Developed markets dominate the top 25, but emerging markets like the UAE and Saudi Arabia witness significant rises
The UAE climbed from 18th to 8th place on Kearney’s 2024 FDI Confidence Index, along with ranking 2nd on the Emerging Market Index after China, showcasing its successful economic diversification.
UAE’s FDI inflow
FDI inflows to the UAE rose from $20.7bn in 2021 to $22.7bn in 2022, representing 60 per cent of total FDI attracted to Gulf Cooperation Council (GCC) countries.
Rudolph Lohmeyer, partner at National Transformations Institute, Kearney Middle East highlighted the UAE’s visionary leadership and economic diversification efforts, attributing the higher ranking to sustained policy reform and investor confidence. “The UAE’s remarkable ongoing rise in Kearney’s 2024 FDI Confidence Index is a clear reflection of its visionary leadership and decisive push towards economic diversification, which have firmly cemented the UAE’s position as a magnet for global investment.”
“Its higher ranking reflects growing investor confidence driven by the UAE’s sustained track record of policy reform. The UAE’s demonstrated resilience, state-of-the-art infrastructure, robust capital markets, and a thriving tech ecosystem, enable it to offer a uniquely attractive value proposition for global investors, even in the context of intense global competition for investment.”
Investment appeal
The report has China, the UAE, Saudi Arabia, India, Brazil, Mexico, Poland, and Argentina in the top eight positions, and they are the only emerging markets included in the world rankings.
It notes that the UAE’s push towards building a business-friendly environment which includes world-class infrastructure, and a growing tech ecosystem have fueled investment in sectors like fintech, e-commerce, agri-tech, logistics, ICT, and renewable energy, have attracted considerable interest and funds, noted the report.
Regionally, the Americas has the most markets on the list with nine, followed by Asia Pacific at seven, the Middle East and Africa at five, and Europe at four.
Furthermore, Southeast Asia continues to show its strength, with Thailand, Malaysia, Indonesia, and the Philippines all among the top 15. Seven of the 25 markets on the Index—Poland, Chile, Romania, Peru, Hungary, Uruguay, and Oman—joined the list for the first time.
Survey methodology
The 2024 Kearney FDI Confidence Index gathers primary data from senior executives of leading global corporations, with the UAE’s rise reflecting growing investor optimism and confidence in the country’s policies.
Global economic trends
Meanwhile, the US maintains the top ranking, while China, Canada, and Japan experienced shifts in positions.
Developed markets dominate the top 25, but emerging markets like the UAE and Saudi Arabia witnessed significant rises.
Despite geopolitical tensions and regulatory challenges, 88 per cent of investors plan to increase FDI in the next three years, with AI adoption playing a crucial role in business operations and investment decisions.
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