Turning resilience into opportunity in the GCC: trade, capital and infrastructure

Resilience in the Gulf Cooperation Council (GCC) region is rooted in strong balance sheets, policy agility and accelerating diversification. Despite recent challenges, the region has repeatedly demonstrated that strong fundamentals and innovative thinking keep trade and investment flowing.

International trade data support this view. Excluding oil, foreign trade in the United Arab Emirates reached a record AED1.94 trillion (approximately USD527 billion) in the first half of 2026, up 13 .1% year-on-year, reflecting sustained demand across re-exports, manufacturing and services-linked trade.¹ Non-oil exports were up 24%.

As in the past, sovereign wealth buffers and policy agility are helping the region weather today’s challenges by sustaining public investment programmes, keeping credit available to corporates and fast-tracking alternative trade and logistics routes. This includes actively creating opportunities for businesses and investors to participate in privatisations and public-private partnerships, new free-zone and licensing regimes, and foreign ownership and long-term residency reforms — alongside clearer pathways for companies looking to enter the region.

For ambitious companies, the GCC region remains a long-term growth story, underpinned by a proven narrative of ongoing economic development and global connectivity.

The ongoing regional conflict has undoubtedly altered corporate behaviour through 2026, with views still divided on how long the return to normal operations will take. Companies in the Gulf acted prudently, delaying non-essential spending and building liquidity buffers. Some deferred M&A and investment plans until conditions stabilise.

Many businesses are adapting to the changing conditions by reshaping their supply chains to reduce their dependence on imported materials. In one example, HSBC recently expanded a supply chain finance programme for a GCC-headquartered cable manufacturer to support increased local procurement of raw materials for the electric wiring used in major UAE infrastructure projects. Demand for the programme has been strong, allowing the company to boost its operational resilience while supporting local suppliers.

International businesses and global investors continue to view the region’s structural transformation as a long-term strategic growth story.

That confidence has been on display across the financing markets. Recent bond issues from borrowers including the State of Kuwait², Saudi Arabia’s Public Investment Fund (PIF)³, or UAE-based First Abu Dhabi Bank (FAB)⁴ have been heavily over-subscribed, for example.

The USD16 billion lease-and-leaseback monetisation of Kuwait’s pipeline network⁵ – which represents the largest foreign direct investment ever in the country – or the approximately USD30 billion of new projects signed in the UAE in the first quarter of 2026⁶ provide more evidence of international confidence.

GCC countries and the broader Middle East region are looking beyond current disruption and focusing on the solutions that will be needed for the future. This includes a pipeline of capital projects that had reached an aggregate value of USD3.2 trillion across all sectors by 2025.⁷

In the near term, the heightened focus on resilience is turning uncertainty into opportunity.

Governments and private companies are taking innovative approaches to improving the resilience of critical infrastructure and putting in place adaptation measures.⁸ New routes are being found for pipelines; power cables and data centres are being placed underground, where they are less vulnerable.

Projects like these, and the ancillary solutions and services that accompany them, are investment and trade opportunities in and of themselves. Just as importantly, they signal continuity and the region’s ongoing evolution.

Infrastructure remains a key driver of opportunities, as the region builds additional export and logistics routes and continues to diversify beyond fossil fuels. Projects on the table include pipelines, real estate, data centres, port and rail capacity, and battery storage.

HSBC is the largest international bank in the region with a presence spanning 130 years, including 80 in the UAE.⁹

With a physical presence in nine MENAT markets, on-the-ground teams and cross-border coverage connecting to a reliable global banking network, HSBC is well equipped to help businesses in the region navigate changing conditions.

We process over USD100 billion in cross-border payments annually for MENAT-based multinational companies.

The resilience of our global payments network is a key factor in times of uncertainty. Our direct access to the UAE Funds Transfer System (UAEFTS) — the central bank-operated network that settles payments between UAE banks in real time — also gives clients the capability of instant local and cross-border payments.

In addition, our offerings can move seamlessly from conventional to Shariah-compliant, and our dedicated China and India desks in Dubai and Riyadh support key trade corridors with Asia.

The GCC region remains a critical connector, and a growing part of our international network. Our continued investment in the region is a sign of our ongoing commitment and our belief in its long-term prospects. As more international businesses look to expand in the region, we are well placed to serve as a bridge between their international operations and local opportunities.