Investors in the UAE are well positioned to navigate an increasingly complex global investment landscape in the second half of 2026, supported by resilient regional fundamentals, stabilising oil markets and abundant liquidity, according to Standard Chartered’s latest Global Market Outlook.
The bank’s Wealth Solutions Chief Investment Office (CIO) remains constructive on risk assets despite persistent geopolitical uncertainty, expecting the global economy to achieve a soft landing while offering attractive opportunities across equities, fixed income and alternative investments.
Launched this week at investment forums in Dubai and Abu Dhabi, the report projects the US S&P 500 Index to climb to 7,950 and gold to reach $5,100 an ounce by mid-2027, reflecting continued confidence in equities as the primary engine of portfolio growth while reinforcing bullion’s role as a strategic hedge against market volatility.
The optimistic outlook comes as global equities have already gained more than 12 per cent so far this year, powered by resilient corporate earnings, continued artificial intelligence-driven investment and easing fears of a global recession. However, the bank cautioned that investors should prepare for greater market volatility as financial markets adjust to shifting energy prices, rising equity issuance, changing investor positioning and evolving central bank policies.
For investors across the UAE and the wider Middle East, the report says regional fundamentals remain considerably stronger than many developed markets. The easing of geopolitical risk premiums following the interim US-Iran agreement, coupled with relatively stable oil prices and healthy fiscal balances across Gulf economies, continues to support liquidity and investor confidence.
Although the reopening of regional energy supply routes is expected to ease some pressure on crude markets, Standard Chartered believes oil prices are unlikely to return quickly to levels seen at the beginning of the year. The gradual recovery in production, shipping flows and inventory rebuilding is expected to keep prices supported, helping Gulf economies maintain healthy public spending while limiting inflationary pressures.
Against this backdrop, the bank continues to recommend an overweight allocation to global equities, with a preference for US stocks and Asia excluding Japan, where long-term earnings growth and technology-driven expansion are expected to remain robust. It also sees selective opportunities in emerging-market US dollar bonds, supported by attractive yields and improving macroeconomic fundamentals, while maintaining a positive outlook on gold as an effective portfolio diversifier.
Ayesha Abbas, managing director and head of Affluent and Wealth Solutions, Europe, Middle East and Africa, and UAE at Standard Chartered, said investors in the UAE are entering the second half of the year from a position of strength.
“The region continues to benefit from supportive liquidity conditions and the stabilisation of oil markets. In this environment, we are seeing strong demand for diversified portfolios that balance growth opportunities in global equities with income strategies such as emerging-market US dollar bonds, alongside gold as a strategic hedge,” she said.
She added that internationally diversified portfolios would remain critical as investors navigate shifting monetary policies and geopolitical developments.
The bank’s outlook broadly aligns with the views of several global investment houses that expect global growth to remain resilient despite elevated geopolitical risks. While central banks are likely to remain cautious on interest-rate decisions, moderating inflation and improving corporate earnings are expected to continue supporting financial markets over the medium term.
For Gulf investors, the combination of strong regional liquidity, robust sovereign balance sheets and sustained infrastructure spending provides an additional layer of resilience. Together with continued global demand for artificial intelligence, technology and quality growth stocks, these factors are expected to underpin investment opportunities well into 2027.
Standard Chartered said remaining invested through market cycles, maintaining broad diversification and focusing on long-term structural themes would be essential for investors seeking to navigate an increasingly uncertain global environment while capturing opportunities across asset classes.
