OECD FDI Regulatory Restrictiveness Index 2025

Annex B. Examples of recent FDI policy reforms recorded in the FDIRRI

Algeria

Until August 2025, foreign ownership in coal exploitation was limited to 49%. Following the entry into force of Law No. 25‑12 on 7 August 2025, foreign investors may hold up to 80% of the capital of an Algerian company undertaking coal exploitation, subject to a minimum 20% participation by a state‑owned national mining company.

Law No. 25‑12 also opened mineral prospection and exploration to foreign natural and legal persons, allowing them to apply directly for prospection authorisations and exploration permits without ownership or equity participation requirements. At the exploitation stage, mining activities must be carried out through an Algerian-incorporated company in which foreign investors may hold up to 80% of the capital, subject to a minimum 20% participation by a state‑owned mining company. This mandatory state participation is not scored under the FDIRRI where it applies equally to domestic and foreign private investors. Quarry exploitation remains subject to a minimum 51% Algerian ownership requirement.

Argentina

On 19 May 2025, Decree No. 338/2025 amended the Aeronautical Code and removed the nationality requirements applicable to the management of companies providing domestic air transport services. The president of the board of directors, company managers and at least two‑thirds of directors or administrators are no longer required to be Argentine nationals and must instead have their legal domicile in Argentina.

Australia

On 17 November 2025, Australia introduced updated Commonwealth Procurement Rules aimed at giving Australian businesses priority access to government contracts. Under the revised framework, where a procurement is valued at $10 000 or more but falls below the applicable procurement threshold, government entities are required to invite only Australian businesses to submit tenders. A business qualifies as Australian if it is at least 50% Australian-owned, or is mainly traded on an Australian stock exchange, is an Australian tax resident, and has its principal place of business in Australia. For procurements below the relevant thresholds, New Zealand businesses are treated in the same way as Australian businesses, consistent with the Australia – New Zealand Closer Economic Relations Trade Agreement. The rules apply to construction procurements valued from $10 000 up to, but not including, $7.5 million. For other types of public procurement valued from $10 000 up to, but not including, $125 000, procurement agencies must initially seek offers from Australian businesses. Agencies may consider non-Australian suppliers only where no Australian business submits a bid, where the bids received do not offer value for money, or where there is a documented reason for approaching external suppliers.

Botswana

On 1 October 2025, the Mines and Minerals (Amendment) Act No. 14 of 2024 entered into force. The amendment introduces a mandatory 24% citizen equity participation requirement for new mining concessions where the State does not take up its interest. As a result, foreign investors may hold a maximum of 76% equity in non-industrial mining activities.

India

On 30 December 2025, the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025 entered into force. The amendment removed the requirements that a majority of the directors and a majority of the key management personnel of an Indian insurance company with foreign investment be resident Indian citizens. However, at least one of the company’s Chief Executive Officer, Managing Director or Chairperson of the Board must continue to be a resident Indian citizen.

The amendment also removed the requirement for an insurance intermediary with majority foreign shareholding to obtain prior permission from the Insurance Regulatory and Development Authority of India before repatriating dividends.

Montenegro

Under the Law on Alternative Investment Funds (OG MNE 024/25) and the Law on Open-Ended Investment Funds with Public Offering (OG MNE 023/25), both in force since March 2025, the management of alternative and UCITS investment funds may be carried out only by management companies that are legal entities with their registered seat in Montenegro and licensed by the Capital Market Commission. The laws distinguish between management companies seated in Montenegro, those seated in an EU/EEA Member State, and those seated in third countries. Management companies from an EU/EEA Member State may operate in Montenegro through a branch or on a cross-border basis on the strength of their home‑State authorisation, whereas management companies from third countries cannot rely on a direct branch on that basis and must either establish a company in Montenegro or obtain a separate authorisation from the Capital Market Commission. For foreign (non-EU/EEA) investors, this amounts to a local incorporation requirement in the fund-management sub-sector.

Philippines

On 3 September 2025, the Philippines enacted Republic Act No. 12 252, amending Republic Act No. 7 652 (Investors’ Lease Act), extending the maximum lease period for private land by foreign investors from 50 years (renewable once for 25 years) to a single lease term of up to 99 years.

Saudi Arabia

On 7 February 2025, the 2024 Investment Law entered into force and repealed the previous Foreign Investment Law. The new law replaces the economy-wide foreign investment licensing requirement with a mandatory registration requirement for foreign investors prior to engaging in investment activities. This registration requirement is formally specific to foreign investors but appears to operate largely as a procedural requirement for activities open to investment. Prior approval is now reserved for investments in activities included in the list of excluded or restricted activities, while separate powers apply in relation to national security.

Tanzania

On 30 June 2025, the Investment and Special Economic Zones Act, 2025 entered into force, replacing the Investment Act, 2022. Under the previous framework, access to certain statutory investment guarantees depended on minimum capital thresholds that differed according to the investor’s nationality. The new Act removes this distinction. Guarantees covering the transfer of capital, profits and dividends therefore now apply without foreign investors first having to meet a higher minimum investment threshold.

The new Act also removes the nationality-based minimum capital requirements that previously affected access to credit from domestic sources. However, foreign investors must still meet a higher minimum investment threshold than domestic investors to qualify for strategic investor status and the incentives attached to it.

Viet Nam

On 3 March 2025, Viet Nam adopted Decree No. 58/2025/ND-CP establishing conditions for investment in offshore wind power projects. Foreign investors face stricter requirements than their domestic counterparts, including higher minimum capital contribution thresholds and an obligation to include a state‑owned enterprise as a project shareholder with at least 5% ownership. Additionally, foreign investors are subject to a national security review process requiring clearance from three ministries prior to investment, a requirement that does not apply to domestic investors.

On 18 March 2025, the Government of Viet Nam issued Decree No. 69/2025/ND-CP, amending several provisions of Decree No. 01/2014/ND-CP. The general 30% foreign ownership cap remains, but foreign investors may hold up to 49% in non – State‑majority banks undergoing mandatory restructuring, limited to the duration of the approved restructuring period.

Zimbabwe

On 11 December 2025, the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025 entered into force, introducing new conditions on foreign participation in several reserved activities. In retail and wholesale trade, foreign ownership is generally capped at 25%, with the limits applying to both greenfield investments and acquisitions. Foreign participation in retail trade is also subject to a minimum investment threshold of USD 20 million, while existing foreign-owned businesses must progressively divest to majority Zimbabwean ownership. Pharmaceutical retailing is reserved to Zimbabwean citizens, subject to limited discretionary exemptions for recognised international brands.

The Regulations also introduce new conditions in transport and related services. Passenger road transport, including buses, taxis and car hire, is reserved to Zimbabwean citizens, although recognised international brands may be permitted to operate subject to ministerial approval and screening based on economic empowerment considerations. In freight transport, including haulage, logistics, shipping and forwarding, foreign ownership is generally limited to 25%. Foreign participation is also subject to minimum investment thresholds of USD 10 million for haulage and logistics and USD 1 million for shipping and forwarding, as well as phased divestment requirements. Clearing and customs services are subject to ownership limits and permit requirements, with approval linked to contributions to employment, skills and technology transfer, and sustainable value‑chain development.

Further conditions apply in selected manufacturing and processing activities. Foreign ownership in grain milling is capped at 25%, and participation in greenfield investments and acquisitions is permitted only where a minimum investment threshold of USD 25 million is met and the applicable divestment requirements are observed. Foreign investors in grain milling are also subject to screening based on economic empowerment objectives. Bakeries and tobacco grading and packaging are reserved to Zimbabwean citizens, subject to limited discretionary exemptions under the permit framework.