2022 has been a monumental year for UAE and for more reasons than one. UAE has improved impressively when it comes to its economy and property market. It has emerged to be a leading country for investors in 2022, 2023 and 2024 and is expected to simply improve the statistics. Ranking first in the Middle East in the emerging market segment as per the 2023 Foreign Direct Investment Confidence Index as per Kearney, UAE is the new hub and is expected to exponentially expand in 2023 and 2024. The ranking is essentially provided to businesses for them to identify the leading market segment that is appealing to investors. 

Ranking first regionally, and third globally after China and India, UAE has shown impressive growth over the last year and has an attractive business environment coupled with technological capabilities, this middle eastern innovation hub is acing the market segment. In 2022, UAE saw a 7.9 percent hike in GDP when the rest of the world was recovering after the covid aftermath. 2023 and 2024 are expected to be the boom season for UAE as well, as experts expect a 3.2 percent and 4.8 percent hike accordingly in these two years. 

As per Rudolph Lohmeyer, Kearney’s Middle East partner in the national transformation institute, “The UAE remains an exceptionally attractive destination for investors, particularly in light of the launch of the Dubai Economic Agenda (D33) – an $8.7 trillion economic plan to boost trade, and investment, and promote its status as a global hub. It is clear that the government remains relentlessly committed to diversifying the UAE’s economy and strengthening the UAE’s business environment.”

Lohmeyer further added, “Their disciplined approach to driving the future-readiness of the economy and the country is stunning. Funding this ongoing transformation will continue to benefit from hydrocarbon demand as the energy transition unfolds in various ways and at various speeds around the world.”

FDICI Rankings for UAE

MENA Rankings

As per the FDICI Mena Rankings, UAE has acquired the 18th position followed by Qatar which secured rank 21 and Saudi Arabia boasting of rank 24. The 8.7 percent growth in GDP in 2022 swept pro-business reforms, providing a strong fiscal outlook and accelerating UAE’s progress towards an economically diverse market. Qatar stepped up by three ranks in 2022 with a 4.1 percent growth in GDP. All of this has had a heavy influence on the investors and this has enabled a lot of them to contribute and invest in the UAE. They also added that the investor sentiment is growing in multiple Middle East countries including Egypt, Turkey, and Morocco which were positioned at 14th, 15th, and 16th ranks

Global Rankings

Almost 38 percent of the investors are inching to increase their foreign direct investment in the next three years, which is a highly optimistic approach toward the global economy. As per Erik R. Peterson, who is the Partner and managing director at Kearney’s Global Business Policy Council, “While investors are generally optimistic about the outlook for FDI, our results this year also reflect a degree of caution.” He further added, “Investors cited a rise in commodity prices, an increase in geopolitical tensions, and rising political instability in emerging markets as among the top risk factors over the next three years.”

FDI is important for corporate profitability and market competitiveness and thus the developed markets of leading companies remain the destination where investors put most of their investments. Almost 19 out of 25 countries in the Index are developed markets for foreign investors. Leaders and market analysts see FDI as a force behind globalisation that is going to increase and improve in the next three years. To support this, digital infrastructure, and trading opportunities also play a vital role in the growing market. 

As per Terry Toland, the manager at Global Business Policy Control, “While our findings show investors believe in the benefits of globalization and expect it to strengthen, they also anticipate more regionalization over the next three years and that national governments will pursue strategies to increase self-sufficiency.”

When it comes to foreign investment, investors need to take note of various factors in a developing country. An improved GDP evidence per year and a hike in proper market investments are telltale signs to investors that the country is a fertile land for investments. UAE is leading in the market and for all the right reasons. If you are looking for a real estate agency that can help you explore amazing opportunities in UAE, you can check out RGEstate.  

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