The economic outlook for the Gulf Cooperation Council (GCC) region, particularly the UAE, remains robust in 2025, despite facing global uncertainties, according to Simon Williams, chief economist for Central and Eastern Europe, Middle East, and Africa at HSBC.
Speaking at the third MENA Capital Markets Summit, Williams highlighted that the UAE entered 2025 with strong economic momentum, driven by rising consumption and investment. He projects the country’s non-oil GDP to grow by 3.5 to 4 percent in both 2025 and 2026, marking a solid performance by global standards. Structural reforms and a resilient budget have bolstered long-term growth potential, positioning the UAE to withstand external economic pressures.
Williams also addressed global trade tensions, stating that ongoing trade wars and tariffs have disrupted growth worldwide, with no clear winners. He emphasized that these shifts may prompt companies to reassess their foreign direct investment (FDI) strategies. Despite these challenges, FDI into the UAE has remained strong, accounting for 4 to 5 percent of GDP in recent years, a notable figure globally.
During the summit, HSBC UAE unveiled a report in collaboration with Dubai Financial Market (DFM) outlining Dubai’s strategy for capital market growth. The report emphasizes Dubai’s goal of becoming one of the top four financial hubs globally by 2033, highlighting the city’s strong performance in capital markets. From 2016 to 2024, DFM outperformed the MSCI Emerging Markets Index with annualized returns of 4.9 percent, and foreign investors now account for half of the market’s trading activity.
Dubai’s growing appeal as a global financial center was further underscored by its significant share of global IPO activity and the rising number of wealth and asset managers in the Dubai International Financial Centre.
News Source: Emirates News Agency
