Simon Williams, HSBC’s chief economist for Central and Eastern Europe, Middle East, and Africa, affirmed that economic prospects for the Gulf Cooperation Council (GCC) region, particularly the UAE, remain strong despite global headwinds.
Speaking to the Emirates News Agency (WAM) on the sidelines of the third MENA Capital Markets Summit, Williams noted that the UAE entered 2025 with solid economic momentum driven by rising consumption and investment, factors expected to persist soon.
He highlighted that Gulf state budgets remain robust and that structural reforms implemented over the past five years have enhanced long-term growth potential, enabling resilience to external shocks.
Williams projected that the UAE’s non-oil GDP would grow by between 3.5 and 4 percent in 2025 and 2026, calling this a strong performance by global standards.
On global trade tensions, he stated that there are no winners in ongoing trade wars and tariffs, which disrupt global growth. He said long-term shifts in international trade may prompt companies to reassess foreign direct investment strategies and capital allocation.
Regarding FDI into the UAE, Williams said inflows remained strong over the past three years, accounting for 4 to 5 percent of GDP, a notably high level by global comparison.
Commenting on the Capital Markets Summit, he said it is a key platform that brings together policymakers, market participants, financial institutions, and corporates to discuss current dynamics, emerging opportunities, and vulnerabilities.
During the summit, HSBC UAE released a report titled “Strategy to Scale: Dubai’s Blueprint for Capital Market Growth”, underscoring the role of capital markets in achieving Dubai’s ambition of becoming one of the world’s top four financial centres.
The report, produced in partnership with Dubai Financial Market (DFM), guides new investors. It outlines how the accelerated internationalisation of equities and bonds and sweeping structural reforms will bring Dubai closer to its 2033 economic vision.
The report explores Dubai’s capital markets’ expansion and global reach, including potential improvements in deal flows, secondary market liquidity, and tech-driven financial infrastructure.
Between 2016 and 2024, DFM delivered annualised returns of 4.9 percent in US dollars, outperforming the broader MSCI Emerging Markets Index, which posted 2.8 percent.
By the end of 2024, foreign investors accounted for half of DFM’s total trading activity and 85 percent of registered investors, underscoring Dubai’s global appeal.
The number of wealth and asset managers operating in Dubai International Financial Centre (DIFC) rose by 16 percent year-on-year to 410 in 2024, including 75 hedge fund managers, 48 of whom oversee assets exceeding US$1 billion.
In 2024, Dubai captured 2.2 percent of global IPO activity, including the public listing of Talabat, the on-demand food, grocery, and retail delivery platform. The listing marked the largest tech-sector IPO globally that year.
–Input WAM
