Executive Summary
GCC markets witnessed a modest decline in April 2025 despite a sharp drop in oil prices, supported by strong Q1 2025 earnings from GCC banks. UAE markets outperformed during the month, while Saudi Arabia’s equity index dipped by 2.9%. GCC economies are likely to face collateral damage from the tariff tantrums between the U.S. and China, as weakening oil prices and rising global yields are likely to mount pressure from the fiscal side. While re-routing of trade could benefit countries like the UAE in the short term, the effects are likely to be short lived. Dubai’s real estate market has stood out in the past few years, registering stellar growth despite economic and market uncertainty. Interestingly, the correlation between Oil prices and Dubai real estate has remained weak in the past decade, positioning Dubai as a well-diversified economy amongst global investors. The investment playbook of family offices in the Middle East has evolved lately, with allocation being split evenly between traditional and alternative assets. Private Equity and Real Estate reign supreme within the alternative space, while Gold remains relatively underweight despite its stellar rally.
