UNCTAD Proposes Global Investment Risk-Sharing Initiative
The proposal, unveiled at the World Investment Forum 2026 in Doha, aims to lower financing barriers for developing-economy projects.
Updated on Nov. 1, 2026 in Investing
UNCTAD proposed a Global Initiative for Investment Risk Sharing at the World Investment Forum 2026, held in Doha, Qatar, from 25 to 27 October. The initiative aims to expand access to risk-reduction instruments and attract capital to underserved markets.
Why it matters
Investment risks that appear unmanageable make finance more expensive or cause it to disappear altogether, and developing economies are most exposed. Shared risk mechanisms could help turn more development priorities into investable projects.
A solar plant in a developing economy faces financing costs at least twice as high as an identical plant in Europe, according to UNCTAD. Foreign direct investment in least developed countries fell nearly 20 percent from 2015 to 2023, while political risk insurance covered around $150 billion in developing-country projects from 2018 to 2022.
The players
UNCTAD
The United Nations Conference on Trade and Development is the UN body focused on trade, investment and development, and it proposed the risk-sharing initiative.
Berne Union
The Berne Union is the global association of export credit and investment insurers, and it signed a cooperation declaration with UNCTAD.
The details
UNCTAD and the Berne Union signed a declaration of intention to strengthen cooperation on trade and investment insurance and risk mitigation. Guarantees, insurance and blended finance allocate risks to institutions best equipped to manage them, while public-private partnerships define responsibilities and dispute-resolution routes.
Timeline
25 to 27 October 2026: World Investment Forum held in Doha, Qatar, where the initiative was proposed.
2015 to 2023: Foreign direct investment in least developed countries fell nearly 20 percent.
Big Picture
The proposal extends the risk-mitigation tools that political risk insurers have long used to cover developing-country projects, which covered around $150 billion between 2018 and 2022. It positions UNCTAD to coordinate those instruments with public-private partnership frameworks rather than leaving them to individual insurers.
Higher financing costs in developing economies can make cross-border projects less attractive to investors and lenders. Shared-risk instruments such as guarantees and insurance could change those cost calculations for future projects.
The takeaway
Investment in developing economies depends heavily on how risk is allocated. Better-structured guarantees and partnerships could make capital more available where it is currently scarce.
Further reading
Explore more on Investing to see how risk shapes capital flows into emerging markets.
