First Abu Dhabi Bank (FAB), the UAE’s leading financial institution, has unveiled its 2025 Global Investment Outlook, forecasting strong economic growth for the Gulf region.
The report, titled Shaping the Future of Investments: Artificial Intelligence and the Interest Rate Environment, highlights the UAE’s projected GDP growth surge from 4.5% in 2024 to 5.6% in 2025, surpassing the International Monetary Fund’s (IMF) global estimate of 3.2%. The broader GCC economy is expected to double its growth rate from 2.1% to 4.2%.
Michel Longhini, FAB’s Group Head of Global Private Banking, emphasized the region’s resilience, stating:
“The 2025 global economic environment presents unique challenges, but the GCC region continues to stand out as a beacon of resilience and opportunity.”
Key Insights from the Report:
- AI-Driven Transformation – Artificial intelligence is set to revolutionize industries, fueling mergers, acquisitions, and investment activity.
- GCC Economic Resilience – Government initiatives such as the UAE Vision 2031 and Saudi Vision 2030 are accelerating growth in technology, startups, and non-oil sectors, with GCC equity markets projected to return 12-13% in 2025.
- Energy Transition Leadership – The Middle East is shifting towards green energy investments, with renewable energy funding expected to rise from USD 1.2 trillion in 2024 to USD 2.4 trillion by 2030.
- Emerging Market Opportunities – India’s steady expansion and China’s evolving economic landscape offer attractive investment prospects.
- Sectoral & Asset Class Outlook – GCC equities, MENA fixed income, and global real estate are positioned for strong performance, with private markets providing additional diversification.
FAB’s report delivers a comprehensive roadmap for investors navigating technological shifts, economic transformations, and global financial markets in the year ahead.
News Source: Emirates News Agency
