A New Anchor in Emerging Markets: The Middle East’s Growth Story

As Dubai cements its role as a global capital for trade, innovation, and investment, Jefferies once again brought together leading corporates and investors from across Asia, the Middle East, and South America for its second annual GEMS (Global Emerging Markets) Conference, held November 24–25, 2025.

Following a successful debut in 2024, the conference has quickly become one of the region’s most anticipated investor gatherings, featuring one-on-one meetings and focused conversations with C-suite leaders from across emerging markets.

Among the featured speakers were Mohit Kumar, Jefferies’ Chief Financial Economist and Strategist for Europe, and Naresh Bilandani, Head of Central & Eastern Europe, Middle East, and Africa (CEEMEA) Equity Research. This article aggregates their insights on how macro conditions, demographic trends, and an influx of foreign capital have positioned the Middle East as one of the world’s essential investing hubs.

How the Middle East Became Impossible to Ignore

For global investors, the Middle East has moved firmly into the center of emerging-market (EM) discussions. As Mr. Bilandani put it, “Middle East markets cannot be ignored in context of the broader emerging market space.” GCC markets now represent roughly 6.5% of MSCI EM, nearly matching Latin America.

Investors have taken notice of the region’s macro stability, increasingly sophisticated policy environment, and long-term strategic planning. These factors are compelling — and they’ve helped distinguish the region from other EMs and, at times, even the United States.

In conversations with Asian investors looking to allocate outside the U.S., Mr. Kumar reports that the Middle East is the new favorite target: “We have seen a lot of capital inflows, and that phenomenon is likely to continue over the coming quarters.”

The Region’s Core Appeals

Macroeconomic predictability is central to the Gulf’s investment case. Strong fiscal positions, high-quality sovereign balance sheets, and the long-standing dollar peg give investors clarity on inflation, FX risk, and monetary-policy transmission.

Mr. Bilandani emphasized that the peg “offers (investors) a hedge in a volatile interest rate environment,” a structural advantage that sets the region apart from the wider EM universe.

Demographics add another layer of support. Saudi Arabia and the UAE continue to report fast population growth, and the countries’ labor-force participation is expanding meaningfully. “Women as a part of the workforce have increased… to as high as 36% over the past ten years,” Mr. Bilandani noted. These shifts support long-term consumption, housing needs, and household formation.

The credit backdrop is equally constructive. As Mr. Kumar explained, “We haven’t had yields this attractive for a very long time,” at a moment when central banks across EM remain poised to ease.

The Key Sectors Benefiting From the Middle East’s Growth

The convergence of strong demographics, policy ambition, and capital inflows has created momentum across a range of sectors. Healthcare, real estate, and infrastructure all stand to benefit from rising population growth and higher workforce participation, Mr. Bilandani predicted.

Technology and tourism also show great promise. In tourism, both Saudi Arabia and the UAE are pursuing aggressive near- and long-term growth. In technology, both countries are seeing steadily expanding venture activity and a growing pipeline of startups. Dubai’s goal of cultivating 30 global unicorns over the next decade reflects the region’s intent to build competitive, innovation-led industries rather than rely solely on legacy sectors.

A Region with Global Ambition

As the region continues to deepen its capital markets, expand its technology base, and attract rising foreign capital, Jefferies expects the Middle East to remain a focal point for investors searching for durable growth and policy stability in an evolving EM landscape.

“Overall, we are very positive,” Mr. Kumar said in his closing remarks. “We are highly invested in the Middle East — this is the growth opportunity. And we think equities and credit will continue to perform.”