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Zawya
3 days ago
- Business
- Zawya
Kearney's ‘Nexus Point' report: 6 global forces of change converging in the Middle East through 2030
Dubai, UAE – Global consultancy Kearney has released its latest report, Nexus Point: The Middle East at the Center of Global Change, highlighting six global forces of change facing the region through 2030 – and how decisions in the region will shape the global trajectory of those forces. As geopolitical realignments, economic fragmentation, and climate shifts accelerate, the Middle East is leveraging bold diplomacy, disciplined economic policy, and technological innovation to emerge as a key architect of the world's future. The report outlines six key forces driving global change - geopolitical entropy, geoeconomic fragmentation, atomizing climate response, macroeconomic divergence, reweaving of the social fabric, and accelerated knowledge creation - and explores how the leading countries of the Middle East are both navigating and shaping these forces. 'The Middle East sits at the very center of this period of intensifying change - geographically and demographically, geopolitically and economically,' said Rudolph Lohmeyer, Senior Partner, Global Business Policy Council & Head of the National Transformations Institute, Part of the Kearney Foresight Network. 'Over the next five years, the global forces outlined in this report will increasingly converge on the region, positioning it at as a crucial nexus point of disruptive transformation. The region's leading countries have seen these forces coming - and they have relentlessly prepared. To the extent they succeed in navigating, harnessing, and capitalizing on these forces, not only will they accelerate their own transformations and that of the wider region, but they will also shape the global trajectory of these dynamics in the direction of order, stability, and inclusive progress.' The Middle East's growing global influence According to the report, the Middle East is evolving from a global crossroads into an active architect of change, leveraging its economic strength, strategic investments, and geopolitical influence to shape global markets and policy decisions. The region's economic transformation is accelerating through diversification strategies including Saudi Arabia's Vision 2030, the UAE's AI-led innovation agenda, and Egypt's infrastructure investments - efforts that are significantly expanding the region's global economic footprint. At the same time, the region's sovereign wealth funds are projected to grow from $4 trillion to $8 trillion by 2030, placing Middle Eastern economies among the world's most influential financial powerhouses. The region also holds a central position in global trade and energy, with nearly 12% of international trade and 20% of oil supply flowing through its corridors. And with over $75 billion committed to clean energy by 2030 and AI expected to contribute $320 billion to regional GDP, the Middle East is becoming a major force in digital innovation and sustainability. In addition, the leading countries of the region are driving bold diplomatic innovation to address critical global and regional challenges. This has included efforts to bring Iran and Syria into a new regional security architecture, the formation of regional coalitions to advance solutions to the ongoing crisis in Gaza and recently supporting efforts to broker a ceasefire between India and Pakistan. The global strategic centrality of the region was also on display during U.S. President Donald Trump's May 2025 tour of the area given not just the unprecedented economic and defense agreements reached, but also the deep collaboration on key global and regional diplomatic issues. The visit confirmed the increasingly pivotal role of the region in shaping the future of the international order. Shaping the Next Era of Global Stability The report emphasizes that decisions made in the Middle East between now and 2030 will have a profound impact on global geopolitical, economic, social and technological dynamics. In the context of the current historic critical juncture, the region's ability and intention to foster geopolitical stability, drive inclusive economic growth, fuel transformative innovation, and bridge international divides will be of decisive importance. The full report Nexus Point: The Middle East at the Center of Global Change is available for download here: Nexus Point: The Middle East at the Center of Global Change About Kearney Since 1926, Kearney has been a leading management consulting firm and trusted partner to three-quarters of the Fortune Global 500 and governments around the world. With a presence across more than 40 countries, our people make us who we are. We work impact first, tackling your toughest challenges with original thinking and a commitment to making change happen together. By your side, we deliver—value, results, impact. Impact First promo video:
Khaleej Times
10-04-2025
- Business
- Khaleej Times
UAE leads the GCC in global investor confidence, ranks ninth globally
The UAE continues to lead the region in attracting global investor interest, a report showed on Thursday. According to Kearney's 2025 Foreign Direct Investment Confidence Index, the UAE ranked ninth globally and second among emerging markets, reaffirming its status as the GCC's investment frontrunner. Saudi Arabia follows closely, climbing to 13th globally and retaining its third place among emerging markets. Kuwait also debuts on the Emerging Markets Index, ranking 18th — a sign of growing investor appetite across the Gulf. Investor interest in the region is backed by robust data. In the UAE, the digital economy is projected to contribute over 20% to GDP by 2031, supported by national strategies and major infrastructure projects such as Etihad Rail and the expansion of data centre capacity. FDI inflows into Saudi Arabia's non-oil economy rose by 10.4% in 2023, while its $100 billion AI-focused 'Project Transcendence' is positioning the Kingdom as a regional technology powerhouse. In Kuwait, FDI inflows more than doubled in 2023, reaching $2 billion, driven by targeted investment incentives, improvements in ease of doing business, and a broader push for diversification under Vision 2035. In a broader global context, the UAE, Saudi Arabia, and Kuwait stand out among emerging markets, alongside China, as top destinations for FDI over the upcoming three years. 'In a global climate marked by uncertainty and policy shifts, the GCC's ability to maintain investor momentum is no accident. It stems from consistent vision, bold reform, and a clear commitment to economic transformation. Investors today are looking not only for opportunity but for clarity and resilience. The Gulf delivers both,' commented Rudolph Lohmeyer, Senior Partner Global Business Policy Council & Head of the National Transformations Institute, Part of Kearney Foresight Network. Investor sentiment for the year was captured before the sharp escalation of trade tensions in early April, but early indications already pointed to heightened investor concern over global instability, with commodity price increases and rising geopolitical tensions topping the list of anticipated developments. Yet, amid uncertainty, investors continue to prioritize strong fundamentals when selecting markets - citing legal and regulatory efficiency, economic performance, and innovation as key drivers. 'While the Middle East sees strong representation, developed markets dominate the global rankings, led by the US,' added report co-author Erik R. Peterson, Partner and Managing Director of Kearney's Global Business Policy Council. '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.' Now in its 27th year, the FDICI provides a forward-looking view of FDI flows by surveying global business leaders on the markets they are most likely to invest in over the next three years. The Index captures a snapshot of investor sentiments amid a changing global environment. The GCC's strong performance reflects a long-term economic vision, consistent regulatory reforms, and targeted national visions to attract high-value investment across sectors. The 2025 Index also offers insights into investor rationale for investment decisions. For the GCC, the top reasons for investing in the region include strong domestic economic performance, ease of doing business, technological innovation, and access to natural resources. These drivers align with the region's reform agendas - from the UAE's tech-forward, low-tax business environment to Saudi Arabia's streamlined investment laws and growing innovation ecosystem, to Kuwait's reforms enabling foreign firms to operate without local sponsors in priority sectors such as Information and Communication Technology (ICT), healthcare, and renewables.
Arab News
10-04-2025
- Business
- Arab News
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.
