Bhutan approved 21 new foreign direct investment (FDI) projects worth Nu 165.6 billion during the 2025–2026 fiscal year, marking one of the strongest investment years and signalling growing confidence among foreign investors in the country’s economic prospects. This, according to the Department of Industry (DoI), Ministry of Industry, Commerce and Employment (MoICE), is expected to create 704 employment opportunities for Bhutanese. In addition, three existing FDI companies received approval to expand their investments by Nu 1.15 billion.
The scale of investment approvals comes despite a decline in the number of new FDI Registration Certificates (FDIRCs) issued during the year, indicating that investors who enter the system are increasingly progressing from registration to actual project implementation.
The DoI issued 33 FDI Registration Certificates in 2025–2026, compared to 62 in the previous fiscal year, representing a decline of 46.8 percent. However, officials said the drop needs to be understood in context, as the unusually high number of registrations in 2024–2025 was largely due to a policy change requiring branch offices of commercial banks to obtain separate licences, temporarily increasing registration numbers.
Despite the decline, FDIRC issuance remains higher than previous years. The department issued 25 certificates in 2023–2024, showing that foreign investment interest continues to remain stronger than earlier periods.
The DoI said the registration process has also become more efficient, with FDI Registration Certificates issued within three working days once a complete application is received. The certificate remains valid for one year, during which investors are required to complete project approval procedures.
More importantly, the number of approved FDI projects has shown a steady upward trend over the past four years. Approved projects increased from eight in 2022–2023 to 16 in 2023–2024, 17 in 2024–2025, and reached 21 projects in 2025–2026.
“Overall, the data reflects expanding investor interest with increasing diversification between manufacturing and service-oriented projects over the period,” the DoI stated.
The largest share of investment approvals came from the hydropower sector. Of the total Nu 165.6 billion, Nu 162.5 billion was committed to two hydropower projects, reinforcing Bhutan’s position as an attractive destination for clean energy investment.
While hydropower continues to dominate investment volumes, other sectors are showing encouraging momentum, particularly manufacturing and services.
The production and manufacturing sector recorded a strong recovery. After approvals declined to four projects in 2023–2024 from six the previous year, the sector rebounded with eight projects in 2024–2025 and further increased to 10 approved projects in 2025–2026.
The services sector also remained resilient. After growing from two approved projects in 2022–2023 to 12 the following year, approvals moderated before recovering to 11 projects in 2025–2026, reflecting continued investor interest in service-based industries.
Beyond attracting new investments, the government has increasingly focused on strengthening investor facilitation and ensuring existing projects receive support to operate and expand.
One indicator of this growing ecosystem is the rise in investor card services. The number of investor cards processed increased from 21 in 2022–2023 to 46 in 2025–2026, representing a 119 percent increase over four years.
Investor cards allow foreign investors and promoters of FDI companies to enter and exit Bhutan multiple times and remain valid for three years before renewal.
The department also supported foreign professionals working with FDI companies through work permit recommendations. After no recommendations were recorded in the first two years of the reporting period, requests increased significantly to 74 in 2024–2025 and remained high at 63 in 2025–2026.
Other facilitation services included approvals related to share transfers, changes in project costs, expansion of business locations, additional business activities, increased production capacity and foreign investor clearances.
Although smaller in volume, officials said these services are critical in helping investors adapt to changing business needs and ensuring that approved projects are successfully implemented.
The DoI also continues to coordinate with relevant agencies, including the Department of Labour and the Department of Immigration, to facilitate work permits, multiple-entry visas and other investor-related clearances.
The latest figures indicate a shift in Bhutan’s FDI landscape, from simply attracting foreign investors to creating an environment where investments can mature, expand and contribute more meaningfully to the economy.
The increase in approved projects, rising investor support services and continued diversification into manufacturing and services suggest that Bhutan’s investment ecosystem is gradually strengthening.
While hydropower remains the backbone of foreign investment, growing activity in other sectors reflects a broader opportunity for economic diversification.
With major investments continuing to move forward and investor confidence showing resilience, Bhutan’s latest FDI figures present a positive signal at a time when the country is seeking greater private sector growth, employment opportunities and economic transformation.
Sherab Dorji, Thimphu
