The Netherlands continues to strengthen its position as one of the world’s leading destinations for international business. Two recent developments illustrate this evolving landscape: the country’s rise in the 2026 IMD World Competitiveness Ranking and the planned expansion of its foreign direct investment (FDI) screening regime. Together, these developments reflect a broader policy approach maintaining an open and competitive economy while increasing safeguards around strategically important technologies.

According to the 2026 IMD World Competitiveness Ranking, the Netherlands has moved up two places to rank 8th globally among 70 economies. The annual ranking, published by the IMD World Competitiveness Center, evaluates countries on their ability to create long-term value for businesses, citizens, and society, drawing on economic indicators and responses from nearly 7,000 senior executives worldwide.

The Netherlands performed particularly strongly in several areas that contribute to its international business appeal. It ranked 4th for societal framework and international trade, while placing 5th for institutional framework and technological infrastructure. These results highlight strengths such as stable institutions, advanced digital infrastructure, strong connectivity to European and global markets, and a predictable business environment.

In an increasingly uncertain geopolitical and economic climate, these characteristics have become even more significant. The IMD notes that countries with trusted institutions and resilient governance are generally better positioned to absorb external shocks, support business confidence, and adapt to changing global trade dynamics. For companies considering European expansion, the Netherlands continues to offer a well-established gateway supported by high-quality infrastructure, an internationally connected economy, and a favourable innovation ecosystem.

At the same time, the Dutch government is placing greater emphasis on protecting strategic technologies through enhanced investment screening.

From 1 January 2027, the Netherlands will expand the scope of its Vifo Act (Security Screening of Investments, Mergers and Acquisitions Act) to include six additional categories of highly sensitive technologies. These include artificial intelligence, biotechnology, nanotechnology, advanced materials, sensor and navigation technology, and nuclear technology.

One of the most notable aspects of the reform is that investments conferring as little as 10% of voting rights in companies operating within these sectors may require mandatory notification to the Bureau Toetsing Investeringen (BTI). This means that not only acquisitions of control, but also minority investments, follow-on funding rounds, and incremental increases in shareholdings may fall within the screening regime.

The Dutch government estimates that approximately 1,730 additional companies will come within the scope of the expanded framework. For investors, founders, private equity firms, and multinational companies, this introduces additional regulatory considerations when structuring transactions, planning deal timelines, and assessing execution risk.

The expansion also reflects a broader shift in regulatory enforcement. In May 2026, Dutch authorities prohibited a proposed acquisition involving IT services company Kyndryl and cloud provider Solvinity on data sovereignty grounds under separate legislation. While the decision did not fall under the Vifo Act, it demonstrated an increasing willingness by authorities to intervene where sensitive technologies, critical infrastructure, or strategic national interests may be affected.

Importantly, these developments should not be viewed as signalling a retreat from foreign investment. Rather, they mirror a wider international trend. Across Europe and globally, governments are expanding FDI screening mechanisms to protect critical technologies while continuing to encourage investment in sectors that drive innovation and economic growth.

For businesses and investors, the Dutch landscape is therefore becoming more nuanced. The Netherlands remains one of Europe’s most competitive and attractive economies, offering stability, innovation, and strong international connectivity. At the same time, companies operating in strategically important sectors should anticipate greater regulatory oversight and incorporate FDI assessments into transaction planning from an early stage.

Taken together, the Netherlands‘ improved competitiveness ranking and its evolving investment screening framework demonstrate a policy direction that seeks to balance economic openness with the protection of critical technologies. As international competition for investment intensifies, this combination of competitiveness and strategic resilience is likely to remain a defining feature of the Dutch business environment.

References 

Eversheds Sutherland. (2026, June 17). Expansion of Dutch FDI screening to six new technologies. Retrieved from Eversheds Sutherland – Insights: https://www.eversheds-sutherland.com/en/netherlands/insights/expansion-of-dutch-fdi-screening-to-six-new-technologies

Invest in Holland . (2026, July 16). The Netherlands Rises to 8th in IMD World Competitiveness Ranking 2026. Retrieved from Invest in Holland : https://investinholland.com/news/the-netherlands-rises-to-8th-in-imd-world-competitiveness-ranking-2026/

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