The Philippines has slipped three spots to 16th place in the 2025 edition of Kearney’s Foreign Direct Investment (FDI) Confidence Index for emerging markets, raising concerns over the country’s ability to attract foreign capital in the next three years.
With an index score of 1.2966, the Philippines dropped from its previous 13th position in 2024 and failed to break into the global top 25 investment destinations. The annual index ranks markets based on their potential to draw the most FDI, using responses from C-level executives and regional and business leaders around the world.
The 2025 index shows that China, the United Arab Emirates, and Saudi Arabia remain the top three emerging markets for FDI, all holding steady in their ranks from last year. Meanwhile, South Africa showed notable improvement, climbing four spots to 7th place, while the Philippines was among the countries that experienced a decline in investor confidence.
The index considers the likelihood of executives making direct investments over a three-year period, with higher scores indicating greater investment attractiveness. The Philippines’ slip may reflect rising competition, regional uncertainties, or perceived challenges in regulatory or economic stability.
Globally, the United States retained the top spot with an index score of 2.3848, followed by Canada, the United Kingdom, Japan, and Germany. Among emerging markets, Chile, Peru, and Costa Rica also saw significant drops, with each country falling four places.
The survey was conducted in January 2025.
