The economies of the UAE and Gulf countries are set to outpace the global forecast for 2024, propelled by domestic multi-year investments. First Abu Dhabi Bank’s 2024 Global Investment Outlook (GIO) Report, titled ‘Making a Positive Impact,’ highlights this optimistic trajectory.
GDP Expansion
The UAE anticipates a four percent expansion in GDP this year, as outlined in the GIO report. Despite geopolitical challenges and a sluggish global recovery. Robust demand in sectors like tourism, real estate, transportation, and manufacturing is expected to drive national and regional growth. The GCC region is projected to grow by 3.4 percent in 2024. Surpassing the IMF’s global forecast of 3.1 percent and the United States forecast of 2.1 percent.
Macroeconomic Trends
Authored by industry experts, the GIO report delves into the current global economic and investment landscape, offering insights into key macroeconomic trends. It emphasizes the GCC’s reliance on strong growth in non-oil GDP. With a 3.4 percent growth expected in the medium term as countries in the region continue diversifying their economies.
Investment Strategies
In financial markets, FAB advises investors to diversify asset allocations in their portfolios to navigate market and economic volatility expected in 2024. The report suggests constructing defensive portfolios for flexibility. While tailwinds such as higher fiscal spending and rapid disinflation have buoyed global equity markets. The report warns of potential delayed impacts of monetary policy decisions.
Future Growth Prospects
Alongside economic indicators, the FAB GIO considers various trends shaping future growth prospects, including industry-specific focuses. The report also identifies five key risks for 2024: artificial intelligence, the US elections. Tensions in the Middle East and Africa, climate change, and US-China relations.
Expert Insights
Michel Longhini, group head of FAB global private banking. Underscores the importance of cautious investing amidst rising interest rates and geopolitical risks. Despite the global economic slowdown projected for 2024, regional markets appear resilient, driven by successful economic diversification and reforms.
ESG Investing Opportunities
Longhini highlights the ESG (Environmental, Social, and Governance) investing space in MENA markets. Offering intriguing opportunities and diversification benefits for global portfolios. This year’s GIO theme, ‘Interest Rate Peaks and ESG Integration: Shaping the Future of Global Asset Allocation. Identifies these opportunities and addresses key issues driving returns for investors. FAB clients can leverage the collective insights of economists and investment professionals for informed decision-making.
