A key driver of growth, both domestic and foreign investment in Tunisia is showing the results of sustained efforts, clearly reflected in Foreign Direct Investment (FDI), which recorded a remarkable increase of 20.8% in the first half of 2025, reaching 1,650.3 million dinars (MD), compared to 1,366 MD during the same period in 2024, according to data released by the Foreign Investment Promotion Agency (FIPA-Tunisia).
FDI, excluding the energy sector, created 4,677 new jobs during the first six months of the year. In foreign currencies, investment flows reached 537.2 million US dollars (+22%) and 492.7 million euros (+21.7%) compared to 2024.
FDI particularly boosted the manufacturing industry, which attracted 1,031.3 MD, an increase of 22.9%, representing 62.9% of total direct investment.
The energy sector also recorded a 60% surge, rising from 248.3 MD to 398 MD, driven by renewable energy projects and the revival of oil exploration, with the drilling of 11 exploration wells.
By contrast, portfolio investments fell by 28.3%, dropping to 9.7 MD, while the services sector saw inflows fall by 24.6% to 191 MD. Agriculture, however, grew from 11.6 MD to 20.1 MD.
France remains top investor
Geographically, France remains the leading investor with 421 MD, followed by Italy (159.4 MD), Germany (124.2 MD), the Netherlands (91 MD), and the United States (88.4 MD). Among Arab countries, Qatar leads with 66.5 MD.
In total, 623 investment operations were carried out outside the energy sector, valued at 1,242.5 MD. The sectoral breakdown of FDI shows a predominance of manufacturing industries (62.9%), followed by energy (24.3%), services (11.6%), and agriculture (1.2%).
Tunisia aims to attract 3,400 MD in foreign investment by the end of 2025, and 4 billion dinars in 2026, the first year of the new development plan (2026–2030).
Reforms remain crucial
To achieve this, however, it will be indispensable to pursue deeper reforms that build on those already undertaken to improve the business climate, aimed at mobilizing private investment, particularly FDI, in order to reduce the significant financing gap, create more and better-quality jobs, and stimulate overall productivity.
The 2016 Investment Law further liberalized investment, while other legislative reforms have strengthened investor rights, created a more favorable investment environment, and narrowed the gap between foreign and domestic enterprises, notes the OECD.
A new draft foreign exchange code is expected to facilitate international business transactions.
Authorities have also taken steps to reduce reliance on the offshore regime, with the aim of attracting more FDI and enhancing its impact on local development.
According to the OECD, “new reforms are needed to improve the contribution of FDI to productivity, innovation, and better job creation for highly skilled youth.”
It recommended improving policy coherence by aligning investment policy and promotion with Tunisia’s Vision 2035 and national plans, which aim to build a knowledge-based economy, and continuing efforts to reduce the divide between offshore and onshore regimes so as to broaden investor motivations beyond low-value-added, low-wage activities.
