The UAE and Gulf countries are set to outperform the global forecast for this year, bolstered by the domestic multi-year investment cycle in the region.

This is according to First Abu Dhabi Bank’s (FAB) Global Investment Outlook (GIO) 2024 Report entitled ‘Making a positive impact’.

Despite the subdued global recovery and recent geopolitical headwinds, First Abu Dhabi Bank forecasts national and regional growth to be fuelled by the strong demand in tourism, transport, real estate and manufacturing sectors.

The bank forecasts the UAE’s GDP will grow 3.7% in 2023 and 4% in 2024, whilst the GCC’s will rise 3.4% this year, surpassing the IMF’s global forecast of 3.1%, and 2.1% for the US for this year, Trade Arabia reports.

The GIO report looks at the current global economic and investment environment and, focuses on significant macroeconomic trends, and also highlights five key risks for 2024, according to First Abu Dhabi Bank.

These include the US elections, artificial intelligence (AI), climate change, tensions in the Middle East and Africa, and US-China relations.

“Investors will need to remain cautious given the rise and heightened levels of interest rates which will continue to impact economies and geopolitical risks which could increase volatility,” said Michel Longhini, Group Head of FAB Global Private Banking.

“Global economic growth is expected to slow down in 2024. However, our regional markets look resilient, with economic growth expected to pick up, driven by successful economic diversification and reforms.

“In the ESG investing space, Mena markets provide some interesting opportunities along with diversification benefits for global portfolios. This year’s Global Investment Outlook theme — ‘Interest Rate Peaks and ESG Integration: Shaping the Future of Global Asset Allocation’ — identifies these investment opportunities and addresses key issues that will drive returns for investors,” Longhini continued.