The 2023 Foreign Direct Investment Confidence Index, released by Kearney, has ranked Saudi Arabia 6th globally in Emerging Markets. This ranking aims to provide business leaders with insights into emerging markets that are most attractive to investors.
The report outlined that the rankings were fueled by the Kingdom’s robust rate of gross domestic product, strong fiscal outlook and accelerating progress in its economic diversification goals. It ranked Saudi Arabia third globally in investor confidence due to its strong and growing technological and innovation capabilities, a highly collaborative approach to public-private investment, the sustained fiscal windfall from solid oil revenue, and the recovery of the tourism sector following the major pandemic-induced disruption.
Rudolph Lohmeyer, Partner, National Transformations Institute, Kearney Middle East, highlighted in a press note that Saudi Arabia is witnessing the emergence of a new investment paradigm that features the co-creation of value and mutual skin in the game, a long-term strategic orientation concerning investment, and a pervasive commitment to innovation in all areas.
According to the report, Saudi Arabia grew by 8.7% in 2022 and ranked 24th on the FDI Index, while the UAE ranked 18th and Qatar ranked 21. Moreover, UAE’s GDP expanded by 7.9% in 2022. This shows that the UAE business environment is very good. And the country’s rising technical and innovation skills stand out as crucial advantages to investors.
