UAE, Dubai - The Middle East and North Africa region is witnessing the launch of a new phase of capital market growth, driven by increasing foreign investment, expanding debt and equity markets, and the continuation of economic diversification efforts in the region's countries, according to investors, policymakers, and business leaders who met at the 13th Annual Middle East and North Africa Investors Conference, organized by Arqaam Capital.

This year's conference, themed "From Resilience to Market Leadership: Scaling Up Capital in the MENA Region," served as a high-level platform bringing together leading voices in finance, investment, and capital markets across the region. His Excellency Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Coexistence, participated in the conference, along with prominent leaders from regional stock exchanges, financial institutions, sovereign wealth funds, and listed companies.

Over two days, the conference provided an in-depth analysis of the transformations reshaping the investment landscape in the region, through sessions that addressed capital markets, fixed income, venture capital, entrepreneurship, real estate, artificial intelligence, quantitative investment, and index strategies.

The strength and increasing diversification of Gulf economies emerged as a key theme of the conference, with discussions reflecting the region's transformation from traditional resource-based economies to more diversified systems capable of attracting long-term investment. The UAE economy served as a prime example of this transformation. Simon Ballard, Managing Director and Chief Economist at First Abu Dhabi Bank, noted that non-oil sectors now contribute approximately 76% to the UAE's GDP, a clear indication of the success of the country's long-term economic diversification strategy. Speakers also highlighted that foreign direct investment (FDI) inflows to the Gulf region reached approximately US$300 billion between 2019 and 2024, with the UAE attracting more than half of that amount. This success is attributed to the UAE's strong financial position, supportive regulatory environment, and growing ability to attract both capital and talent.

The development of regional capital markets featured prominently in the conference discussions, given the rapid transformations taking place in the region's stock exchanges in terms of liquidity, market depth, and the expanding investor base. During a panel discussion, Hamed Ali, CEO of the Dubai Financial Market (DFM) and Nasdaq Dubai, reviewed the DFM's continued growth indicators, noting that its total market capitalization is approaching AED 1 trillion, while the average daily trading value has surpassed AED 1 billion for the first time.

He noted that foreign investors currently account for 51% of trading activity in the market, while institutional investors represent approximately 70% of trading volumes. Furthermore, the percentage of new investors of foreign nationalities joining the Dubai Financial Market in 2025 reached approximately 84%, a clear indicator of the growing international nature of capital flows into the region's markets.

Regional stock exchange leaders also reviewed a range of initiatives aimed at deepening liquidity, broadening participation, and enhancing market access through market reforms, the development of debt markets, exchange-traded funds (ETFs), and securities lending frameworks, as well as the development of market infrastructure. In Oman, institutional investors now represent approximately 75% of market participation, while trading volumes exceeded OMR 6 billion during the first five months of 2026, already surpassing the total trading volume recorded for the entire year of 2025, which was OMR 5 billion.

Fixed income was another key focus of the conference discussions, with investors discussing the estimated $508 billion in debt maturities in the Gulf Cooperation Council (GCC) countries between 2026 and 2030. Omar Musharraf, Fadi Jundi, and Jad Raouda from Arqaam Capital, along with other participants from the region, explored the opportunities presented by the upcoming refinancing cycle for issuers and investors, given the increasing maturity of regional debt markets. Several speakers noted that GCC fixed income instruments are gaining prominence as a strategic option within global investment portfolios, supported by the strength of sovereign financial positions, robust corporate financial fundamentals, and the expanding base of issuers in the region. Beyond traditional asset classes, discussions also extended to the growing role of artificial intelligence, private capital, entrepreneurship, quantitative easing, and demographic shifts in creating new opportunities across the MENA region. The sessions that brought together venture capital investors and entrepreneurs also addressed the evolving financing landscape for startups in the region, while other sessions explored the growing impact of quantitative strategies and index investing in guiding institutional investment flows.

Dubai's real estate sector emerged as one of the biggest beneficiaries of these investment shifts. During a session titled "Rebuilding the Real Estate Investment Thesis in the Region," Alia Al-Saki, Senior Director of Research at Knight Frank, noted that Dubai recorded approximately 58,000 real estate transactions worth nearly AED 176 billion by the end of April 2026, with off-plan sales accounting for 73% of total activity, while cash buyers continued to dominate the market.

Saki described the current market cycle as the third since 2002, noting that it is entering its fifth consecutive year of growth, increasingly driven by genuine end-user demand rather than short-term speculation. This is reflected in the decline of the resale ratio within twelve months to just 4%, compared to 17% and 25% in the previous two cycles, indicating deeper structural confidence in the market rather than rapid resale activity.

Commenting on the long-term outlook for the real estate sector in the Gulf countries and regional capital markets, Jaap Meier, Partner and Head of Research at Arqaam Capital, said: “While recent geopolitical developments have naturally led to greater selectivity among investors in capital markets, we do not see this as having a long-term impact on the real estate sector in the Gulf countries. The region continues to benefit from strong economic fundamentals, continued population growth, and sustained demand in key markets. We still see promising opportunities for high-quality issuers, and we remain confident that the real estate sector in the Gulf countries will continue to attract investor interest as market conditions stabilize.”

This momentum extends to the upper end of the real estate market, with Dubai accounting for 23% of all global residential transactions exceeding US$10 million in 2025, recording 500 such deals, compared to 326 in New York and 261 in Los Angeles. The emirate also recorded 163 transactions in this category during the first quarter of 2026 alone, its highest quarterly total ever, further enhancing Dubai's appeal to international investors and high-net-worth individuals.

Commenting on the conference, Riad Meliti, CEO of Arqaam Capital, said: “ For more than a decade, investors have viewed the MENA region through the lens of resilience and adaptability. Today, the conference discussions clearly demonstrated that the region has entered a new phase, characterized by scale, liquidity, and the growing sophistication of its capital markets. From fixed income and equities to private equity and technology, the MENA region is no longer merely attracting capital; it is now shaping the future direction of global capital. This year’s conference reflected growing confidence in the region’s long-term trajectory. As economies continue to diversify, capital markets deepen, and opportunities expand, the MENA region continues to strengthen its presence in the global investment dialogue.”

In its thirteenth year, Arqaam Capital Investors Conference for the Middle East and North Africa continues to establish itself as a platform for serious and constructive dialogue between investors, policymakers, business leaders and market participants, to discuss the trends shaping capital markets, investment flows and economic growth across the region.

About Capital figures

Established in 2007 and headquartered in the Dubai International Financial Centre (DIFC), Arqaam Capital is a full-service institutional investment bank focused on emerging and frontier markets in the Middle East and North Africa (MENA) region. With offices in four key markets – the UAE, Saudi Arabia, Egypt, and Lebanon – the firm operates at the heart of the investment corridors connecting the Gulf, the Levant, and North Africa, giving it direct access to the region's most important capital flows.

Arqaam Capital serves more than 1,500 institutional clients worldwide, including sovereign wealth funds, global asset managers, family offices, corporations, and pension funds. The firm also operates one of the largest research platforms in the region, with active coverage of more than 230 companies listed on Middle Eastern and North African stock exchanges, providing global and regional investors with a comprehensive and in-depth view of the activities of listed companies in the region.

Arqaam Capital's capabilities span various areas of corporate business, including asset management, equities, fixed income, investment banking, equity and debt capital markets, structured debt, wealth management, electronic trading, and corporate finance. Through this integrated system, the firm connects global capital to underserved markets, providing international investors with genuine access and in-depth on-the-ground visibility across the Middle East and North Africa region, while simultaneously offering issuers in the region a structured pathway to global capital, adhering to the highest standards of corporate governance.

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