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| The survey showed Gulf stock returns between 9% and 12% by 2026 |
The survey showed expectations of Gulf stock returns ranging between 9% and 12% during 2026.
Sawsan Abdel Latif, a financial analyst at SICO Bank, confirmed that the bank's annual report showed continued optimism among investors in the Gulf region regarding expected returns from various asset classes, including listed stocks, private equity, real estate, cash deposits, and government bonds.
Abdel Latif said that this survey, conducted by SICO for the fifth consecutive year, included 228 participants from various investor segments in the region and revealed a strong positive outlook for the Saudi and Emirati markets.
She explained that optimism regarding the Saudi market is supported by investor confidence in ongoing government reforms, while the positive outlook for the Emirati market is based on population growth and the expanding tourism sector, as well as the Kuwaiti and Omani markets.
She added that the survey revealed expectations of a 9% to 12% return on investments across the region, with higher optimism for the Saudi and Emirati markets compared to the rest of the Gulf markets.
She noted that attractive economic policies for investment, particularly in the UAE real estate sector, have bolstered this outlook. She pointed out that private equity and real estate offer greater growth opportunities, despite their limited liquidity, leading investors to expect higher returns relative to the perceived risks.
She explained that expected returns in the markets range between 7% and 10%, with a particularly positive outlook for the UAE market, followed by Saudi Arabia, while government reforms in Kuwait are strengthening investors' outlook.
She stated that the establishment of new city projects and infrastructure development in these countries have clearly contributed to boosting investor confidence and driving optimism towards the region's markets.
SICO announced the release of its fifth annual investor survey report, which reviews economic forecasts and expected returns for various asset classes for investors across the Gulf countries. Investors in the region expressed optimism regarding the economies of the UAE and Saudi Arabia, with 79% and 72% of respondents, respectively, holding a positive outlook.
Saudi Arabia continued to strengthen its position as a robust investment destination, supported by tangible structural reforms and an ongoing economic transformation process. According to SICO's analysis, expected returns on listed equities over the next 12 months ranged from 9% to 12% by 2026.
Regarding 10-year US dollar-denominated government bonds, expected returns for GCC-issued government bonds ranged from 5% in Saudi Arabia, Qatar, and the UAE to 6% for Kuwaiti, Bahraini, and Omani bonds. As for income-generating real estate, expected returns were similar to the previous year, ranging from 7% to 10% across all GCC countries.
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