Morgan Stanley analysts argue the growth momentum for United Arab Emirates-exposed stocks should continue into 2026, but the bar for beating expectations is now higher. A supportive economic environment and regulatory measures made 2025 a “year to remember” for many firms, though current valuations already reflect a positive outlook.

The bank upgraded its rating on Dubai’s main share index to “overweight,” predicting outperformance due to easing concerns around a Bolt partnership. Expansion into other Emirates and pilot testing of autonomous taxis are seen as potential catalysts, though analysts note higher capital expenditure versus lower operating expenses will be a key trade-off for investors.

Morgan Stanley also gave “overweight” outlooks to ADNOC Distribution and Empower, citing their discounts to historical levels. Conversely, it downgraded toll operator Salik to “equal-weight,” expecting business to normalize after a strong 2025 driven by new gates and dynamic pricing.