UAE Economic Optimism Leads Emerging Markets as Kearney Places Country Ninth in 2026 FDI Confidence
UAE tops global economic optimism and ranks ninth in Kearney’s 2026 FDI Confidence Index, driven by reforms, a $10bn fund, 5.5% 2025 growth and investor sentiment.
The United Arab Emirates has emerged as the global frontrunner for economic optimism among emerging markets, reinforcing UAE economic optimism as a central theme in international capital allocation. Investors cited strong macroeconomic performance, strategic policy incentives and a newly established $10 billion national investment fund as key drivers of confidence. The country also secured a top-ten position—ninth globally—in Kearney’s 2026 Foreign Direct Investment (FDI) Confidence Index, underscoring sustained foreign interest. Market data and investor surveys point to a relocation of capital toward what are being called “middle powers” that combine stability with growth potential.
UAE Tops Global Economic Optimism Rankings
The UAE recorded the highest net economic optimism among emerging markets, with a net optimism figure of 42% for the next three years. This level of optimism places the country ahead of peers despite heightened geopolitical tensions in the region. The sentiment measure reflects investor expectations for revenue growth, project pipelines and returns on new capital deployed in the Emirates.
Kearney Places UAE Ninth in Global FDI Confidence
In the 2026 Kearney FDI Confidence Index, the UAE climbed into the top ten and was listed ninth worldwide. The ranking builds on the country’s third consecutive strong showing in emerging market indices, where it stood directly behind China in broader emerging market assessments. Analysts say the Kearney placement signals international investors’ readiness to consider the UAE for major project investment and corporate expansion.
Investor Priorities Highlight Economic Performance and Policy
Survey responses cited economic performance as the single most influential factor, chosen by 30% of respondents as the main reason to invest in the Emirates. Other priorities included ease of doing business (28%), infrastructure quality (27%), technological innovation (25%) and access to natural resources (24%). Together these factors outline a diversified value proposition that appeals to a range of global investors, from manufacturing and logistics to technology and energy.
Industrial Policies and Incentives Shape Decisions
A striking 84% of surveyed investors rated industrial policies—covering incentives, support measures and infrastructure development—as either “very important” or “extremely important” for FDI decisions. That consensus reflects the perceived impact of targeted government interventions on project viability and long-term returns. Policymakers in the UAE have emphasized regulatory streamlining and sector-specific incentives as part of a strategy to attract higher-value investment.
$10 Billion Fund and the National Investment Strategy 2031
In November 2025 the UAE launched a $10 billion national investment fund to support the implementation of the National Investment Strategy 2031. Officials designed the fund to unlock co-investment, de-risk strategic projects and accelerate private-sector participation in priority sectors. The fund’s creation has been widely cited by investors as a tangible commitment from the state to catalyze longer-term capital flows and enhance project pipelines across industry clusters.
Economic Performance: 5.5% Production Growth in 2025
Economic momentum underpins the optimism: projections from Oxford Economics cited in investor briefings point to a 5.5% increase in production for 2025. That growth rate helped cement the UAE’s appeal at a time when global capital is reassessing risk and return across regions. Market participants say growth paired with structural reforms strengthens the case for both greenfield projects and acquisitions in the Emirates.
Geopolitical Risks and Resilience of Investment Flows
Despite regional volatility, investor sentiment toward the UAE has remained resilient, driven in part by its diversified economy and deep connectivity. Risk assessments show that while geopolitical concerns have risen, the country’s policy responsiveness and infrastructure have helped mitigate perceived threats. Firms conducting due diligence continue to weigh regional risks against the higher returns and stability offered by established commercial hubs in the UAE.
The combination of robust economic performance, targeted policy incentives and a substantial sovereign-backed investment vehicle has created a compelling narrative for foreign investors. As global capital rotates toward markets offering both growth and operational predictability, the UAE’s top ranking in economic optimism and its position in the Kearney index signal a notable shift in investment patterns. Evidence from investor surveys indicates that policymakers’ emphasis on ease of doing business, infrastructure and technology innovation is translating into measurable confidence, supporting a sustained inflow of foreign direct investment.
