2026 FDI Confidence Index Highlights Asia's Dominance and Innovation

Kearney Survey Reveals Shifting Investor Priorities Amid Global Uncertainty

WASHINGTON, April 9, 2026 /PRNewswire/ -- An evolving global landscape marked by industrial policies and technological advancements is shaping investor decisions, according to the 2026 Foreign Direct Investment Confidence Index (FDICI) released by Kearney's Global Business Policy Council. This annual survey highlights the markets poised to attract the most foreign direct investment (FDI) over the next three years, reflecting the current global investment climate.

January's survey, which included inputs from over 500 top executives of multinational corporations, underscores a commitment to international ventures despite geopolitical tensions, particularly in the Middle East. Notably, 88 percent of participants intend to boost their foreign direct investments, indicating robust confidence in global economic prospects.

"Investors still believe in the value of FDI, but they are recalibrating how they make their decisions in a more turbulent operating environment," remarked Erik R. Peterson, partner and managing director of Kearney's Global Business Policy Council.

Technological Prowess as a Draw for Investors

Innovation now trumps traditional factors like regulatory frameworks in influencing investment flows. With technology ecosystems becoming pivotal, the United States remains the foremost choice for foreign investors, largely due to its tech leadership. However, optimism about its economic outlook has waned slightly.

Canada, maintaining its second-place ranking, is lauded for its resources and tech potential. Meanwhile, Asia's influence is expanding, with Japan and China securing third and fourth places respectively. This marks a milestone as Asia claims the largest proportion of ranked markets in over ten years.

Emerging Markets Gain Attention

Emerging markets such as China, the United Arab Emirates, and Saudi Arabia continue to lead in attractiveness, according to the Emerging Markets Index. Markets like Thailand and Malaysia are benefiting from a diversified supply chain, reflecting an increasing convergence between global and emerging investment interests.

Investor confidence in these regions is rising, particularly for the UAE and Thailand, as companies diversify their investment portfolios beyond traditional hubs.

Influence of Geopolitical Challenges and Industrial Policies

The survey highlights a cautious approach by executives towards geopolitical uncertainties and commodity market fluctuations. Simultaneously, industrial policies are becoming crucial in directing investment, with 84 percent of investors citing them as significant.

Investors especially value infrastructure investments and tax incentives as effective policy measures, though they view tariffs less favorably.

"Industrial policy is reshaping the global investment landscape and fast becoming a key factor in FDI decision-making," noted Terry Toland, principal at Kearney’s Global Business Policy Council.

Understanding the FDICI's Methodology

The 2026 Kearney FDI Confidence Index^® is based on a survey of 507 senior executives from leading global firms, conducted in January 2026. It captures the likelihood of investments in various markets over the next three years, excluding inputs from companies headquartered in the respective countries.

For further insights, explore past editions at www.kearney.com/foreign-direct-investment-confidence-index.

Media inquiries can be directed to Meir Kahtan at Meir Kahtan Public Relations, LLC: +1 917-864-0800 or [email protected].