Over 300 global institutional investors met with more than 100 Middle East corporates and all seven bourses from the Gulf Cooperation Council (GCC) at HSBC’s GCC Exchanges Conference in London this week. The event comes as tariff uncertainty reshape capital flows, with global investors increasingly turning to the Gulf for yields, reform-driven growth, and maturing capital markets.
Now in its fourth year, conversations at the four-day event focused on the increasing resilience of the GCC, as the region continues to register record IPO pipelines, deepen sovereign and corporate bond markets, and expand private credit platforms. The UAE’s status as a capital market powerhouse was in focus at the conference as investors engaged with the country’s bourses and corporates. The UAE delivered US$1 trillion[1] in market capitalisation at the end of 2024 and promises a robust pipeline that continues to attract international institutional allocation.
The continued liberalisation of GCC financial markets and the introduction of privatization programmes by governments are converging at a time when investors are seeking diversification from global volatility. GCC capital markets remained resilient in the first quarter of the year with IPO proceeds 33% higher compared to the first quarter of 2024, despite a slowdown in issuances globally.[2] Similarly, M&A volumes saw their highest quarter in three years, underpinned by activity in Saudi Arabia and the UAE.
Nabeel Albloushi, Head of Markets & Securities Services, Middle East North Africa & Türkiye (MENAT), HSBC Bank Middle East, said: “Global investors are recalibrating for resilience and the GCC’s balance sheet strength and sophisticated financial markets ecosystem make it a capital magnet. The UAE offers one of the most compelling growth stories and the share of Global Emerging Markets funds with UAE exposure has surged from 35% to 65% since mid-2021[3]. The breadth of sectors coming to the market – from retail and logistics to renewables – not only reflects deepening investor confidence but also gives global institutions the diversity they seek as they rebalance portfolios.”
Abdulla Salem Alnuaimi, Group Chief Executive Officer of Abu Dhabi Securities Exchange (ADX), stated: “Our participation in the HSBC GCC Exchanges Conference in London underscores the growing role ADX is playing as a primary gateway for global capital flows into the country. In the first five months of 2025 alone, net foreign investment in ADX reached around AED 11 billion (USD 3 billion), representing a 78% increase compared to the same period in 2024. Foreign trading values have surged by more than 347% over the past five years, reflecting the continued interest of foreign institutional investors in high-performing, dividend-yielding companies across sectors such as energy, logistics, financial services, and technology.”
“Our listed companies are among the most prominent in the region, supported by strong financial fundamentals, substantial institutional scale, and high levels of transparency underpinned by Abu Dhabi’s solid economic outlook. ADX continues to offer global investors unique and diversified opportunities for growth and stability. This aligns with our strategy to attract sustainable foreign investment that contributes to the UAE’s long-term economic growth.”
Hamed Ali, CEO of Dubai Financial Market (DFM) and Nasdaq Dubai, said: “Dubai’s capital markets are gaining increasing global prominence, reflecting growing investor confidence in the emirate’s economic stability and long-term growth trajectory. At this year’s HSBC GCC Exchanges Conference, we are showcasing the strength and diversity of our listed ecosystem, underscored by DFM’s total market capitalisation of AED 951 billion. This scale of value highlights why international investors are increasingly drawn to the dynamic, growth-oriented opportunities that DFM offers as a trusted gateway in the region.”
Guest speakers from the UAE included Khalid Alqasimi, Deputy Chief of Mission, UAE Embassy, London, Hesham Heikal, Group Chief Financial Officer, Emaar Properties, Faisal Falaknaz, Group Chief Financial & Sustainability Officer, Aldar Properties, and Areeb Pasha, Chief Financial Officer, Dubizzle.
This year, for the first time, HSBC brought together Emerging Market Macro Strategists with GCC attendees, as EM investors dial-up their exposure to the Gulf’s capital markets driven by strong GDP projections relative to the broader EM pool.
[1] https://www.wam.ae/en/article/b6ywf05-uae-stock-markets-post-aed257-market-cap-growth
[2] PwC, IPO Watch, 20 May 2025
[3] HSBC Global Research – Equity Strategy – Global Research – 10 June 2025
