Bahrain - Investors in Bahrain maintain a predominantly positive-to-neutral outlook on the local investment climate, according to the fifth annual investor return assessment survey published by SICO, a leading regional asset manager and investment bank with a direct presence in the kingdom.

The report, which gathered insights from 228 C-suite executives, fund managers, and institutional investors across the GCC in October, found that a combined 77 per cent of Bahraini respondents share a positive or neutral sentiment regarding the market’s prospects for 2026.

The survey highlighted several key return expectations and market views.

For fixed income, Bahraini investors expect an annual return of 6pc for 10-year US dollar government bonds, a slightly higher requirement than that of peers in Saudi Arabia, the UAE, and Qatar (5pc). Required returns for private equity in Bahrain are generally around 13pc or higher, consistent with expectations across all GCC markets. Across the region, equities remain the most preferred asset class (55pc preference) for generating risk-adjusted returns, followed by fixed income and real estate. Investors across the GCC are seeking 9-12pc for listed equities in 2026. Geopolitical tensions, inflation, and interest rates remain the primary concerns impacting the investment landscape for the next year.

SICO Group chief executive officer Najla Al Shirawi commented on the findings: “The survey results highlight the continued confidence in, and ongoing development of, the investment environment across the Gulf region, as well as its resilience in sustaining growth despite global uncertainties.”

She added that the report serves as a roadmap for identifying suitable investment opportunities in a changing market landscape, reinforcing SICO’s commitment to supporting clients with tailored solutions. The highest investor confidence was recorded in the UAE (79pc) and Saudi Arabia (72pc), driven by structural reforms and robust economic outlooks. 

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