Last Updated on: 20th July 2023, 08:51 pm
UAE is The Preferred Destination For Foreign Investors in The Middle East
In the most recent Kearney Foreign Direct Investment Confidence Index (FDICI) in 2023, the United Arab Emirates (UAE) emerged as the top location for international investors in the Middle East and North Africa (MENA) region.
In the report’s Emerging Markets Ranking, the United Arab Emirates ranked first in the region and third in the world after China and India, and has shown impressive economic performance, especially over the past year.
Here is the chart with the top 10 emerging markets:
| Rank | Country |
| 1. | China (including Hong Kong) |
| 2. | India |
| 3. | UAE |
| 4. | Qatar |
| 5. | Thailand |
| 6. | Saudi Arabia |
| 7. | Brazil |
| 8. | Mexico |
| 9. | Argentina |
| 10. | Malaysia |
The FDICI helps investors and entrepreneurs choose the market and country that is best for them and provides them with a favorable business environment. The report hailed the UAE’s performance in 2022, with GDP growth of 7.9% despite the pandemic, while other economies struggled.
According to the index, the UAE is projected to grow steadily in 2023 and 2024, with growth rates of 3.2% and 4.8%, respectively. This growth is attributed to the UAE’s favorable investment environment and the launch of the Dubai Economic Agenda, a US$8.7 trillion economic plan aimed at boosting trade and investment to transform the country into a global hub.
Rudolph Lohmeyer, a partner at the National Transformation Institute in Kearney Middle East, said the UAE government is committed to diversifying the country’s economy and improving the business environment. Investors are encouraged by these reforms, making the UAE an exceptionally attractive destination for them.
MENA Region
In the ranking of developed markets, the United Arab Emirates is ranked 18th globally, followed by Qatar at 21st and Saudi Arabia at 24th. Saudi Arabia’s strong performance is due to several factors including GDP growth of 8, 7% in 2022, business-friendly reforms, promising fiscal outlook, and progress on economic diversification.
Qatar has climbed three places in the world compared to last year, largely because it is the host country of the 2022 FIFA World Cup, which has increased investor interest. Qatar’s National Vision 2030 also aims to diversify the country’s economy away from oil, thereby boosting investor confidence.
GCC countries such as Qatar and Saudi Arabia also performed well in the emerging market rankings, with Qatar ranking fourth and Saudi Arabia sixth in the world. Additionally, other Middle Eastern countries such as Egypt, Turkey, and Morocco ranked 14th, 15th, and 16th respectively, indicating growing investor confidence in the region.
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