First Abu Dhabi Bank has published its Global Investment Outlook 2026, identifying the coming year as a decisive phase for global capital allocation amid uneven economic growth and ongoing shifts in monetary policy.
The report projects global economic growth of around 3.1% in 2026, marking a slight slowdown compared to the 3.2% forecast for 2025.
Growth in advanced economies is expected to remain modest at roughly 1.5%, while emerging markets—particularly GCC countries and Egypt—are forecast to outperform, recording growth above 4%.
The UAE is set to lead the region, with real GDP growth projected at approximately 5.6% in 2026, according to the report.
This strong performance is underpinned by continued economic diversification, structural reforms, and sustained investment activity across key sectors.
The wider Middle East and North Africa region is also expected to offer attractive investment opportunities over the period.
FAB notes that these markets are becoming increasingly important in strengthening diversification within global investment portfolios.
Monetary policy conditions in 2026 are expected to remain cautious and balanced, reflecting central banks’ measured approach.
Although inflation has eased from recent highs, it continues to pose a risk amid persistent geopolitical tensions and ongoing supply-side challenges.
Interest rate cuts in the United States are anticipated to proceed more slowly than they did in 2025.
The report highlights the need for investors to reassess capital allocation strategies and rebalance portfolios in response to changing economic conditions.
