While most of the world is navigating geopolitical headwinds and economic uncertainty, the UAE is moving in the opposite direction. According to Kearney’s 2026 Foreign Direct Investment Confidence Index, the UAE now holds the title of the world’s most optimistic economy for foreign investors, with a net optimism score of 42%.
That is not a small margin. Japan came in second at 41%, followed by Canada, Germany, and Thailand, all tied at 39%.
And if that was not enough, Saudi Arabia just broke into the global top 10 for the very first time.
What the Rankings Actually Look Like
The full global top five goes: United States, Canada, Japan, China, and Germany. The UAE sits at number nine overall, a position it has held for the third consecutive year.
Among emerging markets specifically, the UAE ranks second globally, right behind China and ahead of Saudi Arabia. Brazil and Mexico round out the top five in that category.
This consistency is not an accident.
Why the UAE Keeps Attracting Global Capital
Kearney’s report surveyed 507 senior executives from companies with annual revenues above $500 million. These are people who make real capital deployment decisions, and they keep pointing back to the UAE for a handful of clear reasons.
The country grew its economy by 5.5% in 2025. It launched a $10 billion national investment fund tied to its Investment Strategy 2031. Regulatory barriers for foreign investors have been steadily reduced. And the legislative environment has proven itself to be both stable and flexible, which is exactly what global capital wants right now.
Technology and infrastructure development have also been cited as key confidence drivers. In today’s investment climate, investors rank technological and innovation capabilities as the single most important factor when choosing where to put money, ahead of traditional considerations like regulatory efficiency or domestic economic performance.
The UAE has been building toward that reality for years.
Saudi Arabia’s Top 10 Debut Is a Big Deal
For the Kingdom, entering the global top 10 of the Kearney FDI Index is a milestone that reflects years of structural reform under Vision 2030. The goal is to attract $100 billion in FDI annually by 2030, and the trajectory is clearly working.
Amazon Web Services has committed $5.3 billion to expand data center infrastructure in Saudi Arabia. Google Cloud is building an AI hub in partnership with the country’s sovereign wealth fund. These are not small bets.
Together, the UAE and Saudi Arabia are reshaping how global investors think about the Gulf region. It is no longer just a wealth story. It is an innovation and infrastructure story.
The Bigger Takeaway for Investors
The 2026 Kearney report makes one thing very clear. Geopolitical risk is the top concern on investors’ minds globally, yet 88% of respondents still plan to increase their foreign direct investment over the next three years. Capital is not retreating. It is just becoming more selective.
And in that environment, the UAE’s combination of economic growth, regulatory openness, tech investment, and long-term strategic planning is exactly the profile that rises to the top.
If you are thinking about where global capital flows over the next decade, the Gulf is no longer a secondary consideration. It is a primary one.
Source: Arabian Business — UAE ranked world’s most optimistic economy for foreign investors as Saudi enters global top 10