New Zealand: Investing
In this page: FDI in Figures | What to consider if you invest in New Zealand | Procedures Relative to Foreign Investment | Investment Opportunities
According to UNCTAD's World Investment Report 2024, New Zealand received USD 3.56 billion in FDI inflows in 2023, down by 54.8% compared to the previous year. At the end of the same year, the total stock of inward FDI was estimated at USD 99.12 billion, around 39.8% of the country’s GDP. As of September 2024, data from the national statistics office reveals that of the NZD 572.3 billion total foreign investment in New Zealand, 57.5% originated from Australia, the United Kingdom, the United States of America, and Singapore, with 27.7% being direct investment, 51.6% portfolio investment, 3.8% financial derivatives, and 17% other investment. Around half of the total FDI is directed towards financial and insurance services, with minor shares for public administration and safety, and manufacturing industries.
FDI inflows are attracted by the open and business-friendly economy, low levels of corruption, good protection of property rights, high living standards, political stability, and advantageous tax policy. The Overseas Investment Office (OIO) is the regulator responsible for the administration of the Overseas Investment Act 2005 (OIA), the statute that regulates investments in New Zealand assets by overseas investors. The OIA sets out a consent regime in relation to investments that meet a value threshold or are in respect of certain types of land. Private entities, whether foreign or domestic, enjoy the freedom to own and operate business ventures in New Zealand. The government does not discriminate against foreign investors regarding the establishment and ownership of businesses, though it imposes specific restrictions on foreign ownership of strategic enterprises like Air New Zealand and Chorus Limited, a telecommunications infrastructure provider. In 2021, adjustments were made to the foreign investment framework, streamlining the Overseas Investment Office's screening process. Notably, a "national interest test" is now applicable to foreign government investment in New Zealand, with a threshold set at 25%, with certain exceptions. New Zealand’s downsides include vulnerability to natural disasters, geographical isolation, and a limited domestic market. In early 2025, the country launched Invest New Zealand, a new agency designated to reduce red tape, offer support, and boost FDI in critical sectors, thereby creating more opportunities for businesses and stimulating economic growth. The overall business climate in the country is considered positive, and New Zealand ranks 25th among the 133 economies on the Global Innovation Index 2024 and 11th out of 184 countries on the latest Index of Economic Freedom.
| Foreign Direct Investment | 2020 | 2021 | 2022 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 3,886 | 3,993 | 7,539 |
| FDI Stock (million USD) | 92,363 | 92,768 | 93,854 |
| Number of Greenfield Investments* | 67 | 70 | 77 |
| Value of Greenfield Investments (million USD) | 1,967 | 7,544 | 2,571 |
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.
New Zealand's efficient and market-oriented economy offers benefits for all investors, such as overall business stability, numerous free trade agreements and active government support for investment. In 2020, the World Bank awarded New Zealand first place in its country rankings for ease of doing business (Doing Business, 2020).
The main strengths of the country are:
The main weak points of the New Zealand economy are:
In 2016, the government established a Global Strategy to attract more international investment with a triple objective: to attract FDI with higher added value, to encourage multinational companies to set up their research and development in the country and to convince private investors and other entrepreneurs to reside in the country. In support of this strategy, the government has, for example, redesigned the visa system for investors and made it possible to access public subsidies for partnerships between domestic and international companies which in the past were only available to 100% New Zealand- owned businesses.
New Zealand Trade and Enterprise (NZTE) is the Government of New Zealand's international trade development agency. Its mission is to provide support to exporters to develop a productive, sustainable and inclusive economy.
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Latest Update: May 2025
