Navigating Gulf markets through the eyes of a veteran investor

As Gulf economies pursue sweeping reforms and long-term diversification, international investors are increasingly moving into the region. 

For this feature interview, we speak with Munder Shuhumi about the opportunities for investors in the Gulf Cooperation Council (GCC), the challenges of entering these markets and how to navigate the local nuances for long-term success. 

Shuhumi brings over two decades of experience at the intersection of global finance and Gulf markets, with senior roles at institutions such as Goldman Sachs, Man Group, and Saudi Arabia’s Public Investment Fund (PIF). 

In 2025, he was appointed to the Advisory Board of ICON Asset Management, where he provides strategic counsel on Gulf market entry, risk management and deal structuring, drawing on first-hand understanding of how business gets done in the region.

Why the Gulf, why now?

In one word, momentum. GCC economies are growing faster than much of the world—about 4% projected in 2026, compared to the global average of 3%. High oil revenues have given these governments the fiscal headroom to invest heavily in infrastructure, tech and tourism. 

But what’s more important is the policy environment. There’s a clear top-down strategy to attract foreign capital and expertise.

Saudi Arabia, for example, recorded nearly $26 billion in FDI in 2023, a 50% increase from the previous year. Riyadh, the Saudi capital, exemplifies the Gulf's rapid economic transformation. 

In the United Arab Emirates (UAE), Dubai hit an all-time record of $14.2 billion in 2024. These aren’t isolated figures; they reflect a broader effort to reposition the region as a global investment hub.

What’s compelling is not just the capital, but the speed and scale of transformation. If you want exposure to sectors like clean energy, logistics, or high-growth tech, the Gulf is hard to ignore right now.

Another draw is the ambitious economic transformation underway. The GCC states are investing in everything from cutting-edge tech hubs to tourism and entertainment. 

Governments are also improving the business climate by streamlining regulations, offering incentives and requiring international companies to establish local headquarters if they want major government contracts (as Saudi Arabia did in 2021). 

The result is a sense that if you want to be part of the next big growth story, you need to have a presence in the Gulf. It’s a region where capital is abundant, consumer demographics (young and digitally savvy populations) are favorable, and leadership is focused on future-proofing their economies. 

For banks and investors looking for growth, that combination is very compelling.

Saudi, UAE, Qatar: One region, three models

Saudi Arabia

The Kingdom is in the midst of a historic economic opening. Its Vision 2030 blueprint is driving diversification on an epic scale – from developing tourism and entertainment to boosting manufacturing and SMEs.

Not long ago, Saudi was a fairly closed market, but now we see dramatic reforms: for instance, foreign investors can own 100% of companies in many sectors (no local partner required), which was unheard of a decade ago.

The government is investing hundreds of billions into “giga-projects” like NEOM (a $500+ billion futuristic city) and Red Sea tourism resorts, creating opportunities for global investors to participate in development and financing.

Key sectors here include infrastructure, clean energy (think massive solar and green hydrogen projects), tourism/hospitality, and an emerging tech scene.

Saudi Arabia’s capital market is also expanding – the Tadawul exchange has seen huge IPOs (Aramco’s listing was the world’s largest) and is opening up to foreign institutional investors.

In short, Saudi offers scale: it’s the largest GCC economy with 35 million people and the government’s goal to attract $100 billion in FDI by 2030 and build a global economic hub is catalyzing a lot of activity.

Investors who align with Riyadh’s vision (and partner with vehicles like the PIF) can tap into significant co-investment and growth opportunities.

United Arab Emirates

The UAE remains the Gulf’s financial and logistical hub. It’s a more mature market, very friendly to foreign investors, and constantly innovating.

It was one of the first in the region to allow 100% foreign ownership of companies across most sectors, and it offers attractive incentives like long-term “golden visas” for investors and professionals to settle and thrive.

Dubai’s economy is highly diversified (finance, real estate, logistics, tourism, and retail are pillars) and it continues to reinvent itself (for example, positioning itself as a global crypto and fintech hub in recent years).

