The Gulf’s hidden strength: its differences
The easiest conclusion about the Middle East today may be to dismiss it as too risky. It may also be the most mistaken one. Selling the map 2026 will be a landmark year for the Middle East, with a lasting impact on both the region and the world. The first week of March witnessed the biggest market movements, similar to the start of the COVID-19 pandemic in 2020. In those several days of trading,…
The Middle East, often dismissed as too risky, has shown a surprising resilience and diversity in 2026. The region's economies varied greatly, with some experiencing contraction and others growth. This diversity allowed the Gulf to weather market movements better than a single economy could. The United Arab Emirates (UAE) stood out, delivering the strongest returns among the Gulf stock markets over the past fifteen years, and showing resilience in 2026.
Dubai's main index fell 4.7% in early March, but recovered by the end of the year. Foreign investors played a significant role, accounting for 51% of trading value and 71% of new registrations. The UAE's strong position was due to its robust infrastructure, including pipelines and ports, and a credible government with a stable currency.
Despite challenges in sectors like real estate and tourism, Dubai's property sector and toll roads remained resilient. The deeper lesson is that risk is not the same as loss; an economy can look riskier without producing less. Diversity in economies and infrastructure proved to be the key to weathering crises in the region.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
