First Abu Dhabi Bank (FAB) has unveiled its 2025 Global Investment Outlook report, indicating that Gulf Cooperation Council (GCC) countries are set to surpass global economic growth in the coming year.

The report forecasts an increase in the GCC's GDP growth rate from 2.1% in 2024 to 4.2% in 2025, with the UAE's growth expected to rise from 4.5% to 5.6%.

Emerging markets such as India and China are highlighted as key opportunities, with a recommendation for a diversified investment strategy to mitigate macroeconomic risks.

A significant trend identified in the report is the AI-driven transformation, which is anticipated to create substantial investment opportunities, distinguishing it from previous technology booms.

Regional energy investments are projected to reach USD 175 billion in 2024, with 15% earmarked for clean energy initiatives.

The report points to promising performance prospects for GCC equities, MENA fixed income, global real estate, and private markets, presenting avenues for diversification and enhanced returns.

Michel Longhini, FAB's Group Head of Global Private Banking, emphasizes the GCC's resilience and the investment opportunities available despite global economic challenges.

FAB's report offers a comprehensive analysis and expert commentary on various topics, delivering actionable insights for investors and institutions for the upcoming year.

The Middle East is evolving from a primary oil exporter to a frontrunner in green energy, with renewable energy investments expected to double from USD 1.2 trillion in 2024 to USD 2.4 trillion by 2030.

National initiatives like the UAE's Vision 2031 and Saudi Arabia's Vision 2030 are driving growth in technology and non-oil sectors within the GCC.

GCC equity markets are anticipated to yield returns of 12% to 13% in 2025, supported by recovery in key sectors and overall financial stability.