Foreign investment has long contributed to New Zealand’s growth, and under the right conditions, it could be the key to the next wave.

For the country to lift productivity, grow high-value industries, and compete globally, New Zealand needs more than just homegrown capital and know-how. It needs the scale, networks and expertise that global investors bring.

“Overseas investment isn’t just about the money, it’s about capabilities,” says Joy Wang, a partner in New Zealand at global law firm Dentons. “If we want to grow our economy and our talent base, we need both.”

Wang advises on mergers, acquisitions and foreign investment regulation. She believes the public conversation on foreign investment should expand to focus beyond ownership risks and the size of an investment. “The real story is in what that investment brings with it,” she says.

“Behind many of New Zealand’s most successful start-ups is a foreign investor,” Wang says. “They bring not just money, but experience, connections, and capabilities that can transform whole industries.”

Growth beyond capital

Overseas investment can act as an accelerant and lead to funding for projects that might otherwise stall, enabling them to scale faster, and introducing expertise that helps meet global standards sooner.

Wang points to examples in the manufacturing sector, where overseas capital has driven overdue upgrades in plant and machinery. “In one case, a New Zealand business had been operating outdated equipment for years,” she says. “Then an overseas investor came in, invested heavily in modernising the existing plant and equipment, introduced new technology, and transformed the business’ productivity and sustainability. That kind of change doesn’t just benefit the company; it lifts the sector and economy.”

She says such improvements often flow into supply chains and create demand for higher-skilled jobs, generating growth well beyond the original deal.

Building capability for long-term growth

For Wang, the real multiplier effect comes from the expertise foreign investors bring. “They often have global training programmes, compliance systems, and technology that local companies haven’t had access to,” she says. “Connecting New Zealand teams to international networks builds skills, raises standards, and opens export markets.”

That capability transfer can also support workforce retention. “If you create higher-value, globally competitive jobs here, you give people a reason to stay and develop their careers in New Zealand rather than moving overseas,” Wang says.

Target sectors for growth

Dentons sees a significant opportunity for foreign investment in renewable energy, advanced manufacturing, technology, and large-scale build-to-rent developments.

“These are areas where local capital is limited or risk appetite is low,” Wang says. “Overseas investment can fill that gap, helping us grow industries that will matter in years to come.”

She adds that in emerging sectors where New Zealand is still finding its feet, offshore expertise is just as important as money. “International investors have already solved some of the challenges we’re facing now. Tapping into that experience accelerates our learning curve.”

Policy settings and growth potential

The Government is currently reforming the Overseas Investment Act, consolidating several existing consent tests into a single, more discretionary “national interest” test. While Dentons supports streamlining, its submission to Parliament cautioned that the changes risk creating uncertainty for investors, which could potentially slow growth.

One concern is that many details would be set through ministerial directive letters rather than legislation, increasing discretion. “High-quality investors have options,” Wang says. “If our processes are clear and stable, we can attract the right kind of capital; the kind that grows our economy.”

Wang says long, unpredictable consent processes can deter sophisticated investors who operate on tight timelines. “If they can’t get certainty here, they’ll go somewhere else,” she says.

Staying competitive on a global stage

Wang believes New Zealand’s geopolitical neutrality remains a competitive advantage, particularly as other countries adopt more protectionist investment policies. “Globally, we’re seeing more closed doors,” she says. “If New Zealand can keep itself open and predictable, we can stand out as a safe destination for investment.”

She argues that the public conversation should focus less on whether investment is foreign or domestic, and more on whether it delivers growth. “A lot of businesses New Zealanders think of as local household names are actually overseas-owned. They’ve done nothing but good for the economy,” Wang says.

The growth equation

“It’s not just about who owns what, it’s about what that ownership delivers,” Wang says. “When foreign investment helps a business expand, lift standards, and hire more people, that’s a win for New Zealand’s growth story.”

She says the challenge is designing rules that protect the national interest while welcoming investment that grows industries, skills, and productivity. “If we want to move the dial on growth, we need more capital and more capability, and that means making it easier for the right investors to choose New Zealand.”

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