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The UAE ranked first in the Middle East and North Africa region, and third in the world in the emerging markets classification, according to the 2023 Foreign Direct Investment Confidence Index issued by Kearney. For the first time since its inception 25 years ago, the index provides an exclusive ranking to enable business leaders to anticipate emerging markets that are most attractive to investors. The UAE was able to rank first regionally and third in the world 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.
In 2022, the growth in the UAE’s gross domestic product reached a high rate of 7.9%, while many countries suffered from weak growth in their domestic product following the economic boom that came after the Corona pandemic in 2021. The economy is expected to continue in the UAE To grow at a steady pace in 2023 and 2024, with growth rates of 3.2%. and 4.8 percent, respectively.
competitive advantages
Rodolphe Le Maire, partner at the National Institute for Transformations, Kearney Middle East, said: “The UAE has competitive advantages that make it an attractive option for investors, especially after launching the $8.7 trillion Dubai Economic Agenda (D33), which aims to boost trade and investment and consolidate Dubai’s global position as a global hub. Entrepreneur. He added, “The UAE government is committed to diversifying the economy and enhancing the business environment, which constitutes an essential engine for advancing economic development and keeping pace with the rapid developments taking place in the world.”
Region
The UAE ranked 18th in the world, joined by Qatar (21st) and Saudi Arabia (24th), which strengthened the presence of Middle Eastern countries on the global index.
As for Saudi Arabia’s strong performance on the global ranking index, it came as a result of the Kingdom’s record high growth rates in the gross domestic product, which reached 8.7% in 2022, in addition to comprehensive reforms to enhance the business environment, and the presence of encouraging expectations regarding the financial situation, as well as support for diversification. economy in the country.
While Qatar jumped three places on the global ranking index during 2022, mostly due to its hosting of the FIFA World Cup last year, along with the National Vision 2030 that aims to develop and diversify the economy, which led to increased investor interest in the country. The strong growth rate in Qatar’s GDP, which reached 4.1% in 2022, registering an increase of 1.5% compared to 2021, can be attributed to the increased investor confidence in the Qatari market.
The countries of the Gulf Cooperation Council achieved advanced positions in the classification of emerging markets. Qatar ranked fourth in the world, and Saudi Arabia ranked sixth in the world rankings. While investors are increasingly enthusiastic about investing in many countries in the Middle East; Egypt, Turkey and Morocco ranked 14th, 15th and 16th in the Emerging Markets ranking, respectively.
global level
The report issued by the International Management Consulting Company reflects the cautious optimism of investors regarding the global economy. In fact, 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; It increases the profits of their companies and enhances their competitiveness in the next three years. However, the positive sentiment among investors mixed with their concerns about recession risks.
The results of the world rankings were as follows: The United States ranked first in the world rankings, for the eleventh year in a row. Canada regained second place after falling to third place in 2022, while Japan jumped from fourth to third place, up one place from last year. As for Germany, it fell two places to fourth place, and this is likely to happen as a result of the economic challenges and the energy problem caused by the geopolitical crisis in Eastern Europe.
The United Kingdom retains the fifth position, followed by France in the sixth position. China also jumped from the tenth place to the seventh place, perhaps due to Beijing’s decision to abandon its “zero Covid” policies in the fourth quarter of 2022. This year’s survey also showed again investors’ preference for developed markets, which represent 19 out of 25 markets in the country. Countries included in the global index.
