GCC & UAE Economy & Market Update
May 2026
May 2026's newsletter captures a market where transactions across mergers and acquisitions, industrial investments, startup funding, and stock market listings are setting new benchmarks. The UAE completed a record 207 M&A deals in 2025, and that momentum has carried into 2026 with major moves by sovereign investors like Mubadala and ADNOC, alongside a landmark industrial event "Make it in the Emirates 2026" where over $49 billion in deals and pledges were signed in just four days.
UAE-based startups raised $625.8 million in the first quarter of 2026 capturing two-thirds of all funding across the Middle East and North Africa. Fintech is leading the charge, attracting the most capital for four straight months, while new regulatory moves by the UAE's central bank are making the financial ecosystem even more attractive for investors and entrepreneurs alike.
On the broader economic front, the fundamentals are solid. The UAE's economy grew by 5.6% in 2025, inflation remains low at around 1.3%, and foreign direct investment hit a record $45.6 billion placing the UAE among the top 10 for FDI globally. While geopolitical tensions in the region, particularly around Iran have created some uncertainty, the UAE's neutral diplomatic standing, deep sovereign wealth, and well-capitalized banks continue to make it a safe and attractive hub for capital. The IPO market is also poised for a comeback, with 9-12 new listings expected on UAE exchanges in 2026.
Economy & Market Update
