SICO Publishes its Fifth Annual Investor Return Expectations in the GCC Report, Highlighting Regional Insights and Investor Expectations
08/12/2025SICO BSC (c), a leading regional asset manager, broker, and investment bank with a direct presence in Bahrain, Saudi Arabia, and the UAE, published its fifth annual investor return assessment survey, offering an inside look into the economic and return requirements of investors across the GCC.
SICO’s Group CEO, Najla Al-Shirawi, commented on the report’s publication, saying, “The survey results highlight the continued confidence in, and ongoing development of, the investment environment across the Gulf region, as well as its resilience in sustaining growth despite global uncertainties. The importance of this report lies in its ability to capture the evolving perspectives and expectations of investors across the GCC, serving as a roadmap for identifying suitable investment opportunities and solutions in a changing market landscape. We also hope that its findings will serve as a practical reference to help navigate market challenges and strengthen our commitment to supporting clients through tailored solutions and products that align with their goals.”
The report also examines investor optimism by market, with the highest confidence in the UAE (79%) and Saudi Arabia (72%). Saudi Arabia continues to present a strong investment landscape supported by structural reforms and ongoing economic transformation. Meanwhile, the UAE’s outlook also remained robust, driven by population growth and investor-friendly policies. Oman and Kuwait have also seen increase in optimism YoY led by government reforms, a better fiscal situation for Oman, and increasing spending. Similarly, investors in Bahrain displayed a predominantly positive-to-neutral sentiment, with a combined positive and neutral outlook of 77%.
Based on the respondents' expectations, the required returns for listed equities remained consistent with previous years, with investors seeking returns between 9-12% for 2026.
For 10-year USD government bonds, investors currently require an annual return of 5% in Saudi Arabia, the UAE, and Qatar, while Oman, Kuwait, and Bahrain see a slightly higher expectation of 6%. While for real estate, required returns across all GCC countries have remained consistent with previous years, ranging from 7% to 10%.
Investor return requirements for private equity were at 13% or above across all markets. In Bahrain, candidates are generally expecting around 13%, with a few anticipating returns of 16% or more. For cash deposits, there has been an increase this year in respondents expecting a 5-6% return, compared with 3-4% last year.
In terms of issues impacting the investment landscape, geopolitical tensions remain the primary concern among respondents, followed closely by inflation and interest rates, and then commodity prices. This is not surprising given the disruption caused during the year by geopolitical events and the possibility of further events affecting market sentiments in 2026. Inflation also has been one of the top concerns like last year, as pressure on disposable income affects purchasing power and tariff-related uncertainties. Equities remain the most favored asset class for generating risk-adjusted returns earning 55% of investor preference, followed by fixed income and real estate. This preference reflects the anticipated impact of rate cuts on fixed income instruments and the potential for lower capital costs to enhance equity returns in the coming year.
To read the full Investor Return Expectations in the GCC Report 2026, please visit sicobank.com.
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