By Ashok Kaul, Michael Caracache and Feras Abul

The global landscape of International Investment Agreements (IIAs) is shifting rapidly and becoming increasingly complex. The traditional model of investment treaties, dominant for decades, is being challenged by geopolitical fragmentation and a surge in costly investor-state disputes. Amid these shifts, geoeconomics is re-emerging as a central force, shaping how countries compete and cooperate through trade, investment and regulation.

This evolving environment brings significant risks and opportunities. Nations with large portfolios of older, outdated investment treaties are particularly exposed. These agreements - often brief, imprecise and lacking modern policy safeguards - expose host states to significant litigation risk and can restrict their sovereign ability to regulate in the public interest. Meanwhile, more agile competitors are actively expanding their networks with sophisticated modern agreements and exploring a new generation of instruments focused on in vestment facilitation and targeted sectoral cooperation.

To safeguard national interests and secure economic opportunities, governments must adopt a coordinated and forward-looking strategy. Forging durable, mutually beneficial partnerships will be critical to building investment frameworks that can endure economic and political shocks.

To help governments adapt, Roland Berger recommends a focused approach built around three core actions:

• Mitigate risk by modernising the old – review and update legacy treaties to eliminate vulnerabilities.
• Expand opportunity by negotiating the new – build a targeted, future-ready treaty network.
• Ensure coherence with a full toolbox – tailor agreements to strategic objectives, moving beyond a one-size-fits-all approach.

This moment of transition offers a rare opportunity: to future-proof investment frameworks, attract sustainable capital, and secure a stronger global position. Governments that act decisively today will not only reduce legal and financial exposure but also strengthen their ability to compete in an increasingly complex global economy. The path forward requires courage, coordination, and vision - but the reward is a resilient, modern framework that balances national sovereignty with long-term growth.

Explore our report on how international investment agreements are being reshaped in today’s geoeconomic landscape. We examine the risks of outdated treaties, outline the emergence of modern, sector-focused agreements, and present a clear three-pillar strategy for governments to protect national interests, expand opportunities, and build resilient frameworks for sustainable growth.