UAE’s FDI Confidence Index ranks 18th globally

The UAE is a leading emerging market in the MENA region such as Kearneyof Emerging Markets FDI Confidence Index 2023 (FDICI) ranking.

Thanks to strong growth last year, an attractive business environment and focus on innovation and technological capabilities, the UAE ranked first in the region and third globally, behind China and India.

For the first time in the index’s 25-year history, this exclusive ranking is designed to provide business leaders with more insight into which emerging markets are most attractive to investors.

In 2022, the UAE’s GDP will grow by a staggering 7.9%, while many other countries will see anemic growth following the post-COVID boom in 2021.

The country is expected to continue growing steadily in 2023 and 2024, with growth rates of 3.2% and 4.8%, respectively.

“The UAE remains an extremely attractive destination for investors, especially in light of the launch of the Dubai Economic Agenda (D33) – an $8.7 trillion economic plan to boost trade, investment and boost its global Hub status. It is clear that the government remains relentlessly committed to diversifying the UAE’s economy and strengthening the UAE’s business environment.

“The disciplined way in which they have pushed economies and countries to prepare for the future has been amazing. As the energy transition unfolds around the world in every way and at all speeds, funding this ongoing transition will continue to benefit on hydrocarbon demand,” commented Rudolph Lohmeyer, Partner at the National Transformation Institute. Kearney middle East.

FDI CI MENA Ranking

UAE ranks 18th^day Globally, Qatar joins (21^Yingshi) and Saudi Arabia (24^day), improving the Middle East’s position in the index.

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.

Qatar’s move up three places in the global rankings from 2022 may be due to Qatar’s hosting of the prestigious FIFA World Cup last year, which boosted investor interest, coupled with the country’s aim to grow and diversify its economy National Vision 2030 for Globalization.

Strong growth in Qatar’s GDP, from 1.5% in 2021 to 4.1% in 2022, can also be attributed to increased investor confidence.

The GCC countries also topped the emerging market rankings, with Qatar at number four and Saudi Arabia at number six globally.

Investor sentiment is on the rise in other Middle Eastern countries, with Egypt, Turkey and Morocco ranked 14th^day15^day, and 16^day respectively in the emerging market rankings.

FDI CI 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 prospects for foreign direct investment, our results this year also reflect a degree of caution,” said report co-author, partner and managing director Erik R. Peterson ) explain. KearneyGlobal Business Policy Council. “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’s jump from 10th to 7th place could be attributed to Beijing’s decision to abandon its zero-Covid policy in the fourth quarter of 2022.

Overall, this year’s survey again showed investors’ preference for developed markets, which account for 19 of the 25 countries in the index.

The 2023 report also found that business leaders believe that globalization is and will continue to be a central force in FDI. 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.”

read: Dubai retains position as world’s top FDI destination in first half of 2022