Kearney’s 2026 Foreign Direct Investment Confidence Index (FDICI) reveals that Asia Pacific (APAC) has secured the largest share of ranked markets for the first time in over a decade. The region’s dominance in the index, which ranks markets likely to attract foreign direct investment (FDI) over the next three years, is attributed to its technological capabilities, economic growth potential, and geopolitical relevance.
Japan, China, and Singapore have made significant strides in the rankings, with Japan rising to third place, China to fourth, and Singapore making a notable leap from 15th to 8th. This shift is largely due to these countries’ focus on innovation and supportive industrial policies. Shigeru Sekinada, Region Chair for Asia Pacific at Kearney, noted, “The APAC region emerges as a winner as investors recalibrate how they make decisions in a more turbulent operating environment.”
The survey, conducted in January 2026 among over 500 senior executives, highlights that 88% of respondents plan to increase FDI over the next three years, despite global uncertainties. Technological and innovation capabilities have become the most important factors influencing investment decisions, surpassing traditional considerations like regulatory efficiency.
Geopolitical tensions and industrial policy are reshaping the investment landscape, with 84% of investors considering industrial policy as extremely important. APAC investors particularly favour infrastructure development and subsidies as effective policy tools. As the global investment environment evolves, APAC’s strong showing in the index underscores its growing appeal as a destination for foreign investment.
