UAE has moved into the 19th spot in the Kearney’s Confidence Index for global foreign direct investment 2020, thanks to its steady political and economic climate. In the Index revealed, UAE, the second-biggest Arab economy, moved two positions higher than its 2017 ranking.
The Gulf nation was listed on the index of three emerging markets – along with Brazil and China. The Index is an annual poll of global business executives naming economies that are projected to draw the largest level of investment over the next three years.
The consultancy said that “UAE’s ranking reflects positive investor sentiment based on the government’s commitment to economic diversification, innovation, infrastructure and the ease of doing business.”
“These policies are “now paying clear dividends”, boosting the country’s attractiveness to foreign investors”, said Rudolph Lohmeyer, partner at Kearney Middle East’s National Transformations Institute.
“Investors clearly anticipate that these fundamentals, combined with an extremely effective response to the crisis, will enable the country to emerge strongly from the COVID-19 crisis,” Mr. Lohmeyer said.
“The UAE is also expected to benefit from the entry into force of the Africa Continental Free Trade Area, through new trade opportunities with African countries, although COVID-19 has delayed the timeline for the agreement.”
As part of efforts to reduce the country’s dependence on oil sales and diversify its economy, the UAE has taken numerous steps to draw foreign investments.
In November 2018 the nation adopted a new law on FDI. Last July, a list of 122 economic activities spanning 13 fields, in which full participation of foreign investors will be permitted was also announced.
Mr. Lohmeyer concluded that “the shift of the Dubai Expo to 2021 is expected to fuel growth and stimulate foreign investment as the world emerges from the crisis”.
The US, Canada, Germany and Japan took up the first four spots while France, the UK, Australia, China, Italy and Switzerland constituted the top 10 in the Global Confidence Index.
