Market Insights Financial Corporate Finance

Investment Banking - United Arab Emirates

United Arab Emirates

The Investment Banking market market in the United Arab Emirates is anticipated to achieve a revenue of US$0.48bn in 2024.
Based on the projected annual growth rate (CAGR 2024-2028) of -2.15%, it is expected to reach a total of US$0.44bn by 2028.
In terms of global comparison, the United States leads with the highest revenue of US$119.10bn in 2024.
The United Arab Emirates has become a hub for investment banking in the Middle East, attracting both local and international firms due to its strong economy and favorable business environment.

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Analyst Opinion

The Investment Banking market in United Arab Emirates is experiencing a significant growth trajectory driven by various factors.

Customer preferences: In the UAE, customers are increasingly seeking personalized and innovative investment banking solutions tailored to their specific needs. This trend is in line with the global shift towards more customized financial services that cater to individual preferences and risk appetites.

Trends in the market: One notable trend in the UAE's Investment Banking market is the rising demand for Islamic finance products. As a predominantly Muslim country, there is a strong preference for Sharia-compliant banking services, leading to an increased focus on Islamic investment banking offerings. Additionally, the UAE is positioning itself as a hub for sustainable and green finance, with a growing emphasis on environmental, social, and governance (ESG) criteria in investment decisions.

Local special circumstances: The UAE's strategic location, business-friendly environment, and robust regulatory framework make it an attractive destination for investment banking activities. The country's status as a global financial center, particularly in Dubai and Abu Dhabi, further enhances its appeal to domestic and international investors. Moreover, the presence of sovereign wealth funds and a well-developed capital market contribute to the vibrancy of the Investment Banking sector in the UAE.

Underlying macroeconomic factors: The UAE's stable economic growth, diversification efforts, and government initiatives to promote foreign investment play a crucial role in shaping the Investment Banking landscape. The country's strong fiscal position, infrastructure development projects, and vision for a knowledge-based economy provide a solid foundation for the expansion of investment banking services. Additionally, the UAE's proactive approach to fintech innovation and digital transformation is driving efficiency and enhancing the overall competitiveness of the financial sector.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.