This inaugural issue of the World Bank Group’s Global Investment Competitiveness Report presents novel analytical insights and empirical evidence on foreign direct investment’s (FDI) drivers and contributions to economic transformation. Three key features distinguish this report from other leading FDI studies. Firstly, its insights come from a variety of sources, including a new survey of investor perspectives, extensive analysis of available data and evidence, and a thorough review of international best practices in investment policy design and implementation. Secondly, the report provides targeted, in-depth analysis of FDI differentiated by motivation, sector, and geographic origin and destination of investment. Thirdly, the report offers practical and actionable recommendations to developing country governments. The report’s groundbreaking survey of more than 750 executives of multinational corporations investing in developing countries finds that—in addition to political stability, security, and macroeconomic conditions—a business-friendly legal and regulatory environment is the key driver of investment decisions. The report also explores the potential of FDI to create new growth opportunities for local firms, assesses the effectiveness of fiscal incentives in attracting FDI, analyzes the characteristics of FDI originating in developing countries—so-called South–South and South–North FDI—and examines the experience of foreign investors in countries afflicted by conflict and fragility.