First Abu Dhabi Bank (FAB), the UAE’s global bank and one of the world’s largest and safest financial institutions, has launched its 2025 Global Investment Outlook report. It forecasts that Gulf countries, particularly the UAE, will outpace global economic growth in 2025, driven by strategic investments, diversification and robust non-oil sector expansion.
According to the report, ‘Shaping the Future of Investments: Artificial Intelligence and the Interest Rate Environment’, the gross domestic product (GDP) growth rate of the Gulf Cooperation Council (GCC) region is expected to double from 2.1% in 2024 to 4.2% in 2025. The UAE’s growth rate is projected to rise from 4.5% to 5.6%, surpassing the International Monetary Fund’s global forecast of 3.2%.
Michel Longhini, Group Head of Global Private Banking at FAB, said: “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: AI is poised to reshape industries and societies, creating significant investment opportunities. Unlike previous tech booms, AI’s tangible applications are already driving deal activity and mergers and acquisitions.
- GCC economic resilience: National initiatives like the UAE’s Vision 2031 and Saudi Arabia’s Vision 2030 are driving growth in technology, startups and non-oil sectors. GCC equity markets are projected to deliver returns of 12% to 13% in 2025, supported by a recovery in key sectors and financial stability.
- Energy transition leadership: The Middle East is poised to transform from a leading oil exporter to a global hub for green energy. Investment in renewable power generation, grids and storage is projected to rise from USD 1.2 trillion in 2024 to USD 2.4 trillion by 2030. Regional energy investment is expected to reach USD 175 billion in 2024, with clean energy comprising 15%. Strategic cooperation and public-private partnerships will be key to sustaining the region’s energy leadership in a low-carbon future.
- Emerging market opportunities: India’s steady growth and China’s evolving market dynamics continue to present compelling investment cases. However, the bank recommends a diversified approach to mitigate macroeconomic risks and capitalise on these opportunities.
- Sectoral and asset class outlook: The report identifies robust performance in GCC equities, MENA fixed income and global real estate, alongside opportunities in private markets for diversification and higher returns.
Authored by the bank’s seasoned experts, the 2025 Global Investment Outlook report delivers in-depth, data-driven analysis and expert commentary on a diverse range of topics. From emerging trends in artificial intelligence (AI) and the Middle East’s energy transition to developments across global financial markets and asset classes, the report explores the convergence of multiple forces shaping the future — empowering investors and institutions with actionable insights and strategies for the year ahead.
For more details and insights, the full report can be viewed and downloaded here: Global Investment Outlook | First Abu Dhabi Bank (FAB) – UAE
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ABOUT FIRST ABU DHABI BANK
Headquartered in the United Arab Emirates, First Abu Dhabi Bank (FAB) is one of the UAE’s global bank and one of the world’s largest and safest financial institutions, with total assets of AED 1.21 trillion (USD 330 billion) at the end of December 2024 and a credit rating of Aa3/AA-/AA- from Moody’s, S&P and Fitch respectively, with a stable outlook.
FAB provides financial services and expertise across five business units – Investment Banking, Corporate and Commercial Banking, Consumer Banking, Private Banking, and Global Markets – through an international network that covers 20 markets worldwide.
Listed on the Abu Dhabi Securities Exchange (ADX), FAB is a leading Islamic finance provider and a pioneer in sukuk issuance offering comprehensive Shari’ah-compliant products. FAB is also a regional leader in sustainability, with an MSCI ESG rating of ‘AA,’ and ranked among the top 5% of banks globally according to Refinitiv’s ESG scores. The bank also received a regional-best Low ESG Risk evaluation from Sustainalytics, and the highest CDP score among UAE banks. FAB currently chairs the Net-Zero Banking Alliance (NZBA) Principals Group and was the first GCC bank to join the UN-convened organisation in 2021.
