Alabama has seen significant growth in its Foreign Direct Investment (FDI), reaching $3.5 billion last year. This surge has been instrumental in job creation across various key industries, attracting businesses from around the globe.

A recent report from the Alabama Department of Commerce highlights that communities in the state successfully rolled out 50 FDI projects in 2024, leading to over 3,700 job commitments in sectors like auto manufacturing, shipbuilding, and lumber.

Interestingly, FDI accounts for nearly half of the total new capital investment of $7 billion generated in Alabama last year.

“FDI is a crucial driver of Alabama’s economic progress, spurring job creation and enhancing its standing in the global marketplace,” expressed Ellen McNair from the Alabama Department of Commerce. “The influx of foreign investment signals the trust international firms have in our workforce and business climate.”

She also mentioned that this success illustrates Alabama’s commitment to cultivating global partnerships.

McNair is leading a delegation at the SelectUSA Investment Summit, a prominent event focused on FDI in the U.S., which the U.S. Department of Commerce is hosting this week in National Harbor, Maryland.

Since its inception, the SelectUSA Summit has drawn thousands of international firms and economic development officials, producing over $135 billion in new investment and creating upwards of 105,000 jobs in the U.S. and its territories.

Attendees from the Alabama Commerce team at SelectUSA include Global Business Chief Executive Christina Stimpson, Foreign Affairs Officer Gary Walton, Senior Project Manager Angela Smith, and business development specialist Nick Shaver.

During the summit, they interact with economic development representatives and partners from various states.

Global destinations

FDI has been a powerful growth catalyst for Alabama, with foreign businesses announcing nearly $30 billion in new investments since early 2015.

Data indicates that projects related to FDI in Alabama are responsible for about 40,000 new job opportunities.

“Alabama is dedicated to nurturing international business ties and crafting an environment where global enterprises can flourish,” noted Stimpson.

“We’re actively pursuing foreign investment through focused outreach and cooperation with local stakeholders.” From 2015 until the end of 2024, Alabama has welcomed 246 FDI Greenfield projects, as per a SelectUSA report.

The automotive sector led this charge, with 61 projects launched during that period. Other significant sectors included machinery, metals, plastics, and chemicals.

Germany has remained Alabama’s leading foreign investor for the past decade, making up 17% of the FDI projects. Following it are Canada at 13%, South Korea at 12%, and France at 9%, as detailed by SelectUSA.

“Foreign direct investment is crucial in transforming Alabama’s economy into a global contender,” explained Walton from the Global Business Office. “International firms bring not only investment but also innovation, technology, and valuable job opportunities for our residents.”

“We’re honored to be a location where global businesses can succeed,” he added.