Why Foreign Capital Is Moving to the GCC

Looking ahead, optimistic projections for a healthy IPO pipeline across the Gulf over the next 12-18 months appear. This optimism is buoyed by relieving geopolitical stress, which have previously impacted market confidence. Even generally quieter markets are showing signs of activity, exemplified by Kuwait's anticipation of an uncommon convenience-store IPO.

Overall, as regional markets continue to evolve, they show the wider economic and geopolitical narratives at play, providing both obstacles and chances for financiers engaging with the Middle East.

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Strategic Asset Planning for the 2026 Market

With new attacks, optimism that the region's tensions would be dealt with in a short amount of time faded, leaving concerns about the possible long-lasting impacts of the disputes on economies. Iran's retaliation, targeting Gulf countries and strategic facilities, has a direct influence on market characteristics. Serious variations happened in the markets of Gulf countries with the increasing danger perception, while sharp boosts stuck out in nation risk premiums.

The nation's threat premium increased by around 140 basis points to 392. Bahrain's threat premium increased by 84 basis points to 297, while Qatar's risk premium moved up by 13 basis points to 45 in the very same period.

Saudi Arabia's threat premium stopped by around two basis points to 80.4 in this process. Experts stated Saudi Arabia experienced relatively less effect from this scenario thanks to its strong forex incomes. Stock markets in the Gulf followed a mixed trend, while the UAE stock market ended up being the one that fell the most since the start of the disputes that started with the US and Israeli attacks on Iran and spread out to other nations in the area.

Shares of petrochemical and energy companies in the area, following a mostly positive trend in parallel with the rise in oil prices, slowed the decline in the indices. Offering pressure continued to be effective in the markets in the UAE, Bahrain, Qatar, and Kuwait, where intense airstrikes happened. Concerns about the nation's security triggered a drop in property and financial investment company shares on the UAE stock market.

Airstrikes on energy facilities and lines, which intensified following market closures, were not yet priced into regional markets. Targeting some oil centers in the conflicts and decreasing maritime traffic in the Strait of Hormuz, which has vital value for oil shipments, increased energy expenses and fueled international inflation threats upwards.

ANSR July GCC PRs 50DR+

Essential Capital Planning for the 2026 Market

The Central Bank of the UAE (CBUAE) and the Reserve Bank of Kuwait (CBK) announced that their banking systems remained resistant. The CBUAE approved the "Financial Institutions Durability Bundle," which is supported by the reserve bank's one trillion dirhams ($ 270 billion) possession and aims to reinforce the banking sector's stability in the face of exceptional conditions in worldwide and local markets.

The 5 main pillars of the bundle objective to increase banks' access to financial liquidity and versatility to support the UAE economy. Managing forex reserves going beyond one trillion dirhams ($ 270 billion) and a monetary base coverage ratio of 119%, the bank confirmed the strong fundamentals of the UAE's 5.4 trillion dirhams ($ 1.47 trillion) banking sector.

ANSR July GCC PRs 50DR+

A statement from the Reserve bank highlighted that local banks continued to provide all banking services efficiently and reliably, even under present conditions. The statement said this success arised from banks strengthening their danger management systems, developing company continuity and emergency situation strategies, improving their digital facilities, and performing regular exercises mimicing possible circumstances in line with the Central Bank's regulations.

Goldman Sachs, among the major US banks, predicted that the economies of Qatar and Kuwait could deal with a 14% contraction as oil shipments would decrease in a situation where the Strait of Hormuz remained closed for two months.