The UAE has emerged as the world’s top performer in foreign direct investment (FDI) relative to the size of its economy, according to fDi Intelligence’s Greenfield FDI Performance Index 2023. The UAE, which saw a significant increase in FDI projects, overtook Costa Rica, which had held the top spot for the previous three years.
In 2023, the UAE’s surge in FDI was most notable in sectors such as business services, tech, real estate, and industrial equipment. The country’s FDI performance index score was the highest among the 108 countries assessed, reflecting its ability to attract more FDI than its economic size would suggest.
Montenegro also made a strong entry into the index, ranking second, followed by Costa Rica. The top 10 list included several smaller and emerging markets, highlighting their growing ability to attract FDI.
Despite the UAE’s success, other notable shifts included China and Russia’s poor performance, with both countries ranking at the bottom due to declining FDI amid economic challenges and geopolitical tensions. Meanwhile, the US, despite attracting the most FDI projects globally, ranked 100th due to its large GDP relative to its FDI share.
Overall, 56 of the 108 countries saw an improvement in their FDI performance, with Uzbekistan making the biggest leap, moving up 69 places to rank 13th. The report underscores the dynamic landscape of global FDI, with emerging markets increasingly becoming key players.
