Asia claimed the largest share of markets for the first time in 13 years in an annual ranking of countries by planned foreign direct investment (FDI).
The 2026 version of the Kearney FDI Confidence Index, based on a survey of more than 500 global business executives, had six countries from Asia in the top 11 markets, ranked by the likelihood of investment in the next three years.
Emerging market performance remains dynamic, according to the survey. “China, the United Arab Emirates, and Saudi Arabia lead the emerging market ranking for the third consecutive year,” the survey said. “Overall optimism toward emerging markets has modestly improved year over year.”
Technological and innovation capabilities emerged as the most important factor for investors when determining where to make foreign direct investments this year — ahead of efficiency of legal and regulatory processes and domestic economic performance.
The US ranked first on the list for the 14th year in a row, and Canada was second for the fourth consecutive year.
“While ease of doing business and economic fundamentals remain crucial, investor enthusiasm is increasingly centred on markets that demonstrate leadership in innovation and advanced technologies,” the survey found.
Additionally, industrial policy risks and opportunities are reshaping the investment landscape. Eighty-four per cent of investors said industrial policy is “extremely” or “very” important in FDI decision-making, and 57% believe that industrial policy has a positive impact on their company’s business performance.
In terms of risks, investors see a rise in geopolitical tensions as one of the most likely developments to occur over the next year, followed by commodity price increases and political instability in a developed market.
Developed markets accounted for 17 of the 25 spots on the 2026 index — two fewer than last year. Their share has dropped slightly as fragmentation reshapes global investment flows, the survey said.
After the US and Canada, the rest of the top ten were: Japan, China (including Hong Kong), Germany, the UK, France, Singapore, United Arab Emirates, and Saudi Arabia.
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