UAE is Top rising market in Middle East and North Africa

UAE ranks first regionally

According to Kearney’s 2023 Foreign Direct Investment Confidence Index, the UAE is the top rising market in the Middle East and North Africa and third overall, behind China and India (FDICI).

According to the ranking, the fourth-ranked economy in the Middle East is Qatar, followed by Saudi Arabia in sixth place, Egypt in fourteenth place, Turkey in fifteenth place, and Morocco in sixteenth.

To give business executives insights into emerging economies that are most enticing to investors, an exclusive ranking for emerging markets has been introduced for the first time in the index’s 25-year existence, according to Kearney.

According to Rudolph Lohmeyer, partner at national transformations institute, Kearney Middle East, “The UAE continues to be an exceptionally attractive destination for investors, particularly in light of the launch of the Dubai Economic Agenda (D33) — a $8.7 trillion economic plan to boost trade, investment, and promote its status as a global hub.

The D33 strategy, which was introduced in January, includes a program to assist 30 private enterprises in becoming unicorns, or businesses worth more than $1 billion, with the goal of propelling Dubai into the top 10 most economically powerful cities in the world within the next ten years. The goal is to place the emirate among the top three world cities.

The UAE, the second-largest economy in the Arab world, is predicted to have expanded by 7.6% last year, the most in 11 years, after doing so by 3.9% in 2021, according to the UAE Central Bank.

The banking regulator has maintained its growth projection of 3.9% growth for the current year and anticipates that the nation’s GDP would expand by 4.3% the following year.

A record Dh2.23 trillion ($607.1 billion) in non-oil exports were made by the UAE last year as the country hurriedly implemented policies to lessen its reliance on hydrocarbons and expand its international economic alliances.

According to Mr. Lohmeyer, “it is evident that the government is steadfastly dedicated to diversifying the UAE economy and enhancing the business environment.”

The government remains relentlessly committed to diversifying the UAE’s economy and strengthening the UAE’s business environment

Rudolph Lohmeyer, partner at national transformations institute, Kearney Middle East

It is astounding how disciplined they have been in advancing the nation’s and the economy’s future preparedness. Although the global energy transition takes place in different ways and at different rates, funding for this continuing change will continue to profit from the demand for hydrocarbons.

Kearney’s index is a yearly survey of international business executives that ranks the markets most likely to draw investment during the following three years.

Executive-level managers and all participating businesses from 30 countries with yearly revenue of $500 million or more were included in the respondents.

The UAE is ranked 18th in the overall index, while Qatar and Saudi Arabia are ranked 21st and 24th, respectively. The US, Canada, Japan, Germany, and the UK are at the top.

In the overall index, developed markets occupy 19 of the top 25 positions.

According to the report, Saudi Arabia’s performance was boosted by its economy’s 8.7% annual growth rate, “sweeping pro-business reforms, robust budgetary outlook, and accelerated progress in economic diversification.”

According to Kearney, the successful World Cup hosting last year increased investors’ interest in Qatar, whose economy expanded by 4.1% last year as opposed to 1.5% in 2021.

The research emphasized the cautious optimism of investors towards the world economy.

In the next three years, more than 75% of respondents indicated they planned to increase their foreign direct investment (FDI), and 86% said FDI was increasingly critical to their companies’ profitability and competitiveness. This optimism, though, was muted by worry about the downside danger.

Co-author of the report and partner at Kearney’s global business policy council Erik Peterson remarked, “Our results this year suggest a degree of caution.”

“Investors listed increased political instability in emerging nations, rising geopolitical tensions, and rising commodity prices as among the main risk factors over the next three years.”

Business leaders believe that globalization is and will continue to be the driving force behind FDI, according to the index. In the next three years, almost 66% of respondents predict a rise in globalization, while only 23% predict a drop.

Publish Date: March 31, 2023,

Source: https://www.thenationalnews.com/business/economy/2023/03/31/uae-ranks-first-regionally-and-third-globally-in-kearneys-emerging-markets-index

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