The UAE has once again been recognised as one of the world’s leading destinations for foreign investment, according to Kearney’s latest FDI Confidence Index. The report ranked the UAE as the ninth most attractive market globally for foreign direct investment and identified it as the world’s most optimistic economy over the next three years.
The findings come despite a backdrop of geopolitical tensions, commodity price volatility and broader uncertainty across the global economy, highlighting the country’s continued appeal to international investors.
Original article: UAE ranked world’s most optimistic economy for foreign investors as Saudi enters global top 10 by Arabian Business.
Key Insights:
Investor Confidence Remains Strong
According to Kearney, the UAE achieved a net optimism score of 42%, making it the most optimistic economy among surveyed investors.
The report found that economic performance remains one of the country’s strongest attractions, while ongoing efforts to reduce regulatory barriers and expand investment incentives continue to support investor confidence.
The UAE also maintained second place in Kearney’s Emerging Markets Index for the third consecutive year, ranking behind China and ahead of Saudi Arabia.
Innovation Is Playing a Larger Role in Investment Decisions
One of the most notable findings from this year’s report is the growing importance of technological and innovation capabilities when investors evaluate markets.
Kearney reported that innovation has overtaken legal and regulatory efficiency as the most influential factor in foreign investment decisions. The shift reflects growing interest in artificial intelligence, digital infrastructure, data centres and emerging technology ecosystems.
For the UAE, continued investment in these areas may help strengthen its competitiveness as global capital increasingly targets innovation-led growth opportunities.
Gulf Economies Continue to Gain International Attention
The report also highlighted Saudi Arabia’s entry into the global top 10 for FDI confidence for the first time, reflecting growing investor interest across the wider Gulf region.
According to Kearney, investors are increasingly directing capital towards markets that combine economic resilience, innovation capability and long-term growth potential.
This trend supports the broader regional diversification strategies being implemented across the Gulf and reflects the increasing prominence of the region within global investment flows.
Why These Rankings Matter
Foreign direct investment rankings provide insight into how international investors view future opportunities rather than simply measuring current economic performance.
The latest report suggests that investors continue to see the UAE as a market capable of attracting capital despite global uncertainty. Factors such as economic stability, ongoing reforms and investment in future-focused industries remain important considerations for international businesses and investors.
While global risks remain present, the UAE’s continued position among the world’s leading investment destinations highlights its ability to remain competitive in an increasingly selective investment environment.
