First Abu Dhabi Bank (FAB), recognized as the UAE’s global banking powerhouse and one of the world’s most substantial and secure financial institutions, has unveiled its 2025 Global Investment Outlook report. This document anticipates that Gulf countries, especially the UAE, will exceed global economic growth rates in 2025, propelled by strategic investments, diversification, and a vigorous expansion of the non-oil sector.
According to the report titled ‘Shaping the Future of Investments: Artificial Intelligence and the Interest Rate Environment,’ the gross domestic product (GDP) growth rate for the Gulf Cooperation Council (GCC) region is projected to increase from 2.1 percent in 2024 to 4.2 percent in 2025. The growth rate for the UAE is expected to jump from 4.5 percent to 5.6 percent, outpacing the International Monetary Fund’s global forecast of 3.2 percent.
Michel Longhini, group head of Global Private Banking at FAB, stated: “The 2025 global economic environment presents unique challenges, but the GCC region continues to stand out as a beacon of resilience and opportunity. Our 2025 Global Investment Outlook report offers a comprehensive roadmap for clients to capitalise on emerging trends, from AI-driven transformation to green energy investments and robust regional market performance, while navigating the complexities of the global economy.”
Key insights from the report include:
- AI-driven transformation: Artificial Intelligence is set to redefine industries and societies, generating substantial investment prospects. Unlike earlier technology booms, the practical applications of AI are already catalyzing deal activity and facilitating mergers and acquisitions.
- GCC economic resilience: Initiatives such as the UAE’s Vision 2031 and Saudi Arabia’s Vision 2030 are fostering growth in technology, startups, and non-oil sectors. The GCC equity markets are anticipated to yield returns of 12 percent to 13 percent in 2025, bolstered by a rebound in critical sectors and financial stability.
- Energy transition leadership: The Middle East is on the verge of transitioning from a top oil exporter to a global leader in green energy. Investments in renewable power generation, grids, and storage are expected to surge from $1.2 trillion in 2024 to $2.4 trillion by 2030. Regional energy investment is projected to reach $175 billion in 2024, with clean energy accounting for 15 percent. Strategic collaboration and public-private partnerships will be essential for maintaining the region’s energy leadership in a low-carbon future.
- Emerging market opportunities: The steady growth of India and the evolving market conditions in China continue to offer compelling investment opportunities. Nevertheless, the bank advises a diversified strategy to mitigate macroeconomic risks and leverage these prospects.
- Sectoral and asset class outlook: The report highlights strong performance in GCC equities, MENA fixed income, and global real estate, along with opportunities in private markets for diversification and enhanced returns.
Authored by the bank’s experienced experts, the 2025 Global Investment Outlook report provides comprehensive, data-driven analysis and expert commentary on a wide array of subjects. From emerging trends in artificial intelligence (AI) and the Middle East’s energy transition to advancements in global financial markets and asset classes, the report investigates the convergence of various forces that are shaping the future — equipping investors and institutions with actionable insights and strategies for the upcoming year.
