UAE Leads in Investor Sentiment for 2026

The United Arab Emirates has emerged as a standout performer in global investment landscapes, securing the ninth position in the latest assessment of foreign direct investment attractiveness. This ranking reflects sustained confidence from international executives despite broader geopolitical uncertainties. The country's appeal stems from consistent economic performance, strategic reforms, and a forward-looking approach to diversification beyond traditional sectors.

Executives surveyed highlighted the UAE's robust fundamentals as a primary driver. Economic growth projections remain strong, with non-oil activities providing a solid buffer against external fluctuations. This positioning allows the nation to maintain momentum even as global conditions evolve.

Key Metrics from the 2026 Assessment

In the annual survey conducted by Kearney, the UAE achieved the highest net optimism score among all markets evaluated. This metric, calculated as the percentage of optimistic responses minus pessimistic ones regarding economic and investment prospects over the next three years, reached 42 percent. It surpassed Japan at 41 percent and tied or exceeded several other leading economies at 39 percent.

The overall global ranking placed the United States, Canada, and Japan at the top three spots. Among emerging markets, the UAE held second place for the third straight year, following China and preceding Saudi Arabia. Saudi Arabia's entry into the global top 10 at tenth position marked a notable milestone for the region.

These results underscore a pattern of steady improvement in investor perceptions. The survey drew responses from 507 senior executives at major corporations worldwide, focusing on planned investment decisions in the coming three years.

Drivers of UAE's Strong Performance

Economic performance stands out as the leading factor cited by investors for the UAE, accounting for approximately 30 percent of responses. This encompasses sustained output expansion, with estimates pointing to 5.5 percent growth in 2025 according to independent projections. Non-oil sectors have played a pivotal role, contributing to broad-based expansion through services, technology, and infrastructure development.

Policy initiatives further bolster attractiveness. The launch of a substantial national investment fund supports the implementation of long-term strategies aimed at enhancing the business environment. Measures include incentives for foreign capital, streamlined regulations, and expanded opportunities in priority areas such as renewable energy, manufacturing, and advanced technologies.

Free zones and updated ownership rules have facilitated easier market entry for international firms. These changes align with broader efforts to position the country as a global hub for trade, finance, and innovation.

Regional Context and Comparisons

Within the Middle East and North Africa, the UAE and Saudi Arabia represent the primary globally ranked destinations in the assessment. Both benefit from ongoing diversification efforts that reduce reliance on hydrocarbon revenues while building capabilities in emerging industries.

Neighboring economies show varying trajectories. Gains in markets like Thailand and Malaysia illustrate supply chain adjustments by multinational companies seeking alternatives amid shifting global dynamics. The UAE's consistent top-tier placement highlights its competitive edge in stability, connectivity, and regulatory predictability.

Comparisons with established leaders reveal the UAE's ability to punch above its weight. Its combination of strategic location, modern infrastructure, and proactive government engagement continues to differentiate it from peers.

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Impact on Broader Economic Landscape

High investor confidence translates into tangible benefits for the domestic economy. Increased foreign capital supports job creation, technology transfer, and sector expansion. Non-oil GDP growth has remained resilient, driven by population inflows, domestic consumption, and large-scale projects in logistics and digital services.

The outlook for 2026 anticipates continued expansion around the 5 percent mark, maintaining above-average performance relative to many global counterparts. This trajectory supports fiscal balance and positions the country for sustained development under national vision frameworks.

Stakeholders across government and private sectors emphasize the role of partnerships in amplifying these gains. Comprehensive economic agreements with multiple nations enhance trade flows and open new avenues for collaboration.

Challenges and Resilience Factors

Geopolitical tensions in the region present potential short-term headwinds for investment flows. However, strong underlying fundamentals, including advanced infrastructure and technological assets, provide a buffer against prolonged disruptions.

Investors note the importance of ongoing reforms to maintain momentum. Continued focus on reducing bureaucratic hurdles and offering targeted incentives helps mitigate risks associated with external events.

The country's track record of adapting to global shifts demonstrates resilience. Previous periods of volatility have been met with policy responses that reinforce long-term appeal.

Future Outlook and Strategic Priorities

Looking ahead, the UAE is expected to build on its current strengths through targeted investments in sustainability, artificial intelligence, and advanced manufacturing. National strategies emphasize talent attraction and retention, with visa programs designed to draw skilled professionals and entrepreneurs.

Projections indicate steady inflows as large infrastructure initiatives and digital transformation projects mature. The emphasis on green initiatives and innovation aligns with global trends, potentially attracting additional capital from environmentally focused investors.

Overall sentiment remains constructive, with executives expressing optimism about the market's trajectory over the medium term. This positions the UAE favorably for continued leadership in regional and global investment rankings.

Implications for International Businesses

For companies considering expansion, the UAE offers a stable platform with access to key markets across Asia, Africa, and Europe. Its logistics capabilities and business-friendly ecosystem facilitate efficient operations.

Executives highlight the value of established free zones and supportive regulatory frameworks in accelerating setup and scaling. These elements reduce entry barriers and support long-term commitments.

Partnership opportunities abound in priority sectors, enabling foreign firms to leverage local expertise while contributing to economic diversification goals.

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Stakeholder Perspectives on Sustained Growth

Government officials and business leaders alike point to the interplay between policy stability and market responsiveness as central to recent successes. Regular engagement with international investors informs adjustments that keep the environment competitive.

Industry analysts note the positive feedback loop created by strong performance metrics. High rankings reinforce confidence, attracting further interest and enabling larger-scale projects.

The collective view emphasizes measured optimism grounded in verifiable progress rather than speculation. This approach has helped maintain credibility among global decision-makers.

Actionable Insights for Investors

Businesses evaluating opportunities should monitor developments in key sectors such as technology, renewables, and logistics. Engagement with local authorities and participation in strategic forums can provide deeper insights into emerging priorities.

Due diligence on regulatory updates and incentive programs remains essential. The evolving landscape rewards proactive approaches to partnership and compliance.

Long-term planning benefits from alignment with national objectives, including sustainability targets and innovation hubs. Such alignment often unlocks additional support and synergies.