Saudi Arabia climbs to 13th spot in Kearney's FDI Confidence Index
RIYADH: Saudi Arabia rose to 13th place in Kearney's 2025 Foreign Direct Investment Confidence Index, its highest-ever ranking, reflecting stronger investor sentiment amid ongoing economic reforms and diversification efforts.
The Kingdom advanced one spot from last year and retained its position as the third most attractive emerging market, signaling continued global confidence in its transformation strategy.
The annual index, released by consultancy Kearney, reflects insights from senior executives at the world's leading corporations about likely investment destinations over the next three years. The survey, conducted in January, provides a snapshot of investor sentiment amid a shifting global landscape.
This comes as Saudi Arabia's net foreign direct investment inflows surged by 37 percent in the third quarter of 2024 to SR16 billion ($4.26 billion), up from SR11.7 billion in the previous quarter, underscoring the Kingdom's growing appeal to international investors, according to the latest available data from the General Authority for Statistics.
Rudolph Lohmeyer, senior partner global business policy council and head of the National Transformations Institute, part of Kearney Foresight Network, said: 'Saudi Arabia's climb is no coincidence — it reflects the Kingdom's bold, reform-driven approach to building a globally competitive, future-ready economy.'
He added: 'Global investors are taking note of the clarity of vision, scale of ambition, and commitment to innovation that define the Saudi market today.'
The Kingdom's improvement comes at a time when global investors are prioritizing stable, high-performing markets with long-term growth potential. It also aligns with the newly enacted investment law that guarantees equal treatment for foreign and domestic investors, enhancing business confidence and ease of market entry.
FDI inflows into Saudi Arabia's non-oil sectors rose 10.4 percent in 2023, as global investors were drawn to the scale and pace of transformation under Vision 2030.
According to the survey, investors highlighted the Kingdom's strong domestic economic performance, abundant natural resources, and rapid technological innovation as key factors for choosing Saudi Arabia as an investment destination. These elements support its ongoing shift toward a diversified, innovation-led economy.
Erik Peterson, co-author of the report and managing director of Kearney's Global Business Policy Council, said: 'While the Middle East sees strong representation, developed markets dominate the global rankings, led by the US.'
'This speaks to a dynamic and evolving investment landscape, where investors are not only weighing opportunity but also navigating rising risks, including increasingly restrictive regulatory environments driven by a wave of industrial policy aimed at strengthening domestic resilience and national security,' he added.
Saudi Arabia's strong performance places it among the top emerging markets for investment, alongside the UAE and China.
Despite cautious sentiment in some markets, confidence in the Kingdom is on the rise, underscoring its growing role in global capital flows and its emergence as a model for high-growth, reform-oriented economies.
The report noted that investor sentiment was captured before the sharp escalation in global trade tensions in early April. Still, early indicators already pointed to rising concerns over geopolitical instability and commodity price pressures.
'Yet, amid uncertainty, investors continue to prioritize strong fundamentals when selecting markets — citing legal and regulatory efficiency, economic performance, and innovation as key drivers,' it added.
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