First Abu Dhabi Bank anticipates that the United Arab Emirates will lead regional performance, projecting a real GDP growth of approximately 5.6% by 2026, supported by economic diversification initiatives, structural reforms, and sustained investment momentum.
This outlook was shared in the bank’s report titled “Global Investment Outlook 2026,” which carries the subtitle: “Accelerated Transformations: Realigning Capital in a Shifting Global Economic System.”
The report indicates that global economic growth is expected to remain robust, with a projected global GDP increase of 3.1% in 2026, down slightly from 3.2% in 2025.
Regionally, the forecasts appear more optimistic, bolstered by strong non-oil GDP growth and ongoing political reforms. It’s expected that the Middle East and North Africa will present attractive investment opportunities, playing an increasingly significant role in enhancing diversification within global portfolios.
The report highlights the rapid pace of institutional transformation in the Gulf Cooperation Council (GCC) countries, the evolution of regulatory frameworks, and the region’s growing role in global capital allocation. It also examines how asset managers in the region are responding to the rising demand for professional investment solutions, improving governance, and broadening the range of investment products.
The report states that 2026 will mark a pivotal moment for capital direction and allocation, given the varied rates of economic growth, shifts in monetary policy, and changing global risk dynamics.
It outlines a global environment characterized by economic upheaval, a slowdown and disparity in monetary easing, changes in capital flows, and escalating geopolitical and technological complexities.
In this context, the report underscores the necessity of recalibrating capital strategies and portfolio allocations, positioning GCC countries as a benchmark for growth and stability. It also provides a structured framework for risk management and seizing long-term investment opportunities across different asset classes and regions.