Regional Conflict Not Undermining UAE's Attraction As A Global Investment Hub

(MENAFN- Khaleej Times) The UAE and the wider GCC are well-positioned to benefit from a new global investment cycle driven by artificial intelligence, infrastructure spending and the growing importance of private markets, senior BlackRock executives said, arguing that investors in the region have a significant advantage as capital increasingly shifts towards long-term structural themes.

Speaking at an industry event in Dubai, Ben Powell, chief investment strategist at BlackRock Investment Institute, said the world was entering a period marked by higher capital expenditure, geopolitical fragmentation and technological transformation, creating opportunities that extend far beyond traditional oil and gas investments.

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He stressed that the current regional situation has not dented investor interest in the region.“We continue to see more and more interest in the region, more and more focus on the opportunities, and at the same time, on the other side of the equation, the opportunities are growing. So be that in the infrastructure, as to one of the questions here, all the way through to public markets, it feels like there's more and more opportunity here, and therefore global capital is becoming incrementally interested,” Powell told Khaleej Times.

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While acknowledging the continuing importance of hydrocarbons to Gulf economies, Powell said future investment flows would increasingly be directed towards sectors such as digital infrastructure, artificial intelligence and energy systems. He noted that the UAE is already emerging as one of the leading global hubs in the AI revolution, supported by government policy, advanced infrastructure and a willingness to embrace new technologies.

“The UAE is absolutely at the forefront of the AI revolution,” Powell said, highlighting the country's sophisticated digital ecosystem and its ability to deploy technology across public services and the broader economy. He argued that investors can no longer afford to view public and private markets as separate investment universes. Instead, portfolios should be constructed around economic themes and long-term exposures, with capital allocated across both public and private assets depending on opportunities and valuations.

That shift is increasing the importance of technology platforms capable of giving investors a consolidated picture of risk and performance across asset classes, according to Ayman Daif. He said the integration of BlackRock's Aladdin platform with private-market capabilities is helping investors gain a unified view of holdings spanning infrastructure, private equity, private credit and public markets.

Daif said one of the biggest challenges in private markets remains access to reliable data and transparency. As private assets become a larger share of institutional portfolios, investors are demanding deeper analysis, more benchmarking and greater visibility into underlying holdings.

“Investors are doing more with less and becoming increasingly selective,” Daif said, noting that due diligence processes are becoming more rigorous while investment decisions are taking longer as institutions seek a better understanding of portfolio risks.

Powell also warned that a higher global cost of capital would create clear winners and losers across regions and sectors. Companies with weak margins or limited pricing power are likely to face greater pressure, while businesses aligned with long-term themes such as AI, energy security and defence could attract growing investor interest.

For the GCC, however, the outlook remains favourable. Powell said the region continues to attract global attention because of its strong economic prospects, strategic investments and ambitious diversification programmes. Despite global volatility, he suggested the UAE in particular is increasingly viewed by international investors as a stable platform for growth in technology, infrastructure and private capital markets.

As global capital adapts to a more complex and fragmented world, both executives argued that the UAE's combination of policy support, digital ambition and investment sophistication places it in a strong position to capture the next wave of opportunities.

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