Abu Dhabi - Mubasher: The Gulf Cooperation Council (GCC) countries continue to attract strong interest from global investors, according to the 2025 Foreign Direct Investment Confidence Index (FDICI) issued by Kearney.

According to the results of the study, conducted in January 2025, the UAE continues to lead the region, achieving ninth place globally and second among emerging markets, reaffirming its leading position in the field of investment at the level of the Gulf Cooperation Council countries. Saudi Arabia follows closely behind, as it rose to thirteenth place globally, and retained third place among emerging markets. Meanwhile, Kuwait recorded its first presence in the emerging markets index, ranking eighteenth, indicating the growing interest of investors across the Gulf region, according to the Al-Khaleej website, on Thursday.

investment flows

Twenty-seven years after its launch, the FDI Confidence Index provides a future outlook for FDI flows by surveying global business leaders on the markets they are likely to focus their investment in over the next three years.

Investor interest in the region is based on strong data. The UAE's digital economy is expected to contribute more than 20% of GDP by 2031, thanks to ambitious national strategies, massive infrastructure projects such as the Etihad Rail project, and the expansion of data center capabilities.

In Saudi Arabia, foreign direct investment (FDI) inflows to the non-oil sector grew by 10.4% in 2023, while its $100 billion Project Transcendence, which focuses on artificial intelligence, aims to strengthen the Kingdom's position as a leading technological power in the region.

As for Kuwait, it witnessed a significant increase in foreign direct investment (FDI) inflows during 2023, doubling to more than $2 billion. This growth is attributed to targeted investment incentives, business facilitation, and ongoing efforts to achieve broader economic diversification within the framework of Vision 2035.

In-depth analysis

The 2025 Index provides in-depth analysis of investors' motivations when making investment decisions. For GCC countries, investment attractiveness is primarily attributed to their strong domestic economic performance, ease of doing business, technological innovation, and easy access to natural resources.

These investment incentives align with reform plans in the region, starting with the UAE's low-tax, technologically advanced business environment, the Kingdom's flexible investment laws and growing innovation system, and Kuwait's reforms, which enable foreign companies to operate without the need for a local sponsor in key vital sectors, including information and communications technology, healthcare, and renewable energy.

Global scene

In the broader global landscape, the UAE, Saudi Arabia, and Kuwait, along with China, are emerging markets that will lead the list of FDI destinations over the next three years.

“Amidst the current global political uncertainty and volatility, the GCC’s ability to maintain investor momentum is no coincidence; it is the result of strong visions, bold reforms, and a serious commitment to economic transformation,” said Rodolphe Lohmer, Senior Partner at the Global Business Policy Council, President of the National Transformation Institute, and a member of the Kearney Foresight Network.

He added: "Today, investors are not only looking for opportunities; they are also looking for an environment characterized by clarity and flexibility, which the Gulf region offers in spades."

trade tensions

Investor sentiment was monitored for the year before trade tensions escalated sharply in early April, but early indicators already pointed to rising investor concerns about global instability, with rising commodity prices and rising geopolitical tensions topping the list of expected developments.