Licensed and in-principle approved investments account for 65.8 percent of Bhutan’s Nu 500 billion target by 2029
Bhutan has secured business licences and in-principle approvals for foreign direct investment (FDI) projects worth Nu 329.16 billion as of October 7, 2026, bringing the country closer to its target of attracting Nu 500 billion in FDI by 2029.
At the 32nd Meet-the-Press session, Minister of Industry, Commerce and Employment (MoICE) Namgyal Dorji said the government had issued business licences for projects worth Nu 229.16 billion, while projects valued at another Nu 100 billion had received in-principle approval through FDI Registration Certificates.
“Against our target of securing Nu 500 billion in FDI by 2029, the Government has to date issued licences for FDI projects worth Nu 229.16 billion. Additionally, projects valued at Nu 100 billion have been issued with in-principle approval,” the minister said.
He said the combined value of licensed and in-principle approved projects stood at Nu 329.16 billion as of October 7.
The figure represents about 65.8 percent of the government’s Nu 500 billion target. However, the amount reflects the value of projects licensed or approved in principle, rather than foreign capital already invested or fully deployed in Bhutan.
The minister said most FDI projects approved during the 13th Five-Year Plan (FYP) were in the services sector, particularly information technology and information technology-enabled services (IT/ITES).
Other areas attracting investment include hospitality, manufacturing and agriculture, reflecting the range of sectors in which the government is seeking to expand private-sector activity.
Despite the progress in securing licences and in-principle approvals, the government acknowledged that attracting investor interest alone would not be sufficient to achieve its FDI ambitions.
The next challenge is ensuring that approved projects proceed to implementation, supported by timely regulatory clearances, access to land and infrastructure, reliable connectivity and the availability of skilled workers.
“Converting investor interest into actual capital deployment requires timely approvals, access to land and infrastructure, reliable connectivity, skilled manpower, and efficient coordination among regulatory agencies,” Lyonpo Namgyal Dorji said.
Investors also look for policy certainty, predictable procedures and a competitive operating environment, he added.
The minister also pointed to increasing competition among countries seeking foreign investment, particularly in emerging sectors such as renewable energy, digital infrastructure and advanced manufacturing.
“The latest UNCTAD World Investment Report highlights that the global FDI landscape is becoming increasingly competitive and selective, particularly in emerging sectors such as renewable energy, digital infrastructure and advanced manufacturing,” he said. “Bhutan must therefore continue improving its investment climate and strengthening investor facilitation.”
As countries compete to attract international capital, Bhutan’s ability to offer a predictable regulatory environment, efficient public services and reliable infrastructure will be important in attracting and retaining investors.
The government’s Nu 500 billion target by 2029 provides a measure of its investment ambitions, but achieving it will require continued efforts to turn approvals into operational businesses.
With licensed and in-principle approved projects now valued at Nu 329.16 billion, the focus will increasingly be on implementation, timely investment and ensuring that approved projects deliver tangible economic benefits.
Sherab Dorji, Thimphu
