The Middle East is on track to attract more than $100 billion (Dh370 billion) a year in major investments by 2026, spanning energy, renewables, healthcare, digital infrastructure and manufacturing, according to a new industry outlook by Grand View Research (GVR).

Despite the global shift towards cleaner energy, the region, led by the UAE and Saudi Arabia, is expected to remain a global powerhouse in oil and gas, while rapidly scaling renewable energy, digital transformation and healthcare innovation.

Oil and gas remain central, with a tech-driven twist

The UAE and its Gulf neighbours currently account for around 30 per cent of global oil production and 17–18 per cent of gas output, cementing the region’s role as a key energy supplier.

While global oil demand growth is expected to remain modest through 2026, gas demand is forecast to rise by around 3.5 per cent, driven by power generation, industrial expansion and LNG exports.

“The Middle East’s oil and gas sector remains a market anchor, but technology adoption and LNG expansion will define competitiveness over the next few years,” said Swayam Dash, Managing Director at Grand View Research.

Across the UAE, producers are increasingly deploying AI, IoT, drones and robotics to cut costs and improve operational efficiency, alongside investments in carbon capture, storage and early-stage hydrogen projects under the UAE Energy Strategy 2050.

Renewables and battery storage gain pace

Renewable energy is expanding rapidly across the Gulf, with falling solar auction prices making clean energy increasingly competitive. Both the UAE and Saudi Arabia are mandating battery storage alongside new solar and wind projects, helping stabilise power grids as renewable capacity grows.

Dubai has announced plans for multi-gigawatt renewable additions by 2030, while Saudi Arabia continues to roll out large-scale solar and hydrogen projects under Vision 2030.

Healthcare becomes an economic growth engine

Healthcare is also emerging as a strategic investment sector. In 2023, Dubai welcomed more than 690,000 medical tourists, generating over Dh1 billion in healthcare revenue and boosting related sectors such as hospitality and travel.

The UAE’s National Digital Health Strategy, which integrates platforms like Riayati, Malaffi and Nabidh, has consolidated more than 1.9 billion medical records across 3,000 facilities, positioning the country as a regional leader in digital healthcare.

Data centres, cloud and advanced manufacturing

Digital infrastructure is another major growth driver. The GCC data centre market is expected to grow at around 13 per cent annually through 2030, with the UAE and Saudi Arabia accounting for up to 70 per cent of new capacity.

Cloud adoption is accelerating too, with nearly 75 per cent of organisations expected to rely mainly on cloud platforms by 2026, boosting demand for cybersecurity, AI and enterprise digital tools.

By 2026, GVR expects the region’s economy to reflect balanced diversification, combining energy leadership with rapid growth in renewables, healthcare, digital systems and advanced manufacturing.

“The scale of investment shows how the Middle East is shifting from resource reliance to technology-enabled growth,” Dash said.

Abu Dhabi has launched a $2 billion Global Water Platform aimed at strengthening water and food security in developing countries and expanding access to clean and safe water worldwide.

Developed by the Abu Dhabi Fund for Development (ADFD), the initiative will support high-impact water projects while championing innovative technologies and sustainable solutions for water resource management.

Goal to reach 10 million beneficiaries

The platform plans to mobilise $2 billion (Dh7.34 billion) in funding from local and international financing institutions. Its first phase will allocate $1 billion (Dh3.67 billion) over five years, from 2026 to 2030, to reach around 10 million beneficiaries globally.

The initiative aligns with the UN Sustainable Development Goal 6, which focuses on ensuring universal access to clean water and sanitation while promoting inclusive and resilient development.

Mohamed Saif Al Suwaidi, Director-General of ADFD, called on local and international partners to collaborate through joint financing, strategic partnerships and knowledge exchange to accelerate solutions that enhance water security and empower developing nations.

Fatima Ateeq Al Mazrouei, Support Services Department Director at ADFD, said the initiative will also finance innovative programmes, support scientific research and youth-led initiatives, and organise awareness campaigns focused on water-related challenges.

Why it matters to investors

• Defensive, long-term asset class: Water infrastructure and security projects offer stable, long-duration returns backed by essential demand and government support.
• $2bn capital mobilisation opportunity: Abu Dhabi’s platform signals a sizeable pipeline of bankable projects, co-financing opportunities and public-private partnerships across developing markets.
• Climate-resilient growth sector: Rising water scarcity, population growth and climate pressure are driving sustained global investment into water, sanitation and food security solutions.
• Policy-aligned investment: The platform aligns with UN SDG 6, increasing eligibility for development finance, blended capital structures and ESG-focused funds.
• Innovation upside: Focus on pioneering technologies and scalable solutions opens opportunities for investors in water tech, infrastructure, data, desalination and resource management.
• Strong sovereign backing: Led by the Abu Dhabi Fund for Development, the initiative benefits from institutional credibility, risk mitigation and long-term policy commitment.

BCD Global, the international expansion platform of Indian-founded real estate developer BCD Group, has entered the Middle East, naming Dubai as its regional headquarters as it pursues its next phase of global growth.

The move marks the first Middle East expansion for the 70-year-old group, which has delivered more than 155 million square feet of real estate across over 300 residential, mixed-use and large-scale developments in seven countries.

BCD Global said it chose Dubai due to the emirate’s economic stability, access to global capital, regulatory clarity and long-term urban planning framework.

“Dubai represents the convergence of global capital, governance and long-term urban vision,” Amit Puri, CEO of BCD Global, said in a statement.

Founded in India in 1952, BCD Group has developed projects across infrastructure-led asset classes, including healthcare, senior living, hospitality, co-living and urban infrastructure. BCD Global will spearhead the group’s international expansion from the UAE, with a focus on institutional governance and long-term asset creation.

The expansion follows a strategic restructuring under chairman Angad Singh Bedi, who has overseen the group’s transition to a zero-debt, vertically integrated operating model.

“The Middle East is one of the defining growth corridors of the next decade, and Dubai stands at its centre,” Bedi said, adding that the group’s entry into the region was intended as a long-term expansion rather than a short-term market play.

BCD Global’s entry comes as the UAE’s real estate sector continues to benefit from population growth, infrastructure investment and sustained inflows of international capital. The UAE’s population is projected to reach around 11 million by 2030, supporting demand for large-scale, institutional-quality developments.

From Dubai, BCD Global will oversee its Middle East and Africa operations, with the wider Gulf region, including Saudi Arabia, identified as a key growth market over time.