MENAT GDP to reach $4trn by year-end: HSBC research
The Middle East is at the centre of a fundamental transformation as global capital flows shift towards new engines of growth.
Selim Kervanci, Chief Executive Officer, Middle East, North Africa and Türkiye (MENAT), HSBC Bank Middle East, said: 'Traditional financial centres are adapting to a world where the Middle East and Asia are driving rather than following global investment trends.'
Kervanci was speaking this week at the HSBC MENAT Future Forum, held in the Four Seasons, Jumeriah, Dubai. In its ninth year, the forum is the region's largest private gathering of international investors, regulators, exchanges, and market participants. With attendance at an all-time high, topping the 800 attendees of 2024, delegates from MENAT markets gathered with global investors to discuss opportunities in the region, and particularly its growing corridor with Asia.
Commenting on current liquidity conditions, Kervanci said: 'Public and private markets are reshaping investment and capital flows with the Middle East and Asia emerging as the new centre of gravity. Structural reforms across the Middle East, coupled with agile policymaking, have fundamentally altered the region's investment landscape. The growing opportunities in the two regions are creating one of the most significant shifts in the global economy, driven by the Middle East's investment-led economic transformation, the GCC and Asia's rising wealth and the necessity of transitioning to sustainable economies.'
While traditional markets wrestle with economic headwinds, an unprecedented $3 trillion in capital spending across the Gulf Cooperation Council is recalibrating the global investment landscape. According to HSBC Global Research, MENAT could see the average pace of growth rise to above 3.5% this year, up 1.4 percentage points on last year's average. This should lift MENAT GDP to almost $4 trillion by the end of 2025, up more than 40% on its pre-Covid-19 level.
Speaking at the forum, Nabeel Albloushi, HSBC's Head of Markets and Securities Services MENAT, said: 'The question is no longer whether to invest in the region, but how to optimise exposure to its historic transformation. The growth in primary market activity is a key indicator, with significant issuances in both the equity and debt capital markets. This trend persisted even when global markets experienced slowdowns, highlighting investor confidence.'
Over the three days, participants took part in 1-1 investor meetings in addition to panel discussions with CEOs, Heads of Financial Market Intermediaries, Securities Regulators and experts from across HSBC's global network for discussions focused on innovation, the development of capital markets and AI's expanding role.
In a step change to previous years, HSBC gathered market leaders in the luxury consumer market to explore opportunities in a sector expected to generate over $20 billion by the end of the decade, almost doubling in size over 10 years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Trade Arabia
07-05-2025
- Trade Arabia
GCC economic outlook remains strong: HSBC
The economic prospects for the Gulf Cooperation Council (GCC) region, particularly the UAE, remain strong despite global headwinds, Simon Williams, Chief Economist for Central and Eastern Europe, Middle East and Africa at HSBC, has said. Speaking to the Emirates News Agency (WAM) on the sidelines of the third MENA Capital Markets Summit, Williams noted that the UAE entered 2025 with solid economic momentum driven by rising consumption and investment—factors expected to persist in the near term. He highlighted that Gulf state budgets remain robust and that structural reforms implemented over the past five years have enhanced long-term growth potential, enabling resilience to external shocks. Williams projected that non-oil GDP in the UAE would grow by between 3.5 and 4 percent in both 2025 and 2026, calling it a strong performance by global standards. On global trade tensions, he stated that there are no winners in ongoing trade wars and tariffs, which disrupt global growth. He said long-term shifts in global trade may prompt companies to reassess foreign direct investment strategies and capital allocation. Regarding FDI into the UAE, Williams said inflows remained strong over the past three years, accounting for 4 to 5 percent of GDP, a notably high level by global comparison. Commenting on the Capital Markets Summit, he said the event is a key platform that brings together policymakers, market participants, financial institutions and corporates to discuss current dynamics, emerging opportunities, and vulnerabilities. During the summit, HSBC UAE released a report titled 'Strategy to Scale: Dubai's Blueprint for Capital Market Growth', underscoring the role of capital markets in achieving Dubai's ambition of becoming one of the world's top four financial centres. Produced in partnership with Dubai Financial Market (DFM), the report serves as a guide for new investors and outlines how accelerated internationalisation of equities and bonds, along with sweeping structural reforms, are bringing Dubai closer to its 2033 economic vision. The report explores the expansion and global reach of Dubai's capital markets, including potential improvements in deal flows, secondary market liquidity, and tech-driven financial infrastructure. Between 2016 and 2024, DFM delivered annualised returns of 4.9 percent in US dollars, outperforming the broader MSCI Emerging Markets Index, which posted 2.8 percent. By the end of 2024, foreign investors accounted for half of DFM's total trading activity and 85 percent of registered investors, underscoring Dubai's global appeal. The number of wealth and asset managers operating in Dubai International Financial Centre (DIFC) rose by 16 percent year-on-year to 410 in 2024, including 75 hedge fund managers -- 48 of whom oversee assets exceeding US$1 billion. In 2024, Dubai captured 2.2 percent of global IPO activity, including the public listing of Talabat, the on-demand food, grocery and retail delivery platform. The listing marked the largest tech-sector IPO globally that year.
