The UAE was ranked first within the Center East area and jumped 4 locations to fifteenth place globally within the newest Kearney’s 2021 Overseas Direct Funding (FDI) Confidence Index, because the nation’s enterprise atmosphere demonstrates continued strengths in elements which might be key to buyers, together with authorities incentives.
The nation’s sturdy enabling atmosphere, that includes superior technological infrastructure and excessive innovation ranges, can be central to its FDI attractiveness.
The UAE is certainly one of solely 5 nations globally that achieved a better rating this yr in an more and more aggressive world FDI attraction atmosphere.
The Kearney report discovered that buyers are extra cautious relating to FDI globally, as they gear up for a long-haul financial restoration.
The rating reveals a major dip in general optimism concerning the world financial system since pre- and early-Covid-19 pandemic ranges final yr.
Nonetheless, investor optimism concerning the Center East & North Africa (MENA) area remained steady.
Optimism ranges relating to the financial outlook for the UAE scored larger in relative phrases than these documented final yr, inserting it among the many prime 5 nations when it comes to web optimism.
“The UAE’s hanging rise within the rankings once more this yr speaks to the facility of consistency and momentum. Particularly, the rating is probably going associated to its continued funding in superior technological infrastructure, excessive ranges of innovation, and to the depth and self-discipline of its response to the pandemic,” stated Rudolph Lohmeyer, Associate, Nationwide Transformations Institute, Kearney Center East.
“The UAE was among the many first nations to approve a Covid-19 vaccine, and it has launched into an especially formidable marketing campaign to vaccinate its complete inhabitants by the tip of 2021. Behind solely Israel and Seychelles, the UAE has vaccinated the very best portion of their inhabitants (per 100 folks), which could be anticipated to spice up financial and funding prospects additional.
“As well as, the UAE continued to interact past its borders this yr – with the signing of the Abraham Accords on September 15 — signalling the UAE’s dedication to regional stability and financial integration. Expo 2020, which was postponed to October 2021, ought to additional contribute to the resurgence in tourism, together with from Israel, within the latter a part of the yr,” he stated.
Paul Laudicina, founder and chairman emeritus of Kearney’s World Enterprise Coverage Council, stated a yr into the pandemic and its extreme disruption to the worldwide financial system, buyers understandably seem chastened.
In final yr’s survey, buyers displayed a powerful stage of optimism concerning the world financial system and their funding outlook, and lots of had been caught flat-footed by the Covid-19 disruption that introduced the world to an financial standstill.
Apart from, the autumn in confidence concerning the financial system, a lot of the general scores for the top-25 nations have fallen in contrast with earlier years.
Solely 57 per cent of buyers are optimistic concerning the three-year world financial outlook, which is far decrease than the corresponding determine final yr of 72 per cent (previous to and on the onset of the pandemic).
Solely three rising markets are on this yr’s Index: China, the UAE, and Brazil.
China stays the highest-ranked rising market, a distinction the nation has held constantly since 1999.
Nonetheless, concern over escalating US-China commerce tensions and a extra basic company rethink of worldwide provide chains may clarify its drop to twelfth place.
“Past these findings, the most important threat that worldwide buyers will proceed to face would be the pandemic itself,” Peterson added.
“Overcoming Covid-19 might be key to world financial restoration and the advance in FDI flows as the 2 go hand in hand. And financial development within the close to time period might be decided largely by the period of the worldwide pandemic, the effectiveness of fiscal and financial responses, and the success of vaccination efforts,” he added.