[A.T. Kearney Survey] 2026 Foreign Direct Investment Confidence Index Ranking
A.T. Kearney announced the '2026 Foreign Direct Investment Confidence Index.' Driven by a focus on technological innovation, Japan rose to 3rd place, while the Asia-Pacific region increased its global presence.
📋 Article Processing Timeline
- 📰 Published: April 10, 2026 at 20:00
- 🔍 Collected: April 11, 2026 at 00:26 (4h 26m after Published)
- 🤖 AI Analyzed: April 20, 2026 at 02:20 (217h 53m after Collected)
The Global Business Policy Council (GBPC, Arlington, Virginia, USA), the macroeconomic think tank of management consulting firm A.T. Kearney (Global Brand Name: KEARNEY / Minato-ku, Tokyo, Japan Representative: Takefumi Harigaya), today released the findings of the '2026 Foreign Direct Investment Confidence Index® (FDICI)'. This survey ranks and analyzes the top 25 markets attractive as investment destinations over the next three years.
As a result of this survey, it has become clear that companies maintain an active stance on outward investment even in an environment of increasing uncertainty due to escalating geopolitical tensions, expanding industrial policies, and accelerating technological competition. 88% of investors responded that they would increase foreign direct investment over the next three years, demonstrating sustained confidence in long-term global investment opportunities. On the other hand, the most likely risks over the next year were cited as rising geopolitical tensions (36%), followed by rising resource prices and political instability in developed markets (30%). The escalation of conflict in the Middle East, depending on how risks unfold, could cause disruptions, delays, or even reallocations of investment flows, adding further uncertainty to the global investment environment.
Erik R. Peterson, Partner and Managing Director of the GBPC and author of this survey, commented:
'While investors still value outward investment, they are reassessing how investment decisions are made in a highly uncertain business environment. Although capital flows themselves are maintained, companies are increasingly selective about investment destinations, taking into account technological capabilities, geopolitical risks, and the growing influence of industrial policies.'
**Technological Innovation Dictates Investment Decisions, Boosting Japan's Evaluation**
As the primary factor when selecting an investment destination, technological innovation capability surpassed traditional factors such as regulatory efficiency and domestic economic performance. In 10 of the 25 markets surveyed, technological innovation was cited as the most important factor, indicating that the importance of an innovation ecosystem in attracting global capital is growing even further. As investments in artificial intelligence, digital infrastructure, and data-driven technologies accelerate globally, markets with strong technological innovation foundations are evaluated as having higher appeal as long-term investment destinations.
Amidst these trends, Japan rose in ranking from 4th last year to 3rd, maintaining its top 10 position for 12 consecutive years. The background to this is that 43% of investors cited technological innovation as their primary reason for investing, combined with economic growth recovery (1.2% growth in 2025, recovering from negative 0.2% growth in 2024) and the government's promotion of inward direct investment measures, which seem to have boosted investor sentiment. Furthermore, Japan is positioned 2nd in the optimism ranking as an investment destination (the difference between the percentage answering optimistic and pessimistic), suggesting strong positive views among investors.
**The Asia-Pacific Region's Presence Further Increases**
In this year's survey, the Asia-Pacific region accounted for 10 of the top 25 markets, capturing the largest regional share for the first time in over a decade. In addition to Japan and China (4th) ranking high, Singapore made a significant leap from 15th to 8th, while South Korea (11th) and India (22nd) also improved their rankings. Furthermore, the region as a whole is becoming more attractive as an investment destination, with Thailand (20th) returning to the top 25 for the first time in three years, and Malaysia (21st) for the first time in 12 years. Also, investors' optimism towards the Asia-Pacific region was the highest among all regions surveyed this time, further strengthening its position as a market that attracts investor expectations. The rise of these 'middle power' economies, coupled with the restructuring of global supply chains
As a result of this survey, it has become clear that companies maintain an active stance on outward investment even in an environment of increasing uncertainty due to escalating geopolitical tensions, expanding industrial policies, and accelerating technological competition. 88% of investors responded that they would increase foreign direct investment over the next three years, demonstrating sustained confidence in long-term global investment opportunities. On the other hand, the most likely risks over the next year were cited as rising geopolitical tensions (36%), followed by rising resource prices and political instability in developed markets (30%). The escalation of conflict in the Middle East, depending on how risks unfold, could cause disruptions, delays, or even reallocations of investment flows, adding further uncertainty to the global investment environment.
Erik R. Peterson, Partner and Managing Director of the GBPC and author of this survey, commented:
'While investors still value outward investment, they are reassessing how investment decisions are made in a highly uncertain business environment. Although capital flows themselves are maintained, companies are increasingly selective about investment destinations, taking into account technological capabilities, geopolitical risks, and the growing influence of industrial policies.'
**Technological Innovation Dictates Investment Decisions, Boosting Japan's Evaluation**
As the primary factor when selecting an investment destination, technological innovation capability surpassed traditional factors such as regulatory efficiency and domestic economic performance. In 10 of the 25 markets surveyed, technological innovation was cited as the most important factor, indicating that the importance of an innovation ecosystem in attracting global capital is growing even further. As investments in artificial intelligence, digital infrastructure, and data-driven technologies accelerate globally, markets with strong technological innovation foundations are evaluated as having higher appeal as long-term investment destinations.
Amidst these trends, Japan rose in ranking from 4th last year to 3rd, maintaining its top 10 position for 12 consecutive years. The background to this is that 43% of investors cited technological innovation as their primary reason for investing, combined with economic growth recovery (1.2% growth in 2025, recovering from negative 0.2% growth in 2024) and the government's promotion of inward direct investment measures, which seem to have boosted investor sentiment. Furthermore, Japan is positioned 2nd in the optimism ranking as an investment destination (the difference between the percentage answering optimistic and pessimistic), suggesting strong positive views among investors.
**The Asia-Pacific Region's Presence Further Increases**
In this year's survey, the Asia-Pacific region accounted for 10 of the top 25 markets, capturing the largest regional share for the first time in over a decade. In addition to Japan and China (4th) ranking high, Singapore made a significant leap from 15th to 8th, while South Korea (11th) and India (22nd) also improved their rankings. Furthermore, the region as a whole is becoming more attractive as an investment destination, with Thailand (20th) returning to the top 25 for the first time in three years, and Malaysia (21st) for the first time in 12 years. Also, investors' optimism towards the Asia-Pacific region was the highest among all regions surveyed this time, further strengthening its position as a market that attracts investor expectations. The rise of these 'middle power' economies, coupled with the restructuring of global supply chains