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Written by
Ishita Baid
UAE Ranks 2nd in FDI Confidence, Signs UAE–Russia Trade Deal to Boost Global Investment
Updated: Aug 18, 2025, 10:48 AM
The UAE’s strong standing in both foreign investment confidence amongst other emerging markets and UAE investor sentiment underscores its position as a global business hub.
Ranked 2nd in the 2025 FDI Confidence Index for emerging markets, the UAE trails only China, signaling sustained global trust in its economic stability, pro-business reforms, and strategic location.
The rise of UAE FDI Confidence ranking to 2nd globally and trailing only the US, with a net score of 42, reflects positive investor sentiment driven by robust GDP growth, diversified economic initiatives, and consistent policy stability.
Together, these rankings highlight the UAE’s ability to attract high-quality capital, retain investor confidence, and remain a preferred destination for both regional and international businesses cementing its role as a gateway for global trade, innovation, and long-term investment growth.
In the 2025 Kearney FDI Confidence Index, investors cite ease of doing business (32%), economic performance (38%), and tech innovation (31%) as the top reasons for investing in the UAE, demonstrating its success in combining business-friendly policies with a forward-looking growth model.
The UAE’s investment appeal is driven by a balanced mix of structural strengths that align with investor priorities such as Transparent governance (23%) and infrastructure quality (19%), further reinforcing the UAE’s reputation as a secure, well-connected, and efficiently regulated market.
This diverse set of strengths positions the UAE not only as a gateway to the wider Middle East, Africa, and South Asia region but also as a future-ready economy attracting both traditional industries and emerging sectors such as UAE fintech investment, renewable energy, and advanced manufacturing.
Furthermore, the UAE and Russia have signed a Trade in Services and Investment Agreement (TISIA) aimed at doubling bilateral trade within five years, focusing on sectors like fintech, healthcare, logistics, and professional services. This move, part of a broader UAE-EAEU economic partnership, reflects the UAE’s strategic intent to diversify its global trade relationships, attract foreign investment, and strengthen its position as a commercial, innovation, and global trade hub.
By deepening ties with Russia and the Eurasian bloc, the UAE enhances its economic resilience and global influence, aligning with its long-term vision for sustainable growth and strategic diplomacy.
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