FAB: GCC Will Outperform Global Economy in 2024

• Group’s Global Investment Outlook 2024 report recommends buyers diversify asset allocation, factors to alternatives in MENA ESG investing.

The economies of the UAE and Gulf nations will outpace the worldwide forecast for 2024, helped by the home multi-year funding cycle within the area, based on First Abu Dhabi Bank’s 2024 Global Investment Outlook (GIO) Report: ‘Making a positive impact.’

Despite latest geopolitical headwinds and muted world restoration, FAB expects nationwide and regional progress to be pushed by the strong demand in tourism, actual property, transportation, and manufacturing sectors. FAB sees the UAE’s GDP increasing 3.7% in 2023 and 4% in 2024, and the GCC’s by 3.4% in 2024 — larger than the IMF’s world forecast of three.1% and a couple of.1% for the United States in 2024.

The GIO report, written by the financial institution’s business specialists, examines the present world financial and funding atmosphere, offering insights into key macroeconomic tendencies.

FAB’s outlook notes that the GCC area continues to be supported by robust progress in non-oil GDP, with 3.4% anticipated within the medium time period as nations within the area proceed to diversify their economies.

In monetary markets, FAB recommends buyers diversify the asset allocation of their portfolios as market and financial volatility appears to be like more likely to proceed in 2024 and construct a defensive portfolio to supply flexibility. The report factors out tailwinds resembling larger fiscal spending, speedy disinflation and a decent labour market up to now supporting consumption and spending and lifting world fairness markets however notes a delayed impression of financial coverage selections might quickly take impact till rates of interest and inflation come down.

Michel Longhini, Group Head of FAB Global Private Banking, stated: “Investors might want to stay cautious given the rise and heightened ranges of rates of interest which can proceed to impression economies and geopolitical dangers which might enhance volatility. Global financial progress is predicted to decelerate in 2024. However, our regional markets look resilient, with financial progress anticipated to choose up, pushed by profitable financial diversification and reforms.

“In the ESG investing space, MENA markets provide some interesting opportunities along with diversification benefits for global portfolios. This year’s Global Investment Outlook theme — ‘Interest Rate Peaks and ESG Integration: Shaping the Future of Global Asset Allocation’ — identifies these investment opportunities and addresses key issues that will drive return for investors. FAB clients can benefit from the input and the research of the entire team of economists and investment professionals whose views have been brought together here.”

Alongside key financial indicators, the FAB GIO considers a spread of tendencies shaping future progress prospects, together with a give attention to particular industries. The report contains targeted chapters on ESG (environmental, social and governance), oil, MENA markets outlook, rising markets outlook, world markets outlook, actual property, and developments in funding merchandise and options.

The GIO report additionally highlights what FAB believes are the 5 key dangers for 2024: synthetic intelligence, the US elections, tensions within the Middle East and Africa, local weather change, and US-China relations.