The US state of Ohio is positioning itself as a top destination for foreign direct investment (FDI) from the Gulf region, with state officials confirming growing interest from sovereign wealth funds and companies, particularly in real estate and healthcare, even as the state’s economy approaches the $1 trillion mark.
Speaking to a visiting delegation of journalists, Andrew Deye, Chief Financial Officer of JobsOhio, the state’s privatised economic development arm, said the American state’s gross domestic product currently stands at $967 billion, with the state branding itself “the heart of it all” due to its central US geography.
“About one out of six deals we work on are FDI,” Deye said, adding that roughly 40 per cent of foreign investment into the state comes from Europe, 40 per cent from Asia-Pacific, and the remainder from Canada, South America and other regions.
Asked specifically about interest from the GCC, where sovereign wealth funds manage trillions of dollars in assets, Deye said Gulf investors had so far been most active in real estate, both directly and through intermediaries. He also pointed to a parallel trend of US health systems expanding into the Middle East.
Currently, the Cleveland Clinics, which has the main campus located in Ohio, also has a strong presence in Abu Dhabi. Similarly, Cincinnati Children’s is also working with the healthcare authorities in the UAE for training and other collaboration.
JobsOhio has already sent a delegation to the UAE as part of its outreach efforts, Deye said, alongside recent missions to the Singapore Airshow and India’s Global AI Summit, as the state looks to diversify its FDI base beyond traditional partners such as Japan, Germany and South Korea.
Japan remains Ohio’s most significant FDI relationship, anchored by Honda’s flagship auto plant near Columbus, built in the late 1970s and early 1980s. South Korea has also emerged as a major investor, led by LG Energy’s battery plant operations, while Thailand’s PTT Global Chemical operates in Cincinnati under the Emory Oleo Chemicals brand. Overall, Ohio has worked with companies from about 40 countries since JobsOhio’s inception.
Speed, risk and cost
Deye said companies evaluating Ohio typically weigh three factors: speed of permitting and local support, risk – given the state’s low exposure to natural disasters such as hurricanes and tornadoes – and overall operating costs, including taxes, electricity, land and cost of living.
On tax structure, Ohio currently imposes no tax on business receipts below $6 million, a policy Deye described as highly competitive among US states. The state’s credit rating was upgraded to AAA two years ago, which he linked to a “fiscal flywheel” of corporate investment generating higher tax revenues for infrastructure and education.
Under its JobsOhio 2030 strategy, the state is concentrating resources on five “super sectors”: semiconductors, energy, artificial intelligence, life sciences, and aerospace and defence, alongside a broader focus on 10 priority industries and roles paying upwards of $40 an hour.
Ohio recently secured a major Intel semiconductor plant and is set to host what Deye described as the world’s largest AI data centre, located roughly 100 miles east of Cincinnati in the Appalachian region. The project, tied to the US-Japan trade agreement, involves SoftBank among other major investors.
Deye attributed Ohio’s growing data centre footprint – which already includes operations from Amazon Web Services, Google, Microsoft and Meta – to its natural gas reserves, with the state’s policy of exempting data centre equipment from sales tax helping it compete with established hubs in the country.
On workforce readiness, JobsOhio has launched “AI Ready Ohio,” a training and certification programme; about 1,000 people were certified in Cincinnati alone in a recent session, Deye said.
Talent, livability and culture
Responding to questions on what drives corporate relocation decisions, a regional economic development official told the delegation that access to workforce remains the top priority for companies, followed closely by livability for employees and access to culture and diversity – factors he said carry particular weight with foreign investors, especially in the life sciences sector.
The state recorded seven FDI projects in the region last year, five of which landed in southwest region specifically, accounting for nearly 18 per cent of job creation across five counties. Over a 12-year period, the region recorded 830 total projects, of which 121 were foreign direct investment wins.
The state recorded seven FDI projects in the region last year, five of which landed in southwest region specifically, accounting for nearly 18 per cent of job creation across five counties
By the numbers: southwest Ohio
The Cincinnati region posts more than $200 billion in gross regional product and roughly $175 billion in annual exports, with a population of 2.3 million and a workforce of 1.2 million. Median income stands at $81,000, above the national average, and the region hosts more than 500 foreign firms from 40 countries.
Some of the big names includes P&G, Tata Consultancy Services, Siemens, Accenture, Modula, Schneider Electric, Corbus, EI Ceramics, Tech Mahindra Americas,
Officials also highlighted the region’s logistics advantages: 60 per cent of the US and Canadian population lies within an eight-hour drive, while 66 per cent of major US markets are within a 90-minute flight. Cincinnati/Northern Kentucky International Airport (CVG) offers direct international flights to Paris and London.
The region has also been ranked the top US metro for young professionals, a factor officials said helps attract international talent alongside local efforts such as the Blink light and art festival, which draws more than two million visitors every two years.
Why Ohio
Best children’s hospital in the US: Cincinnati Children’s Hospital
Best hospital in the world: Cleveland Clinic
STEM graduates: over 39,000 annually
Life science graduates: 6,000 annually
Life science graduates: Number 1 state in the Midwest
Pediatric healthcare: Ranked number 1 in the US
