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Qatar ranks 21st globally and second regionally in Kearney’s 2023 Foreign Direct Investment (FDI) Confidence Index, with last year’s FIFA World Cup helping to boost investor interest in the country.
The index also included an exclusive ranking of emerging markets for the first time in its 25-year history, with Qatar ranked second in the Middle East and fourth globally, underscoring the positive impact of economic diversification efforts as part of Qatar’s Vision 2030.
The Emerging Markets Ranking aims to provide business leaders with additional insights into which emerging markets are most attractive to investors. Qatar’s strong GDP growth of 4.1% in 2022, up from 1.5% in 2021, partly reflects increased investor confidence. Qatar’s ranking this year also reflects its growing technological and innovative capabilities, a growing priority for investors.
Rank up
“Qatar’s steady rise in the rankings speaks to the power of stability and momentum. With the 2022 FIFA World Cup in the country, the country is benefiting from a surge in tourism, which not only boosts economic growth but also boosts the country’s and even popularity of the area.
Rudolph Lohmeyer, Partner at National Transformations, commented: “The success of the World Cup combined with the country’s continued adoption of open economic policies, commitment to economic diversification and continued investment in advanced innovative technology infrastructure have enhanced the country’s attractiveness to investors.” Research So, Kearney Middle East.
FDICI Mena Ranking
The UAE and Saudi Arabia rank 18th and 24th respectively in the FDI Confidence Index, boosting the Middle East’s influence. The GCC countries also topped the emerging market rankings, with the UAE at number three and Qatar at number four globally.
The UAE’s GDP grew by 7.9% in 2022, and the country is expected to continue growing steadily in 2023 and 2024, with growth rates of 3.2% and 4.8%, respectively. The index showed a strong business environment in the UAE, with the country’s growing technology and innovation capabilities standing out among factors most valued by investors.
The Kingdom’s strong performance is supported by high GDP growth (8.7% in 2022), comprehensive pro-business reforms, a strong fiscal outlook, and accelerated economic diversification.
Investor sentiment is on the rise in other Middle Eastern countries, with Egypt, Turkey and Morocco ranking 14th, 15th and 16th among emerging markets respectively.
FDICI global ranking
The report from the global strategy and management consulting firm reflected cautious optimism among investors about the global economy. In fact, more than three quarters (82%) say they plan to increase FDI over the next three years, and 86% believe FDI will be more important to their business profitability and competitiveness over the next three years. However, concerns about downside risks dampened the positive sentiment.
“While investors are generally optimistic about the outlook for foreign direct investment, our results this year also reflect a degree of caution,” said report co-author Eric Kearney, partner and managing director of Kearney’s Global Business Policy Council. Erik R. Peterson said. “Investors cited rising commodity prices, heightened geopolitical tensions and heightened political instability in emerging markets as key risk factors for the next three years.”
The United States topped the list for the 11th year in a row. Canada returned to second place after falling to third place in 2022, and Japan jumped to third place from fourth last year. Germany dropped two places to fourth, likely due to economic and energy challenges due to the geopolitical crisis in Eastern Europe. Great Britain maintained its fifth position, followed by France. China jumped from 10th to 7th, likely due to Beijing’s decision to abandon its zero-coronavirus policy in the fourth quarter of 2022. Overall, this year’s survey again showed investors’ preference for developed markets, which accounted for 19 of the 25 developed markets. countries on the index.
business leaders
The 2023 Index also found that business leaders believe that globalization is and will continue to be a central force in foreign direct investment. The vast majority of respondents (66%) expect globalization to increase over the next three years, while only 23% expect it to decrease. Those looking forward to global expansion cite interconnected digital infrastructure combined with growing trade opportunities and limited trade barriers as the main drivers. But investors also acknowledge that globalization is changing.
“While our findings suggest that investors believe in the benefits of globalization and expect it to intensify, they also expect more regionalization over the next three years and that governments will seek strategies to increase self-sufficiency,” said report co-author Dr. said Ritoland, manager of the Global Business Policy Council. “These results point to an awareness that while globalization will continue, its nature may be changing – and business leaders need to prepare accordingly.”
Copyright 2022 Al Hilal Publishing and Marketing Group Courtesy of SyndiGate Media Inc. (Syndicate Information).
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