UAE ranked 14th globally in A.T. Kearney’s 2013 FDI Confidence Index

A.T. Kearney issued its 2013 FDI Confidence Index in which the UAE took the 14th position out of 25 countries globally. The country’s ranking advanced by one notch from the 2012 survey but remains three notches lower than that seen in the 2011 survey. It is worth noting that the UAE is the only country within the MENA geography to have been included in the top 25 ranking.

The FDI confidence index, in its 13th edition since 1998, ranks countries based on how political, economic and regulatory changes will affect FDI inflows. Based on a survey of more than 300 executives, A.T. Kearney examines where global investments are likely to be headed.

A look at A.T. Kearney’s opinion of the Middle East and Africa shows that downward pressures on FDI inflows were not surprising due to the volatility in Bahrain, Egypt, Syria and Yemen as well as the ongoing issues between Iran and the world’s big powers.

Flows to the Gulf region have also suffered from the post-crisis cancellation of large scale investment projects. Yet, pockets of strength were still seen in the UAE. Indeed, the country boasts significant assets lying in logistics, tourism and hospitality. Its well developed infrastructure, strategic location and tax-free base offer investors easy access to fast-growing African and Middle East markets. FDI could rise in the coming years as the country eases foreign ownership laws. As a matter of fact, a long-anticipated law allowing foreigners to own more than 49% of businesses in certain sectors outside of designated free zones is awaiting cabinet approval.

Published in MWM Mena Weekly Monitor, Week 28.