Global investors see compelling case for GCC investment

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Investors are increasingly drawn to the Middle East due to a wave of economic reforms and the robust development of regional capital markets, according to Nabeel Albloushi, HSBC’s regional head of markets and securities services for the Middle East North Africa and Türkiye (MENAT) region.

Mr Albloushi spoke at the recent HSBC MENAT Future Forum, the largest private gathering in the region of international investors, regulators, exchanges, and other market participants.

Held in Meydan, Dubai, the event marked its eighth year and attracted a record 800 delegates. Representatives from each GCC market joined global investors to discuss investment opportunities throughout the region.

“The pace of reforms in the Middle East has been remarkable, and stakeholders across each market have a compelling story to tell international investors,” Mr Albloushi said. “The region boasts strong growth, healthy public finances, favourable demographics, and lower inflation compared to many other parts of the world.”

A series of reforms aimed at liberalising access for international investors, creating new hedging instruments, and boosting institutional investor participation have triggered billions of dollars in foreign capital flowing into the region’s asset markets.

These reforms have also led to the inclusion of key regional equity markets in prominent benchmark indices tracked by major mutual and pension funds, paving the way for further inflows of long-term capital.

“Our annual forum offers exclusive insights into the regulatory environment, investment trends shaping the MENAT economy, innovation within financial markets, and sustainability practices,” said Joseph Ghorayeb, chief executive of HSBC Bahrain.

“We were honoured to have representatives from the Bahrain Bourse, Bahrain Clear, and the Central Bank of Bahrain participate in the event. They provided valuable perspectives on Bahrain’s evolving regulatory landscape, key enhancements related to the Delivery Versus Payment (DVP) model, and other upcoming market improvements.”

Discussions across the four-day forum highlighted several key themes. These included the growing influence of global geopolitics, the improved regulatory and investment ecosystem, the rise of sustainability-linked issuances, the importance of establishing common sustainability standards, and how regulations can effectively oversee the expanding role of blockchain technology in the financial sector.