As a positive indicator of total optimism, The Emirates has been positioned as overall 15th globally and has also emerged as one amongst five nations within globally to upsurge in the position.
As per the Kearney’s 2021 Foreign Direct Investment (FDI) Confidence Index, that deals with the factors that are vital for the investors, UAE also ranked initial natively as well as 15th globally, up from 19th the preceding year.
The UAE is one of the only five nations globally that accomplished a huge ranking this year in a progressively viable global FDI desirability environment.
As per Rudolph Lohmeyer, Partner, National Transformations Institute, Kearney Middle East stated further that: “The UAE’s striking rise in the rankings again this year speaks to the power of consistency and momentum. Specifically, the score is likely related to its continued investment in advanced technological infrastructure, high levels of innovation, and to the intensity and discipline of its response to the pandemic.”
He also further stated out that: “The UAE was among the first countries to approve a Covid-19 vaccine, and it has embarked on an extremely ambitious campaign to vaccinate its whole population by the end of 2021. Behind only Israel and the Seychelles, the UAE has vaccinated the highest portion of their population (per 100 people), which can be expected to boost economic and investment prospects further.”
Although rankings disclose a significant plummeting in overall confidence about the global economy since pre- as well as the early-pandemic levels in 2020, confidence levels concerning the economic outlook for the UAE recorded higher in relative terms than those predictable the preceding year, placing it amongst the top five nations in terms of net confidence.
The UAE commercial atmosphere has revealed continuous fortes in factors vitally significant to investors, including government incentives for investors. The nation’s robust empowering atmosphere, featuring advanced technological infrastructure and high innovation levels, is also fundamental to its FDI appeal.
As according to the report from the global strategy and management consulting firm, the Investors directed they are more alert regarding FDI globally as they gear up for a long-haul fiscal recovery however, investor confidence about the Middle East & North Africa generally endured stable.
Lohmeyer further added that, ““In addition, the UAE continued to engage beyond its borders this year – with the signing of the Abraham Accords in August signalling the UAE’s commitment to regional stability and economic integration. Expo 2020, which was postponed to October 2021, should further contribute to the resurgence in tourism, including from Israel, in the latter part of the year.”
The founder of the index and Kearney’s Global Business Policy Council, Paul A. Laudicina, stated out that: “A year into the pandemic and its severe disruption to the global economy, investors understandably appear chastened.”
He also endured that “In last year’s survey, investors displayed a strong level of optimism about the global economy and their investment outlook, and many were caught flat-footed by the Covid-19 disruption that brought the world to an economic standstill.”
Laudicina added “Despite persistent macroeconomic challenges, investors continue to perceive FDI as vital to corporate profitability and competitiveness over the next three years. Even with investors’ increased caution this year, the FDI plunge in 2020 will likely not become a permanent feature of the global economy.”
This year’s standings specify sustained apprehension and uncertainty concerning how swiftly the global economy will improve post-Covid. In addition to the plummeting in assurance about the economy, most of the overall scores for the top 25 nations have tumbled compared with preceding years.
Only 57 percent of investors stated they are expectant about the three-year global economic outlook, which was much lesser than the conforming figure the preceding year of 72 percent (preceding to and at the commencement of the pandemic).
Depicting investors’ improved caution this year, advanced economies account for the lion’s share of the top-25 list for two primary reasons.
Erik Peterson, managing director of the Global Business Policy Council and co-author of the study: “First, established markets represent more safety and stability to business leaders whose strategies and bottom lines have been shaken by the pandemic.”
He as well as added out that “Second, investors continue to prioritize destinations with strong infrastructure, strong governance, investment in technology and innovation, and macroeconomic stability—natural strengths of most developed markets.”
China, the UAE, and Brazil are the stabilize three emerging markets on this year’s index. While China remains the highest-ranked emerging market, a difference the nation has hold consistently since 1999, apprehension over escalating US -China trade tensions and a more wide-ranging corporate rethink of global supply chains could explain its drop to twelfth place.
Peterson also further added that “Beyond these findings, the biggest risk that international investors will continue to face will be the pandemic itself,”.
He also added out that “Overcoming Covid-19 will be key to global economic recovery and the improvement in FDI flows as the two go hand in hand. Economic growth in the near term will be determined in large part by the duration of the global pandemic, the effectiveness of fiscal and monetary responses, and the success of vaccination efforts.”