Allianz Chief Economist Ludovic Subran recently highlighted the significant economic toll of ongoing regional instability, noting that the GCC is losing roughly one percentage point of its GDP every month. Despite this, Subran commended the region's remarkable resilience during a summit in Dubai, suggesting that the commitment to long-term initiatives like Vision 2030 remains a powerful draw for international investors. He emphasized that for the region to continue attracting capital, it must prioritize clear strategic direction, bankable projects, and strong investment partnerships.

On a broader scale, Subran warned that the global economy is currently reliant on a narrow base, noting that global trade is effectively in a recession if AI-related sectors are excluded. He pointed out that while the US economy is currently propped up by a massive public sector deficit and AI-driven capital expenditure, there are mounting risks regarding interest rates and credit stability. To navigate this uncertain landscape, Subran advised investors to pivot toward resilient assets like infrastructure and private credit, while also acknowledging that gold has become a vital portfolio tool for diversifying beyond traditional equities and bonds.