With ongoing geopolitical tensions and economic uncertainty in many countries and regions of the world, it is important for investors to carefully consider where and in which countries they place their capital.
Global foreign direct investment (FDI) is set to fall 2% to $1.3 trillion in 2023 amid an economic slowdown and rising geopolitical tensions, according to the World Investment Report 2024, released by the United Nations Conference on Trade and Development (UNCTAD).
However, inflation has eased this year, global supply chains are returning to normal, and major stock indices are once again approaching record highs as signs of liquidity return.
The best places to invest in 2024 have a few things in common: Most of the leading investment destinations enjoy geopolitical security with minimal risk of conflict.
Countries like Singapore and Indonesia are located far from potential conflict zones, providing stability amid global turmoil, according to InvestASEAN.
Asia advances, Europe declines
Foreign direct investment rose last year in Asian countries such as Indonesia, China, Malaysia and the Philippines, but fell in the European Union by 4%, the first annual decline since 2020, according to the European Attractiveness Study conducted by Ernst & Young this year.
The European Union is the world’s third largest economy after China and the United States, and has a diversified industrial base, strong infrastructure, some of the world’s leading academic and research institutions, as well as a highly educated and skilled workforce.
However, more data shows that Europe needs to rethink the way it stimulates economic growth and attracts foreign direct investment; Europe’s share of global manufacturing output fell from 21% to less than 15% between 2001 and 2021.
Recently, UNCTAD estimated that the value of foreign direct investment in Europe fell by 20% in 2023, while in the same period, investment increased by 2% in the United States, 8% in China, and 17% across Asia.
In this report, we review the top 10 countries for investment worldwide, according to OAC World magazine, taking into account a number of factors, each of which carries a significant weight in determining the attractiveness of the country in general.
These factors include levels of corruption, personal, commercial and monetary freedom, quality of the workforce, investor protection measures, infrastructure development, tax policies, quality of life indicators, bureaucratic efficiency, and technological readiness, according to the same source.
This list shows the progress of Asian countries and the decline of European Union countries, as well as the absence of Arab countries from the top ten places, as the UAE comes in 15th place globally, followed by the Sultanate of Oman in 21st place globally, Bahrain in 43rd place, and Saudi Arabia in 54th place. It is also noted that Israel has declined to 25th place due to its ongoing aggression on the Palestinian territories, and the flight of investments and capital from it.
Top 10 Countries to Invest in the World in 2024
10 – United States of America
The United States of America ranks tenth on this list, confirming its position as the world’s largest economy and a leader in innovation and entrepreneurship, thanks to its diverse business environment, abundant capital, talent, and culture of innovation. The United States offers strong growth and profit opportunities for investors, and remains a leading investment destination in the technology, healthcare, finance, and manufacturing sectors.
Strong legal and regulatory frameworks provide businesses with a secure environment for long-term growth.
9- Philippines
The Philippines’ ninth-place ranking highlights its potential as a major player in Southeast Asia. With a young population, strategic location and growing consumer market, the country offers significant opportunities for investors.
Strong infrastructure, an improving business environment, and government initiatives to promote investment and entrepreneurship also make the Philippines an attractive destination.
Moreover, its expertise in business development outsourcing, tourism and agriculture enhances its attractiveness to those seeking to invest in emerging markets.
8- Poland
Poland’s ranking of 8th highlights its emergence as a dynamic and fast-growing economy in Central and Eastern Europe. Thanks to its strategic location and business-friendly environment, Poland attracts significant foreign investment, and its strong infrastructure, skilled and trained workforce, and supportive government policies make it an ideal hub for manufacturing, services, and innovation.
In addition, Poland’s integration into the European Union provides companies with access to a vast and thriving market, enhancing its attractiveness to investors.
7- Australia
Australia’s ranking of 7th confirms its reputation as a country with a stable and prosperous economy, abundant natural resources and a flexible business environment. Strong institutions, sound economic policies and a skilled workforce provide investors with a safe and transparent business environment.
Proximity to fast-growing Asian markets, expertise in mining, agriculture and advanced manufacturing make Australia an attractive destination for investment in a variety of industries.
6- Spain
Spain is the gateway to Europe, a hub for business and tourism, and with its rich cultural heritage, world-class infrastructure and diversified economy, Spain offers investors access to a mature market with significant potential for growth.
Its strategic location and membership in the European Union provide companies with access to a broad consumer base and favourable trading conditions. In addition, Spain’s commitment to renewable energy and sustainable development is in line with global trends, making it an attractive destination for environmentally conscious investors.
5- Indonesia
Indonesia’s fifth-place ranking highlights its rise as a major player in Southeast Asia’s economy. With a young population, abundant natural resources and a strategic location, Indonesia offers attractive opportunities for investors targeting dynamic emerging markets.
The government has launched ambitious infrastructure projects and reforms to improve the business environment and attract foreign investment. Despite challenges such as bureaucracy and regulatory uncertainty, Indonesia’s long-term growth prospects are strong, making it an attractive destination for business and investment.
4- India
India ranks fourth on this list, and it’s no wonder it’s one of the fastest growing major economies in the world, with a vast and diverse market, rich natural resources, and a thriving middle class.
India offers huge investment opportunities across sectors despite challenges such as bureaucracy and infrastructure bottlenecks, but the Indian government has introduced reforms to improve ease of doing business and attract foreign investment.
Initiatives such as Make in India and Digital India demonstrate the country’s commitment to creating a conducive business environment while leveraging technology to drive growth to new heights.
3- Taiwan
Taiwan’s continued third place underscores its rise as a dynamic global economic player, renowned for innovation and technological expertise, and a major hub for advanced technology industries and manufacturing.
Its strategic location in East Asia, advanced infrastructure, skilled workforce and intellectual property protection laws attract investors looking for regional opportunities.
2- United Kingdom
The UK comes in second place, underlining its enduring appeal as a global economic leader.
Despite recent political changes, the UK offers a stable and transparent business environment, and its strong investor protection, well-established legal systems and diverse talent pool make it a suitable choice for multinational companies and start-ups.
As a leading financial centre with access to European markets, the UK continues to attract investors looking for stability, opportunities for profit and growth.
1- Singapore
Singapore’s rise to the top spot reflects its dedication to creating a business-friendly environment. With low levels of corruption, strong legal frameworks, and a highly skilled workforce, Singapore has earned its reputation as a global financial hub.
Its strategic location, advanced infrastructure, and proactive government policies make it an ideal destination for companies aiming to expand into Asia. Singapore’s focus on innovation and technological advancement meets the demands of modern businesses, attracting capital to invest in various sectors.
