BlackRock, the world's largest asset management firm, has affirmed that the long-term investment fundamentals of the United Arab Emirates and the broader region remain strong and attractive, supported by accelerating investment in infrastructure, digital transformation, artificial intelligence, and enhanced economic resilience.

The firm noted that the UAE continues to consolidate its position as a regional hub for sovereign AI infrastructure, owing to its substantial capital base, advanced infrastructure, and flexible regulatory environment.

Ihsan Khoman, an economist at the BlackRock Investment Institute — the research and strategy arm of BlackRock — said that over the past two decades, investors had regarded Gulf Cooperation Council countries primarily as beneficiaries of global demand for hydrocarbons.

However, that relationship is now undergoing a fundamental shift, with the region investing in building the infrastructure that will underpin the next phase of global growth — spanning artificial intelligence, digital infrastructure, logistics, clean energy, and private capital.

"For investors, the UAE has come to represent a strategic investment gateway for capturing the major structural trends reshaping the global economy," Khoman said. "Investment is no longer confined to energy production; it now encompasses ownership of the infrastructure that enables and supports AI, digital transformation, trade, and global connectivity."

He added: "The UAE possesses unique attributes that position it for exactly this role, combining vast sovereign capital, world-class connectivity infrastructure, regulatory flexibility, and international partnerships."

This is clearly reflected in the pace of investment activity: the UAE has captured approximately 50% of the value of contracts awarded for major projects in GCC countries since the beginning of 2026, according to MEED Projects data — illustrating the speed at which capital is being deployed and projects executed.

Khoman noted that global investors are increasingly looking to the UAE not only in light of its current economic standing, but also with an eye on where global capital flows are headed over the coming decade.

He explained that AI is becoming increasingly dependent on physical infrastructure: every AI model ultimately requires electricity, computing capacity, semiconductors, fibre-optic networks, cooling systems, water, and data centres — resources that have become the scarcest of commodities.

"This aligns directly with the UAE's strengths," he said. "It offers substantial capital, competitive energy, a supportive regulatory framework, and a clear national AI strategy, reinforcing its standing as a regional hub for sovereign AI infrastructure."

Khoman continued: "We are already witnessing this through initiatives such as MGX, G42, and Khazna, as well as the announcement of the Stargate UAE project, which targets the establishment of an AI computing campus with a capacity of up to 1 gigawatt — as part of an integrated computing facility with a total planned capacity of 5 gigawatts by 2030. The first phase, a 200-megawatt computing campus, is expected to become operational by the end of 2026."

Khoman said the most significant investment opportunities remain concentrated in areas experiencing the highest levels of scarcity, including AI infrastructure, data centres, power generation, electricity grids, utilities, logistics, private credit, and infrastructure project financing — sectors in which demand is expected to outpace supply for years to come.

Khoman believes that while the UAE's and the region's long-term investment fundamentals remain strong and attractive, simply investing in the region will not be sufficient to achieve the best outcomes in the next phase. Success will come to investors who can identify which parts of the value chain are experiencing the most acute scarcity and possess the ability to generate sustainable cash flows over the coming decade.

He noted that geopolitical fragmentation is reshaping how companies view supply chains: efficiency alone is no longer the governing criterion, as resilience, multiple supply routes and their alternatives, and supply chain security have risen to the top of the priority list.

Khoman said the UAE has spent decades building these attributes through the development of world-class ports, a leading aviation sector, advanced logistics infrastructure, sophisticated financial markets, and modern digital communications networks — investments whose importance only grows as global trade routes become increasingly fragmented.

At the regional level, he observed, significant investments are also being made in resilience-supporting infrastructure, spanning transport, logistics, pipelines, and maritime infrastructure.

"The UAE complements this ecosystem through its role as a global gateway for the region," he added. "Whether it concerns capital flows, the movement of goods, energy, or data — which grows ever more important — the UAE has firmly established itself as one of the world's most significant connectivity hubs."