The complete guide
Global Market Conditions
As the third quarter of 2025 concludes, global growth remains resilient yet uneven, navigating a period defined by evolving trade policy, monetary realignment, and heightened geopolitical multipolarity.
Global GDP is projected to moderate only modestly from 3.3% in 2024 to ~2.8–3% by year-end 2025, supported by fiscal stimulus in Germany and China, structural reforms in Japan, and robust domestic expansion in India. This diversification of growth drivers has softened the impact of the U.S. slowdown, where output decelerated to 1.4% in H1 2025, weighed down by higher tariffs, elevated rates, and weaker labor conditions.
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In this environment, investors continue to pivot toward real assets as a store of long-term value. KKR’s Global Macro & Asset Allocation team characterizes this as a “New Investing Regime” — one defined by elevated inflation volatility, lower average returns for traditional assets, and an increasing premium for illiquidity and collateral-backed cash flows.
For Dubai, this represents a powerful tailwind. The emirate’s currency stability, zero capital gains environment, and transparent regulatory ecosystem position it as a beneficiary of global portfolio reallocation from low-yield fixed income to tangible, income-producing real assets.
The Portfolio Pivot to Collateral-Backed Cash Flows
Amid continued disinflation, softening long-end yields, and renewed investor focus on duration management, global capital allocators have deepened their rotation into real estate, infrastructure, and asset-based finance.