GCC debt markets poised for major growth in 2026
The Gulf Cooperation Council’s debt capital market is set to exceed $1.25 trillion in 2026 as project funding and government initiatives fuel a 13.6 percent expansion, according to Fitch Ratings.
The region is set to remain one of the largest sources of US dollar debt and sukuk issuance among emerging markets , according to the agency, which also flagged cross-sector economic diversification, refinancing needs, and funding for deficits as drivers behind the growth.
The Gulf’s debt capital markets — which stood at $1.1 trillion at the end of the third quarter of 2025 — have evolved from primarily sovereign funding tools into increasingly sophisticated financing means, serving governments, banks, and corporates alike.
As diversification agendas accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, strengthening the GCC’s role in emerging-market capital flows.
UAE attracted $45bln fdi in 2025
The UAE attracted over $45 billion in foreign direct investment last year, up nearly 50 percent year-on-year, even as global FDI declined by 11 percent, said a senior official.
“We accounted for more than half of all investment flows into the Middle East, ranked second globally for new greenfield projects, behind only the United States, and welcomed in nearly 10,000 new millionaires, more than any other country worldwide. In an age of fragmentation, our connectivity is a clear strategic advantage,” said Badr Jafar, the UAE’s Special Envoy for Business and Philanthropy.
He was speaking during a discussion hosted by the UAE Pavilion during the 2026 World Economic Forum Annual Meeting in Davos.
Gateway to growth across 6- nation in the Gulf region
Across the past decade, the Gulf Cooperation Council has undergone a structural economic shift that global investors can no longer afford to overlook. Once defined largely by hydrocarbons, the six-nation bloc has re-engineered its growth model around diversification, regulatory reform and capital mobility. Presently, the GCC represents a combined economy exceeding $2.3 trillion. According to the Gulf Economic Update (GEU), Fall 2025, growth across the bloc remains resilient, with the UAE projected to expand by 4.8 percent, followed by Saudi Arabia at 3.8 percent, Bahrain at 3.5 percent, Oman at 3.1 percent, Qatar at 2.8 percent and Kuwait at 2.7 percent.
In 2025 Saudi exchange leads GCC in foreign net buying
Foreign investors poured $5.5 billion into the Saudi exchange in 2025, the highest net buying in the Gulf Cooperation Council, an analysis showed.
In its latest report, Kamco Invest said the Kingdom was followed by the Abu Dhabi and Kuwait exchanges, which saw net foreign inflows of $3.4 billion and $1.5 billion, respectively, over the 12 months.
Dubai and Qatar also registered net buying in 2025, amounting to $1.3 billion and $171 million, respectively.
The steady performance in the majority of exchanges in the region comes as GCC equity markets continue to attract global capital, buoyed by strong corporate earnings and ongoing economic reforms.
Oman’s economy grows 2pc in q3
Oman’s economy expanded 2 percent in the third quarter of 2025, supported by steady growth in non-oil activities, while bank lending continued to rise faster than deposits, underscoring improving domestic demand.
Gross domestic product at constant prices reached about 9.91 billion Omani rials ($26 billion) in the three months through September, up from 9.71 billion rials a year earlier, according to preliminary data from the National Centre for Statistics and Information.
The expansion was driven mainly by non-oil sectors, where value added increased 2 percent to more than 7.3 billion rials, Oman News Agency reported.
In Pakistan, Kuwait eyes investment opportunities
Kuwait has expressed strong interest in expanding economic and investment cooperation with Pakistan, citing confidence in the country’s economic potential, growing market, and long-term investment prospects.
The understanding emerged during a meeting on the sidelines of the World Economic Forum Annual Meeting in Davos between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and Kuwait’s Minister of Finance, Subaih Abdul Aziz Al-Mukhaizeem.
The two leaders exchanged views on Pakistan’s economic outlook and explored avenues to strengthen bilateral trade and investment ties, according to a press release issued.
The Kuwaiti finance minister shared Kuwait’s positive assessment of Pakistan’s economic fundamentals, noting the country’s human capital, market size, and emerging opportunities.
He said Kuwait was increasingly looking beyond traditional markets for investments and viewed Pakistan as a promising destination, emphasizing a long-term and partnership-oriented approach.
UAE, Uzbekistan enlarge economic cooperation with mining sector pact
The UAE has signed an agreement to expand cooperation in Uzbekistan’s mining sector, as the two countries seek to scale investment, modernize infrastructure and deepen economic ties.
The memorandum of understanding was signed by Mohamed Hassan Al-Suwaidi, UAE minister of investment, and Jamshid Khodjaev, Uzbekistan’s deputy prime minister, according to the Emirates News Agency, also known as WAM.
The agreement comes amid growing bilateral investment flows. UAE investments in Uzbekistan reached $1.3 billion in 2024, including about $700 million in renewable energy, with more than $4 billion in joint projects currently under development, WAM reported.
Commenting on the MoU, Al-Suwaidi said that his country and Uzbekistan share a longstanding relationship built on mutual trust and strong economic cooperation.
“Today’s signing reflects the UAE’s commitment to forging strategic international partnerships in sectors of mutual interest that support sustainable development and long-term economic value creation,” he said.