Trade Arabia
02-03-2025
- Trade Arabia
MENAT GDP to reach $4trn by year-end: HSBC research
The Middle East is at the centre of a fundamental transformation as global capital flows shift towards new engines of growth. Selim Kervanci, Chief Executive Officer, Middle East, North Africa and Türkiye (MENAT), HSBC Bank Middle East, said: 'Traditional financial centres are adapting to a world where the Middle East and Asia are driving rather than following global investment trends.' Kervanci was speaking this week at the HSBC MENAT Future Forum, held in the Four Seasons, Jumeriah, Dubai. In its ninth year, the forum is the region's largest private gathering of international investors, regulators, exchanges, and market participants. With attendance at an all-time high, topping the 800 attendees of 2024, delegates from MENAT markets gathered with global investors to discuss opportunities in the region, and particularly its growing corridor with Asia. Commenting on current liquidity conditions, Kervanci said: 'Public and private markets are reshaping investment and capital flows with the Middle East and Asia emerging as the new centre of gravity. Structural reforms across the Middle East, coupled with agile policymaking, have fundamentally altered the region's investment landscape. The growing opportunities in the two regions are creating one of the most significant shifts in the global economy, driven by the Middle East's investment-led economic transformation, the GCC and Asia's rising wealth and the necessity of transitioning to sustainable economies.' While traditional markets wrestle with economic headwinds, an unprecedented $3 trillion in capital spending across the Gulf Cooperation Council is recalibrating the global investment landscape. According to HSBC Global Research, MENAT could see the average pace of growth rise to above 3.5% this year, up 1.4 percentage points on last year's average. This should lift MENAT GDP to almost $4 trillion by the end of 2025, up more than 40% on its pre-Covid-19 level. Speaking at the forum, Nabeel Albloushi, HSBC's Head of Markets and Securities Services MENAT, said: 'The question is no longer whether to invest in the region, but how to optimise exposure to its historic transformation. The growth in primary market activity is a key indicator, with significant issuances in both the equity and debt capital markets. This trend persisted even when global markets experienced slowdowns, highlighting investor confidence.' Over the three days, participants took part in 1-1 investor meetings in addition to panel discussions with CEOs, Heads of Financial Market Intermediaries, Securities Regulators and experts from across HSBC's global network for discussions focused on innovation, the development of capital markets and AI's expanding role. In a step change to previous years, HSBC gathered market leaders in the luxury consumer market to explore opportunities in a sector expected to generate over $20 billion by the end of the decade, almost doubling in size over 10 years.
Trade Arabia
25-02-2025
- Trade Arabia
HSBC to set up Centre of Excellence in Al Ain
HSBC has announced its plans to establish a Centre of Excellence in Al Ain, UAE. This strategic initiative, launched in partnership with the Abu Dhabi Department of Economic Development (ADDED), is aligned with the UAE and Abu Dhabi government's vision to develop local talent and increase the employment of UAE nationals in the financial sector. Set to be operational by end of 2025, the centre will serve as a hub for the bank's key functions and operations, such as collections and recovery, client services, and customer experience while also offering training and skills development for UAE nationals in Al Ain. The centre will play a pivotal role in equipping Emiratis with the skills to thrive in the financial sector while continuing to deliver exceptional services to our clients, said an Emirates News Agency (WAM) report. HSBC is collaborating with the UAE Central Bank and Nafis, the Emirati Competitiveness Council, on strategic initiatives to support the UAE's goal of increasing employment opportunities for UAE nationals in the private sector. Moustafa Raouf, Country Head of HR, UAE, HSBC Bank Middle East, said: 'The UAE holds significant strategic importance for HSBC globally, and we have aligned our strategy with the country's ambitious economic transformation plans to unlock growth. Our new Centre of Excellence in Al Ain is not just an investment in infrastructure but an investment in people, and our future generation. We are proud to support the initiatives of the UAE Central Bank and NAFIS to empower Emiratis and create meaningful career opportunities in a sector that is the backbone of any thriving economy. This centre will be a cornerstone of our ongoing commitment to nurturing local talent.' Mouza Obaid Al Nasri, Executive Director of the SMEs Sector at ADDED, said: 'We are pleased to partner with HSBC to provide quality job opportunities for UAE nationals, and appreciate their contribution to nurture talent development in Al Ain, and upskill our future leaders. This initiative is in line with our efforts to enable UAE nationals benefit from promising opportunities in various sectors, contributing to economic growth and diversification in the Emirate of Abu Dhabi. As we continue to expand our partnerships, we aim to equip UAE talent with the skills and opportunities needed to propel Abu Dhabi's transition towards a more resilient, knowledge-based economy.'
