UAE Financial Hub Defies Geopolitical Headwinds

Neither global uncertainties nor regional tensions were able to slow the solid start into the new year of the second-largest economy on the Arabian Gulf.Venezuela, Greenland, Iran, Palestine. Many had imagined a different start to 2026. «Geopolitical fragmentation of the world is the new normal,» said Ben Powell, Chief Investment Strategist for Asia-Pacific and the Middle East at the BlackRock Investment Institute, at a media conference on Tuesday. The United Arab Emirates (UAE), positioned at the crossroads between East and West, are nonetheless charging into the new year with momentum.Superboom and Global Trade«The Gulf states—particularly the United Arab Emirates (UAE) and Saudi Arabia—are skilfully riding the superboom in artificial intelligence (AI) while steadily diversifying their industrial sectors,» Powell noted.The UAE aims to compete in the top league of the AI world. To that end, the UAE Ministry of Foreign Trade has signed an agreement with Abu Dhabi–based AI company Presight, a subsidiary of the G42 Group, to develop a nationwide AI platform. The goal is to strengthen the UAE’s position as a global trade hub.The head of Dubai ports operator DP World also believes in a future for the Gulf emirates in the new, fragmented world. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said in a media statement on Tuesday: «Global trade is becoming increasingly complex—not less so. Our role is clear: to keep trade moving by understanding where friction exists, anticipating where it may emerge next, and investing in the infrastructure, capabilities and partnerships that help our customers operate more efficiently and reliably.»A Coveted Location for Private BankingAlmost daily, the Gulf state welcomes companies seeking growth by targeting the emerging markets along the New Silk Road. In early January, the Dubai International Financial Centre (DIFC)—the Middle East’s largest banking free zone—attracted Prospera Wealth Management to the Gulf metropolis. The London-based asset manager offers financial planning from its new DIFC office for high-net-worth clients, from home purchases to retirement planning.In Abu Dhabi, UBS and Julius Baer are entering their first full calendar year of operations. The two Swiss banks, present in Dubai for decades, opened branches at the Abu Dhabi Global Market (ADGM) financial free zone at the end of 2025 to expand their private banking business in the region.Arab Bank (Switzerland) Middle East, the newly established regional unit of Geneva-based Swiss private bank Arab Bank (Switzerland) Ltd., received an in-principle approval for an advisory licence from the ADGM financial regulator at the end of 2025. Consultants at Boston Consulting Group estimate private wealth in the Gulf states at 7.5 trillion dollars. Bank of Palestine, based in Ramallah in the West Bank, also established a presence at ADGM at the start of the year.Stock Markets in the BlackInvestors share a similarly optimistic view. Dubai’s benchmark index, the DFMGI, has risen by around five percent so far. Its sister index in Abu Dhabi, the ADXGI, gained two percent by mid-January. The Dubai World Trade Centre and its partner, trade fair organizer Informa, are already jointly considering listing shares on the DFM. «We expect more IPOs in the UAE over the next 12 months,» said Powell of BlackRock. The IMF forecasts economic growth of 5 percent in the UAE in 2026.Weiter zum vollständigen Artikel bei Finews.ch Weiter zum vollständigen Artikel bei Finews.ch