, biotech, 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. The country also ranks 23rd among the 132 economies on the Global Innovation Index 2023 and 46th out of 184 on the 2023 Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 6,805 | 11,587 | -1,710 |
FDI Stock (million USD) | 604,255 | 555,736 | 523,855 |
Number of Greenfield Investments* | 215 | 271 | 281 |
Value of Greenfield Investments (million USD) | 5,017 | 7,577 | 7,288 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Belgium | OECD | United States | Germany |
Index of Transaction Transparency* | 8.0 | 6.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 6.0 | 5.3 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 7.3 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.