US Tops A T Kearney’s 2025 FDI Confidence Index Globally
- Business Companies Foreign Direct Investments World
Global Business Magazine- 5 minutes read
The US has been ranked first among the top 25 markets globally for the 13th year in a row, in the A T Kearney’s 2025 Foreign Direct Investment Confidence Index, followed by Canada, the UK, Japan and Germany.
Of the 25 countries, 19 are from the developed markets and the remaining six from Emerging Markets (EM), indicating that investors may be seeking perceived safety and stability in a volatile world, the index showed.
A plurality of investors (45%) cited the US market’s technological innovation as the strongest reason they would choose to invest there, followed by its economic performance (40%). The US consistently ranks in the top three economies in the World Intellectual Property Organisation’s Global Innovation Index, and is expected to remain the world’s fastest growing G7 economy, expanding at 2% this year.
Following the US is Canada is ranked second for the third consecutive year and remains one of the top five markets for the 13th year in a row for the quality of its infrastructure as the most attractive for investors.
Canada’s 12-year plan to invest $180 billion in infrastructure, extending through 2028, has focused on projects repairing and upgrading public transit systems and roads, enhancing digital infrastructure, and tackling affordable housing challenges.
Further, Canada continues to be a powerhouse in clean energy infrastructure, with investment in the area growing 19% in 2024 to reach $35 billion and landing Canada at 8th globally, BloombergNEF’s Energy Transition Investment Trends 2025 report said.
UAE Second in Emerging Markets
Only six emerging markets (Ems) make the main Index, down two from last year, as Poland and Argentina fell out of the top 25.
Overlap between the global rankings and the emerging market rankings include China at number one, followed by the UAE, Saudi Arabia, Brazil, India, and Mexico. South Africa, Poland, and Argentina lead the pack of emerging markets that fell just short of the main Index.
Overall, the Americas boasts the most markets on the list with eight (down one from last year), followed by Asia Pacific at seven, the Middle East and Africa at five, and Europe also at five (up one from last year). Two of the 25 emerging markets—Kuwait and Bulgaria—made the Index for the first time.
The UK and Germany lead in Europe, holding the 3rd and 5th places, respectively, benefitting from perceptions of tech innovation and economic performance. In Asia Pacific, Japan placed 4th on the Index, also benefitted from continued strength in technology innovation, and strong wage growth.
China slips from third to sixth place, likely reflecting the market’s economic challenges, including an ongoing property crisis and trade uncertainty.
Top Priority for Domestic Economy
Domestic economic performance emerges as a top priority for investors. Efficiency of legal and regulatory process and domestic economic performance tie for the top two most important factors for investors when choosing where to make their foreign direct investment.
The elevation of these issues suggests that investors are increasingly focused on economic indicators when choosing where to place their FDI, a fact further validated by the survey respondents specifically citing economic performance as the primary reason to invest in 12 of the top 25 markets.
