Gulf wealth remains committed to UK property as global competition intensifies
High-net-worth investors from the Gulf region plan to invest an average of £78.3 million each in UK property over the next five years, according to the fourth annual GCC Investment Barometer from AlRayan Bank, the UK's largest and most successful Islamic bank. The findings highlight the UK's continued appeal as a destination for international investment.
The research, conducted among investors from Saudi Arabia, Qatar and the UAE with at least £10 million in wealth and/or assets, found that 99% plan to make new or increased UK property investments over that period. Planned allocations rise to £147.3 million among ultra high-net-worth investors with £500 million or more.
London remains the city where GCC investors were most likely to have deployed capital over the past year. One in three (33%) reported investing in London property during the past 12 months, ahead of Singapore at 24%, and Paris and New York both at 23%. London has led this measure in every edition of the Barometer, which was first published in 2023.
Longer-term confidence is holding too, with 95% expecting UK property to remain a strong investment opportunity over the next five years and 91% describing the market as attractive today.
Near-term competition is nevertheless intensifying. 21% plan to invest in London during the next 12 months, down from 23% in 2025 and behind Monaco, Miami, Singapore and New York. The gap between recent activity and stated intention suggests that, while London continues to convert Gulf capital successfully, investors are weighing Britain against a widening range of global options.
Maisam Fazal, Chief Commercial Officer at AlRayan Bank, said: “GCC investors have more choice than ever over where they place their capital, so the continued strength of commitment to the UK is a significant indicator of confidence. Investors see long-term value in the depth of the market, its professional infrastructure and the range of opportunities available.
“However, that position cannot be taken for granted. Investors are increasingly focused on the fundamentals of individual opportunities, and the UK needs to remain commercially attractive if it is to keep converting confidence into investment.”
Investors look beyond the trophy asset
The type of property attracting GCC capital is also evolving. High-profile homes and landmark assets remain part of the picture, but property development is now the leading future investment priority, cited by 30% of respondents. Retail follows at 29%, with social or affordable housing and hospitality and leisure both on 28%.
No single sector attracts more than 30%, indicating a more diversified approach to UK real estate. The fundamentals behind those choices are firmly in focus: 66% cite strong rental growth potential, 56% reliable long-term returns and 55% the UK’s supply-demand imbalance.
The broadening is visible geographically too. London remains the leading UK location, considered by 54% of those planning new or increased investment, but appetite extends well beyond the capital, with Liverpool leading among regional cities at 34%, Birmingham at 27% and Manchester at 25%. Manchester’s share has risen from 22% in 2025, while Cardiff (33% to 18%) and Brighton (31% to 14%) have fallen back, although the question was reworded between waves and the comparison is directional.
Gulf growth reinforces UK investment
The data also points to a strengthening two-way relationship between the UK and Gulf markets. Almost nine in ten respondents (89%) said that as investment opportunities expand in their own markets, they are putting more capital into the UK rather than less, while 57% said the ability to reinvest income from UK assets back home makes UK investment more likely.
Wider uncertainty is shaping allocation decisions too, though not in a single direction. Around half said that global geopolitical uncertainty (49%) and instability in the Middle East (51%) make them more likely to invest in UK property, underlining the role established international markets play within diversified portfolios. More than a third (38%) say regional instability is prompting them to diversify into markets beyond the UK — a reminder that UK assets now sit within a broader international portfolio, and that Britain must stay competitive as capital becomes more mobile. The full 2026 GCC Investment Barometer is available at alrayanbank.co.uk/gcc-barometer