The economies of the Gulf Cooperation Council (GCC) are set to expand at an impressive annual rate of 4% over the next five years, according to Karine Kheirallah, Head of Investment Strategy & Research for the Middle East and Africa at State Street Global Advisors. This growth rate is more than double that of advanced economies, highlighting the region’s economic resilience and potential.
The sustained growth is underpinned by the GCC’s strong presence in global energy markets and government-led initiatives to diversify economies away from oil and gas. Central to this transformation are the Vision programs introduced by each GCC nation, which aim to achieve sustainable economic development and create new growth avenues.
Kheirallah also noted the evolution of GCC equity markets, which have gained significant traction following the inclusion of GCC nations in key global indices such as the MSCI Emerging Markets (EM) Index and MSCI All Country World Index. However, the region remains underrepresented in global benchmarks, signaling untapped potential for growth and increased global recognition.
Financials continue to dominate GCC equity markets, but this concentration is expected to diminish as diversification efforts accelerate. Emerging sectors like healthcare, education, smart infrastructure, renewable energy, and technology are creating new investment opportunities, aligning with the broader economic transformation of the region.
While challenges such as liquidity constraints and geopolitical uncertainties persist, Kheirallah emphasized the GCC’s growing integration into the global financial system. This evolution positions the region as an attractive investment destination offering growth potential and diversification benefits for investors worldwide.
State Street Global Advisors, a leading global asset manager with $4.73 trillion in assets under management, views the GCC’s trajectory as a compelling opportunity for well-diversified portfolios.