In 2024, Dubai led the world for the 4th year in a row in new foreign investment projects, and its FDI inflows jumped 33% year-on-year. That speaks to a pro-business environment under visionary leadership (Dubai’s D33 agenda aims to double its economy by 2033).

Meanwhile, Abu Dhabi anchors the UAE’s wealth with huge sovereign funds and is spearheading growth in industries like advanced technology, renewable energy (through Masdar) and aerospace.

The UAE also shines in ease of doing business – world-class infrastructure, international talent pool, and legal frameworks (like the DIFC and ADGM financial free zones with common-law courts) that give foreign firms confidence.

For investors, the UAE offers a dynamic, well-regulated market to use as a base for regional operations, plus strong prospects in sectors like real estate (which is booming again), fintech and high-end manufacturing.

Qatar

Qatar is smaller, but extremely well-capitalized and strategically positioned. The World Cup proved Doha can execute at scale, building huge infrastructure (stadiums, a new metro, highways) which are part of a broader infrastructure drive.

Powered by its massive natural gas reserves, Qatar has one of the highest GDP per capita in the world. Now, under Qatar National Vision 2030, it’s pouring resources into diversifying beyond LNG exports.

The country has liberalized its economy significantly; for example, it introduced 100% foreign ownership allowances in many industries and various tax incentives to attract overseas businesses.

Key opportunities in Qatar include infrastructure and construction (the development spree is ongoing), logistics and manufacturing (leveraging its location between Asia, Africa and Europe), tourism and sports (continuing the World Cup momentum with plans to host more mega-events, plus luxury tourism projects), and finance/asset management (Doha has the Qatar Financial Centre and is vying to become a regional finance hub, supported by Qatari sovereign wealth).

Qatar’s government and Qatar Investment Authority (QIA) are actively co-investing with foreign partners in technology (e.g. AI, fintech) and renewable energy as well.

Notably, Qatar is targeting an ambitious $100 billion of FDI in coming years as part of its Third National Development Strategy – a sign of how serious they are about bringing in international investors.

The business environment is very streamlined and political stability is solid under the ruling family.

One difference to note: Qatar’s domestic market is small (less than 3 million people), so many investors see it as both a gateway to regional projects and a source of strong capital (Qatar Inc. invests heavily abroad too). Overall, Qatar offers high-end opportunities – often in partnership with the state – in niche sectors aligned with its national strategy.

Common pitfalls in the GCC

Lack of local intelligence

A common mistake is trying to do business in the Gulf remotely or without on-the-ground support. Many newcomers lack a trusted local partner or network, which is crucial in a relationship-driven culture.

Without reliable contacts, you may struggle to navigate the bureaucracy or even discern who truly controls a company. Corporate ownership structures can be opaque, and if you don’t have local intelligence, you risk dealing with the wrong counterparties.

Successful investors usually “deeply immerse” themselves, building real presence and trust in the region, because reputation and relationships often matter as much as capital here.

Lack of thorough due diligence

This cannot be emphasized enough. Foreign firms sometimes assume that because a GCC country is pro-business, all companies and deals are straightforward – not so.

The region has less publicly available corporate data than, say, the UK or the US, and many businesses are family-owned or private. There are cases of complex ownership webs – for example, a potential partner might have multiple similarly-named entities to obscure liabilities.

Without proper due diligence on beneficiaries, financials and legal status, you could end up in bed with a partner who has hidden debts or legal issues.

I’ve also seen scams targeting foreign investors like unsolicited “too good to be true” offers of financing or partnerships. If you don’t independently verify and check backgrounds, you could lose everything, as one due diligence expert bluntly put it.

So, doing your homework – rigorous compliance checks, hiring professional investigators if needed – is vital before signing anything.

Cultural and regulatory missteps

The Gulf may appear very modern, but there are distinctive cultural norms and legal frameworks that outsiders must learn.

One simple example is naming conventions. Something as basic as verifying a company or individual’s name can be tricky due to Arabic transliteration differences, which can complicate document searches if you’re not careful.

More broadly, business in the GCC often runs on personal trust, respect and understanding of local etiquette. Rushing into negotiations with a purely “Western” approach – say, being too pushy on timelines or ignoring hierarchical protocols – can sour a deal.

