MENA Equity Research: 3Q26 MENA Outlook: Resilience to Rebound

Research evidence excerpt

MENA Equity Research: 3Q26 MENA Outlook: Resilience to Rebound

in all of EM

during the conflict. Recent underperformance stands in contrast to resilient domestic Michael Christelis, FIA CFA

activity, strong credit growth and continued strength in the non-oil economy. In our Analyst

michael.christelis@ubs.comframework, UAE now screens as one of the most attractive markets in EM on the

+27-11-322 7320

combination of valuations and fundamentals, with further upside from rising oil

production, infrastructure spending and a recovery in services and tourism. That said, Alexander Estefanous, CFA

with EM increasingly dominated by AI-linked leadership and earnings upgrades in Asia, Analyst

alex.estefanous@ubs.comMENA's appeal remains more valuation and domestic-cycle-driven, than thematic.

+44-20-7567 0508

Healthcare (UBS extended coverage), Real Estate and Transport attractive Anna Kishmariya

Analyst

Since the Iran conflict began, the Saudi and Kuwait markets have proved more resilient,

anna.kishmariya@ubs.com

while the Dubai market has been weakest. Telcos have proved the most consistently +44-20-7568 7999

defensive across markets, while Real Estate in the UAE has lagged significantly. Taking

Ulyana Lenvalskayainto account (moderate) earnings downgrades, Transport, Healthcare and Real Estate

stocks trade at some of the largest discounts to the 5-year average of 2Y forward P/Es,

ulyana.lenvalskaya@ubs.com

while Materials and Utilities trade in line with historic multiples. This quarter UBS has +971-443-64776

extended its coverage of the Saudi Healthcare sector, and we note that National

Luis SchmidtMedical (Buy) trades on one of the largest HOLT Economic P/E discounts to history in the

Associate Analyst

region.