Image: Supplied
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.” – Peter Drucker
The global investment playbook is being quietly, yet decisively, redrawn. No longer relegated to the margins or regarded merely as a ‘must-visit’ stop for capital raising, the Middle East is asserting its place on the global stage.
What was once viewed as a subset of emerging markets is now standing firmly on its own: a region of rising strategic significance across public and private markets, infrastructure, real assets, and venture capital.
Structural reforms driving real economic power
The numbers tell a compelling story. Gulf sovereign wealth funds now manage approximately $12tn globally as of 2024, with forecasts pointing to $18tn by 2030 (Deloitte). To put this in perspective, that represents nearly two-thirds of China’s entire GDP and over 40 per cent of US GDP.
These funds are no longer passive pools of petrodollars; they have become strategic investment vehicles actively shaping global market dynamics.
At the heart of MENA’s transformation is economic diversification. Nations such as Saudi Arabia and the UAE are pushing well beyond oil dependency, guided by forward-looking visions like Saudi Arabia’s Vision 2030 and the UAE’s Centennial 2071.
These comprehensive strategies emphasise industrial expansion, digital transformation, clean energy, tourism, logistics, financial services, advanced manufacturing, healthcare, education, and knowledge-based sectors.
This diversification is supported by institutional reforms, improved regulatory frameworks, and financial infrastructure modernisation that together are driving investor confidence.
Market activity and institutional depth
MENA’s capital markets are gaining in both scale and sophistication. In 2024, the region saw 54 IPOs raise $12.6bn (EY). Meanwhile, the GCC bond market surged, with a 71 per cent year-on-year increase in issuances. The total GCC market capitalisation reached $4.2tn.
Momentum continued into 2025. According to EY’s MENA IPO Eye report, the first quarter saw 14 IPOs raise $2.4bn, more than double the amount raised during the same period in 2024. Saudi Arabia led the way with 12 of those listings.
These developments are backed by improved institutional infrastructure. Exchanges have adopted global standards, regulatory regimes have become more transparent, and financial free zones offer globally competitive environments. Governance and oversight now match international benchmarks, creating conditions that are attracting long-term institutional capital.
Sectoral evolution and strategic growth
Diversification is not only occurring at the macro level. MENA’s sectoral landscape is expanding rapidly. Fintech is one of the standout sectors, with more than 1,000 firms now active and four unicorns already in existence (McKinsey). Between 2023 and 2024, $1.9bn was invested in 237 fintech deals, driven by progressive regulation and digital penetration.
The energy transition is another defining theme. The region is leveraging its natural advantages in solar and wind to become a global leader in renewable energy. Saudi Arabia’s renewable capacity is projected to surpass that of many European nations within the decade. Egypt, Morocco, and the UAE are also developing large-scale solar and wind assets, with support from both public and private investment.
Technology and innovation remain central to MENA’s strategy. The UAE expects artificial intelligence to contribute 14 per cent of its GDP by 2030. It is launching the Stargate AI campus in partnership with OpenAI, Oracle, Nvidia, and Cisco – part of over $2tn in committed regional investments including those from Saudi Arabia and Qatar.
Demographics, fiscal discipline, and domestic capital formation
The region’s young, increasingly educated population is a key growth driver. This demographic dividend is translating into rising demand for housing, healthcare, infrastructure, and digital services. Governments are also fostering retail investor participation through financial literacy programs and accessible investment platforms, which is helping to deepen domestic capital pools and support market liquidity.
Underpinning this progress is a remarkably resilient fiscal foundation. Most Gulf economies are currently operating with positive fiscal balances, buoyed by strong commodity prices, particularly in oil, metals, and petrochemicals. Importantly, the commodities supercycle has not triggered a return to past complacency. Austerity measures introduced during the COVID-19 pandemic, including subsidy rationalization and VAT implementation, remain largely in place, demonstrating a discipline that strengthens long-term investment credibility.
At the heart of this evolving landscape, asset management firms like ASB Capital are stepping into a pivotal role – bridging investor needs with on-the-ground insights to help unlock value on both sides of the equation: channelling regional growth to the world and directing global capital into the region’s most transformative opportunities.
MENA as an integral force across asset classes: No longer a theory
The next great investment opportunity is rarely found where everyone is looking – it emerges where fundamentals quietly shift before the world catches on.
The case for MENA as a core component of global asset class allocations is no longer speculative. Its economic cycles are increasingly uncorrelated with the West. Its reform trajectory is aligned with global capital priorities. And its return profile is no longer just competitive – it is indispensable.
The writer is the senior executive officer of ASB Capital.
