UAE ranked first regionally and third globally in emerging markets ranking

The UAE ranked first in the Middle East and North Africa (MENA) region, and third globally in the emerging markets ranking, according to the 2023 FDI Confidence Index issued by management consulting firm Kearney.

For the first time since its inception 25 years ago, the index provides an exclusive ranking to enable business leaders to explore the most attractive emerging markets for investors.

According to the index, the UAE managed to achieve the top position regionally, while coming globally after China and India, as a result of the strong growth witnessed by the country last year, and its promotion of an attractive business environment for investment, as well as its capabilities in the fields of technology and innovation.

He explained that in 2022, the growth in the UAE's GDP reached a high rate of 7.9%, while many countries suffered from weak growth in their GDP following the economic boom that came after the Corona pandemic in 2021.

The UAE economy is expected to continue to grow at a steady pace in 2023 and 2024, with growth rates of 3.2% and 4.8% respectively.

Rodolphe LeMaire, Partner at the National Institute for Transformations - Kearney Middle East, said: "The UAE has competitive advantages that make it an attractive choice for investors, especially after the launch of the Dubai Economic Agenda (D33) worth $ 8.7 trillion, which aims to promote trade and investment and consolidate Dubai's global position as a leading global business hub."

He added: "The UAE government is committed to diversifying the economy and enhancing the business environment, which is a key driver to drive economic development and keep pace with the rapid developments taking place in the world."

In addition, the GCC countries ranked high in the emerging market rankings, with Qatar ranked fourth globally, while Saudi Arabia ranked sixth in the global rankings.

Among the MENA countries, Egypt, Turkey and Morocco ranked 14th, 15th and 16th in the emerging markets rankings, respectively.

Kearney's report reflects investors' cautious optimism about the global economy, with a study by the firm showing that more than three-quarters (82%) of investors said they plan to increase FDI in the next three years, while 86% indicated that FDI is the most important to them, increasing their companies' profits and enhancing their competitiveness in the next three years.

Eric Peterson, managing director of Kearney's Global Business Policy Council and co-author of the study, said: "Although investors are optimistic about the FDI outlook, this year's results reflect some of their investment concerns."

"Investors have pointed to rising global commodity prices, rising geopolitical tensions, coupled with political instability in some emerging markets as key risk factors over the next three years," he said.

Kearney's Foreign Investment Confidence Index is the firm's annual survey of the world's top executives and entrepreneurs that helps rank the markets most likely to attract the most investment in the next three years.

Unlike data sources that only look back to refer to FDI flows, the FI Confidence Index provides forward-looking data and forward-looking analysis of the markets that investors target for FDI in the coming years.