Patience is valued; decisions might take time and require meeting senior figures multiple times. Additionally, each country has its own regulatory nuances (e.g. foreign ownership limits in certain sectors, or requirements for local staffing, or Sharia-compliance in finance).

Overlooking legal requirements or failing to adapt to local business culture is a common mistake that can derail market entry. I always advise clients to engage local legal counsel early and to be humble learners of the culture.

Short-termism and “fly-in, fly-out” strategy

Some investors make the mistake of expecting quick wins in the Gulf without long-term commitment. The truth is, while deals can be lucrative, they often materialize from long courtship.

Presence on the ground is often interpreted as a sign of seriousness. You might need to set up a regional office or spend a lot of time here to build credibility. Those who just fly in for a conference and expect to immediately land a major contract tend to be disappointed.

The GCC rewards those who show they’re in it for the long haul, aligning with the countries’ long-term visions. If a firm is only looking for a quick profit and not adding local value, word gets around and doors close.

The flip side is, if you demonstrate commitment, hire locally and contribute to the ecosystem, doors open thanks to government support and business community goodwill.

In summary, the challenges boil down to information, integration, and expectation: you need the right information (through due diligence and local knowledge), the right integration into the local fabric (culturally and via partnerships), and the right expectations (patience and strategic commitment).

Get those wrong, and even in a booming region you can stumble badly.

Advice for entering the Gulf market

Be optimistic, but be prepared. Spend on expertise upfront: local legal counsel, proper due diligence, market intelligence. Partner wisely and don’t underestimate the cultural dimension.

Although Gulf countries are making tremendous strides to welcome investors with open arms, companies absolutely must familiarize themselves with the local nuances. This is a region that rewards patience, presence, and professionalism.

In practice, that means investing in expertise before you invest your money. Hire the right facilitators and market-entry consultants; bring on board advisors who have deep, on-the-ground knowledge of the jurisdiction.

A few dollars spent on quality legal and due diligence services upfront can save you from multimillion-dollar headaches down the road. Engage reputable local partners or agents where appropriate; people who have the relationships and understand how things get done in that country.

Equally, do not skip thorough due diligence at any stage. This is a region where a polished exterior might mask complexities beneath, so verify everything – from a potential partner’s ownership and financial health to compliance with local regulations and international standards.

Use service providers who specialize in digging up the facts in GCC markets, because they can catch red flags that outsiders often miss. Essentially, know who you’re dealing with and partner only with trusted entities.

Looking beyond the Gulf

Libya is complex but can’t be written off. It holds Africa’s largest proven oil reserves and is still flaring massive volumes of gas—resources that are underutilized. With infrastructure like the Greenstream pipeline to Italy, Libya could play a strategic role in Europe’s energy diversification.

There have been encouraging signals: a licensing round for oil blocks, Eni’s $8 billion gas deal, and renewed engagement from European firms like OMV, Repsol and others. 

So from a purely resource perspective, the upside is huge: increasing oil production, rebuilding refineries, developing infrastructure – all of that will require capital and expertise, which could be lucrative for investors in energy, engineering, and construction.

But the risks remain acute. Fragmented governance, weak institutions, and unpredictable security conditions. 

Since 2011, the country has been divided between rival factions in the west and east, with periodic flare-ups of violence. Even though full-scale civil war has abated in the last five years, stability is fragile and increasingly at risk, as the UN recently warned. 

For investors, this translates to huge political risk. Deals can be upended by factional changes, contracts might not be honored if power shifts, and security on the ground is a concern. 

Many companies are in “wait and see” mode: they want to see evidence that earlier projects actually bear fruit and that Libya can maintain order before committing large sums.

My view is that cautious engagement is key. For those with a strategic interest (for example, oil companies or infrastructure firms), it makes sense to stay informed, build relationships with all relevant stakeholders, and perhaps start with small exploratory investments or partnerships to position yourself for an eventual opening.

The upside – tapping into a large frontier market in need of everything from power plants to banking services – will only materialize if there’s a sustained peace and a unifying government.