GCC countries continue to attract strong global investor interest, according to Kearney’s 2025 Foreign Direct Investment Confidence Index (FDICI). 

 

According to the survey, fielded in January 2025, the UAE continues to lead the region, ranking 9th globally and 2nd among emerging markets, reaffirming its status as the GCC’s investment frontrunner. 

 

Saudi Arabia follows closely, climbing to 13th globally and retaining its 3rd place among emerging markets. Kuwait also debuts on the Emerging Markets Index, ranking 18th - a sign of growing investor appetite across the Gulf.

 

Now in its 27th year, the FDICI provides a forward-looking view of FDI flows by surveying global business leaders on the markets they are most likely to invest in over the next three years. 

 

The Index captures a snapshot of investor sentiments amid a changing global environment. The GCC’s strong performance reflects a long-term economic vision, consistent regulatory reforms, and targeted national visions to attract high-value investment across sectors.

 

According to Kearney, the investor interest in the region is backed by robust data. 

 

In the UAE, the digital economy is projected to contribute over 20% to GDP by 2031, supported by national strategies and major infrastructure projects such as Etihad Rail and the expansion of data centre capacity. 

 

FDI inflows into Saudi Arabia’s non-oil economy rose by 10.4% in 2023, while its $100 billion AI-focused “Project Transcendence” is positioning the Kingdom as a regional technology powerhouse. 

In Kuwait, FDI inflows more than doubled in 2023, reaching $2 billion, driven by targeted investment incentives, improvements in ease of doing business, and a broader push for diversification under Vision 2035.

 

The 2025 Index also offers insights into investor rationale for investment decisions. For the GCC, the top reasons for investing in the region include strong domestic economic performance, ease of doing business, technological innovation, and access to natural resources. 

 

These drivers align with the region’s reform agendas - from the UAE’s tech-forward, low-tax business environment to Saudi Arabia’s streamlined investment laws and growing innovation ecosystem, to Kuwait’s reforms enabling foreign firms to operate without local sponsors in priority sectors such as Information and Communication Technology (ICT), healthcare, and renewables.

 

In a broader global context, the UAE, Saudi Arabia, and Kuwait stand out among emerging markets, alongside China, as top destinations for FDI over the upcoming three years, it added.

 

"In a global climate marked by uncertainty and policy shifts, the GCC’s ability to maintain investor momentum is no accident," remarked Rudolph Lohmeyer, Senior Partner Global Business Policy Council & Head of the National Transformations Institute, Part of Kearney Foresight Network.

 

"It stems from consistent vision, bold reform, and a clear commitment to economic transformation. Investors today are looking not only for opportunity but for clarity and resilience. The Gulf delivers both," he added.

 

Investor sentiment for the year was captured before the sharp escalation of trade tensions in early April, but early indications already pointed to heightened investor concern over global instability, with commodity price increases and rising geopolitical tensions topping the list of anticipated developments. 

 

Yet, amid uncertainty, investors continue to prioritize strong fundamentals when selecting markets - citing legal and regulatory efficiency, economic performance, and innovation as key drivers.

 

"While the Middle East sees strong representation, developed markets dominate the global rankings, led by the US," stated report co-author Erik R. Peterson, Partner and Managing Director of Kearney’s Global Business Policy Council. 

 

"This speaks to a dynamic and evolving investment landscape, where investors are not only weighing opportunity but also navigating rising risks, including increasingly restrictive regulatory environments driven by a wave of industrial policy aimed at strengthening domestic resilience and national security," he added.-TradeArabia News Service