By Dipo Olowookere

A new report which listed the Top 10 Safest Countries for Foreign Investment has excluded Nigeria despite the efforts of the administration of President Bola Tinubu to make the country the preferred place to do business.

Since assuming office on May 29, 2023, Mr Tinubu has carried out some economic reforms aimed to attract investors to Nigeria, including the liberalisation of the foreign exchange (FX) market, removal of petrol subsidy, and streamlining the tax regime, among others.

In a recent study by Atmos, top 30 countries were identified based on economic stability, investment attractiveness, and political and economic stability.

In the outcome of the research made available to Business Post on Monday, it was stated that countries were evaluated using six metrics: economic stability rank, political stability score, global peace index, investment attractiveness, foreign direct investments (FDI), and GDP per capita. These metrics were ranked, with the top country receiving a score of 100.

“When evaluating investment potential, it’s clear that economic strength alone doesn’t paint the full picture.

“Political stability and a peaceful environment are equally essential in fostering a climate that attracts long-term investment. Investors are drawn to countries where risks are minimized and confidence in future growth is high, making these factors just as critical to a nation’s financial appeal,” the chief executive of Atmos, Mr Nick Cooke, stated.

Switzerland led the ranking as the lowest risk country to invest in, with a score of 100. It featured exceptional economic fundamentals and the highest GDP per capita among the top-ranked countries at nearly $100,000. Switzerland demonstrates balance across all metrics, ranking 2nd in economic stability while maintaining excellent political stability (1.07) and peace index scores (1.33).

Singapore followed in 2nd with a score of 90.21, standing out with the highest investment attractiveness (82.4) among the top three nations and exceptional foreign direct investment inflows of over $175 million, outperforming Switzerland in this metric. The city-state’s strategic position in Southeast Asia, combined with its second-place economic stability ranking, creates a powerful investment hub. Singapore’s global peace index of 1.3 is the best among all ranked countries, reflecting its excellent security environment.

The third of the list was Canada with a score of 89.53, demonstrating exceptional investment attractiveness (86.6) and solid political stability (0.82). Canada’s balanced approach to foreign investment has resulted in substantial foreign direct investment (FDI) inflows exceeding $47 million, positioning it as a reliable North American investment alternative. The country maintains strong economic fundamentals, offering a reasonable GDP per capita of $53,431.

Japan ranked 4th with a score of 88.77, featuring the highest investment attractiveness score (86.8) among all countries in the index. The Asian country has an excellent political stability (0.951) and a strong peace index rating (1.33), creating a secure environment for foreign capital. Despite having a lower GDP per capita than other top-five nations at $33,766, Japan’s economic resilience and technological innovation continue to attract nearly $20 million in foreign investments.

The 5th place was occupied by Germany with a score of 86.32. As Europe’s largest economy, Germany maintains excellent economic stability (ranked 3rd), following Switzerland and Singapore, and a strong investment attractiveness (84.6). With GDP per capita exceeding $54K and foreign direct investments approaching $20 million, Germany represents the centerpiece of European investment security.

Denmark is the 6th-lowest risk country to invest in, with a score of 84.38, featuring an impressive GDP per capita of $68,453 and excellent political stability (0.85). Denmark’s peace index of 1.3 places it among the safest nations globally, though its relatively modest FDI figures of $4.5 million reflect its smaller market size. The Nordic nations’ consistent economic policies and transparent business environment remain key strengths for investors seeking stability.

In the 7th, Australia scored 84.08, balancing strong political stability (0.921) with excellent investment attractiveness (81.9). Australia has attracted substantial foreign direct investments exceeding $32.5 million, second only to Singapore among the top ten countries. Australia has attracted $32.5 million in foreign investments, substantially higher than Denmark and second only to Singapore. It also offers a GDP per capita of $64,820 with a relatively stronger peace index (1.525) compared to several preceding countries.

Norway was in 8th with a score of 82.44. With the second-highest GDP per capita at $87,925, Norway only trails Switzerland in this metric. It maintains solid political stability (0.89) and investment attractiveness (78.8), though its economic stability rank (11th) is the lowest among the top ten countries. The Nordic nation has attracted over $10.7 million in foreign investments despite its relatively small market size.

The United Arab Emirates took the 9th position with a score of 80.71, claiming the top position in economic stability among all countries in the index. The UAE combines this economic strength with moderate political stability (0.681) and substantial foreign investments exceeding $22.3 million. At the same time, its relatively weaker peace index score (1.979) and lower investment attractiveness (59.6) compared to other top nations prevent a higher overall ranking.

The 10th spot was grabbed by New Zealand with a score of 76.96, featuring excellent peace index ratings (1.31) but faces challenges with its economic stability ranking (18th) and modest foreign investment inflows of $3.59 million. The country’s investment attractiveness score of 63.0 is significantly lower than that of other top-ranked nations, reflecting its geographical isolation and smaller market size.