Global Markets: Recovery Signs … and strong gains for Gulf stock exchanges

Economic researcher Mahmoud Jamal Saeed confirmed that the global financial markets witnessed in 2024 a remarkable improvement after the effects of the pandemic, with inflation declining to 4% from 5.9% in 2023.

He pointed out that the American economy showed a relative force, despite the high interest rates, as it maintained sustainable growth. Meanwhile, European markets have shown meager growth, due to the pressure on energy prices. In Asia, India was at the forefront of emerging markets, with economic growth exceeding 6.8%, and a joke of Saeed.

Gulf Markets: strong gains

Saeed explained that the Gulf stock exchanges, especially in Saudi Arabia and the UAE, witnessed a strong year in 2024, driven by the rise in oil prices and the increase in government spending in infrastructure projects.

In the same context, he pointed out that the Gulf economy, with expectations to grow by 3.3-3.4% in 2025, will remain one of the most attractive points for investors in the Middle East.

Global market expectations in 2025

Saeed said: “The global economy is expected to maintain a moderate growth of 2.8% in 2025, with inflation declining to 3.4%, allowing central banks around the world to gradually reduce interest rates.”

He added that the growth in the United States will be more slow to reach 1.9%, while China maintains a growth momentum of up to 4.8%, while Europe records a weak growth of 1.3%.

India and Pakistan: main engines for growth

Saeed pointed out that “Hind leads the global economic scene with a expected growth of 6.5% in 2025, supported by continuous economic reforms and increasing foreign investments.” He also pointed out that Pakistan, despite political and economic challenges, will witness growth at 3.5%, with strong support from international financing and improving the investment environment.

Promising sectors in 2025

Saeed said: “The energy sector, including oil, in addition to precious metals such as gold, will be one of the most profitable sectors in 2025.”

He explained that gold is expected to witness a record increase with its records of more than $ 3500 an ounce, especially in light of the continued global trade tensions and the increase in central bank purchases.

Digital momentum in the Gulf

Saeed added, “The Gulf states are witnessing a wide digital shift, with increasing dependence on technology and financial services, including technologies such as blockchain,” Said added.

He stressed that the issues of sukuk and bonds in Saudi Arabia witnessed a tangible rise, which reflects the strength of the financial sector in the region, noting that these sectors will be major growth engines in the coming years.

Health care and construction: government investments driven by social development

Saeed said: “The health care and construction sector is expected to witness significant growth in 2025, thanks to the investments of Gulf governments in these vital sectors.”

How do investors prepare for 2025?

He said: “Mother 2025 requires a balanced investment strategy that takes into account global challenges and local economic changes.”

He pointed out that the bonds and Gulf bonds are one of the most prominent investment tools at this stage, in addition to the gold that remains safe.

He added that reducing interest rates in the second half of the year will enhance the attractiveness of shares, and the need to distribute assets will remain the key to reducing risks amid economic fluctuations.

The aspirations of 2025 from a global perspective

In its report issued in January 2025, Goldman Sachs said: “The global economy is expected to achieve a growth ranging between 2.7% and 2.8% in 2025, driven by the growth of emerging markets, especially India, which is expected to achieve 6.6%.” The report indicated that inflationary pressures will decrease to 3.3-3.4%, which contributes to reducing interest rates, which will enhance demand for stocks in the market.

The Morgan Stanley report indicated that global inflation will decrease to 3.3-3.4%, which will allow central banks in the world to gradually reduce interest rates. This dynamic will contribute to enhancing the attractiveness of stock markets.

For its part, Bloomberg reports indicated that “the Gulf economies, led by Saudi Arabia and the UAE, will grow by 3.4% in 2025, driven by structural reforms and increase oil prices.”

Volatile

Saeed said: “The year 2025 carries promising investment opportunities, especially in the Gulf and Indian markets, but success requires fully awareness of potential challenges and political and economic changes on the global stage.” He stressed that investment diversification and willingness to deal with fluctuations will be the main key to achieving sustainable returns.