2026 marks a decisive shift in how capital must be allocated as growth diverges, policy recalibrates, and global risk dynamics reset according to FAB’s Global Investment Outlook 2026

First Abu Dhabi Bank (FAB), the UAE’s global bank and one of the world’s largest and safest financial institutions, reports that 2026 marks a decisive shift in how capital must be allocated as growth diverges, policy recalibrates and global risk dynamics reset, according to its Global Investment Outlook 2026, titled “Shifting Currents: Recalibrating Capital Amid a Changing Global Economic Order.”

The report assesses a global environment marked by economic transition, slower and more uneven monetary policy easing, shifting capital flows, and rising geopolitical and technological complexity. Against this backdrop, the Outlook highlights the need for a recalibration of capital and portfolio positioning, identifies the GCC as a relative growth and stability anchor, and provides a disciplined framework for navigating risk while capturing long-term investment opportunities across asset classes and regions.

Key insights from the 2026 Global Investment Outlook include:

Monetary policy recalibration: From a global perspective, 2026 is expected to be characterised by measured and cautious monetary policy. While inflationary pressures have eased from recent peaks, they remain a key risk amid heightened geopolitical uncertainty and ongoing supply-side constraints.

Interest rates: Rate cuts in the United States are expected to proceed at a slower pace than in 2025, as inflation remains the primary macroeconomic risk alongside elevated and unsettled geopolitical tensions.

Cross-asset and regional outlooks: Global economic growth in 2026 is expected to be modest and uneven, with advanced economies expanding at approximately 1.5% while emerging markets, particularly the GCC and Egypt, are expected to outperform, recording growth rates above 4%.

The UAE is forecast to lead regional performance, with real GDP growth projected at around 5.6%, supported by diversification initiatives, structural reforms, and sustained investment activity.

Technological transformation: Technological transformation — particularly the rise of artificial intelligence, automation, and digital platforms — is accelerating structural shifts across wealth and asset management.

Thematic and macro stories: The global macro-outlook for 2026 portrays a global economy that continues to expand, but not evenly. The cogs within the engines of growth are shifting, demand / supply dynamics are evolving, and the margins of safety are narrowing.

Portfolio construction and risk management: Diversification remains the cornerstone of effective portfolio construction and risk management. In an environment defined by structural change and elevated uncertainty, diversified portfolios play a critical role in mitigating downside risk while enabling investors to capture opportunities across market cycles.

Global economic growth: Expected to remain resilient, with global GDP projected to expand by 3.1% in 2026, compared to 3.2% in 2025. At a regional level, the outlook is more constructive, with growth momentum expected to continue, supported by robust expansion in non-oil GDP and ongoing policy reforms.

MENA markets: Expected to offer attractive investment opportunities and play an increasingly important role in providing diversification within global portfolios.

Asset Management Landscape: The Outlook highlights GCCs accelerating institutionalisation, regulatory evolution and growing role in global capital allocation. It examines how asset managers across the GCC are responding to rising demand for professionally managed investment solutions, strengthened governance frameworks, and expanding product breadth.

Andrea Vigano, Executive Chairman, Asset Management at First Abu Dhabi Bank, said: “Despite a shifting global backdrop, 2026 offers compelling opportunities for investors who remain focused, disciplined, and well-diversified. FAB’s Global Investment Outlook 2026 provides practical insights to help clients navigate evolving market conditions with clarity and confidence. Drawing on the bank’s deep expertise and regional perspective, the report translates global macro trends into actionable guidance, empowering clients to rebalance portfolios, manage risk and capture long-term opportunities, with the GCC and the UAE continuing to serve as a key anchor of resilience and growth.”

FAB’s Global Investment Outlook 2026 is designed to support investors and institutions as they navigate a period of transition, reassessing risk, return, and diversification amid a shifting macroeconomic backdrop. The report delivers strategic clarity and actionable insights to support more informed, forward-looking investment decisions. By bringing together perspectives from across FAB’s asset management landscape—including portfolio managers, research teams, investment strategy, and advisory professionals—the Outlook reinforces FAB’s commitment to enabling sustainable value creation and supporting clients across the UAE, the wider region, and global markets.

For more details and insights, the full report can be viewed and downloaded here: https://www.bankfab.com/en-ae/insights/global-investment-outlook/2026-r…