Economic growth in the Gulf Cooperation Council (GCC) region is expected to rebound to 2.8% and 4.7% in 2024 and 2025, respectively, according to the World Bank, in its Spring 2024 Gulf Economic Update (GEU).
The encouraging regional prospects and rebound are not just due to the anticipated recovery in oil output, as OPEC+ gradually relaxes production quotas during the second half of 2024, but also builds on the strong momentum of the non-oil economy, which is expected to continue to expand at a robust pace over the medium term, according to the report.
The commitment of the GCC to diversifying their economies highlights their strategic approach to fostering resilience and sustainable development during a volatile global economic period, said the World Bank.
Despite diversification efforts, hydrocarbon receipts will remain crucial in shaping the region’s fiscal and external balances in the medium term, it added.
The World Bank expects Saudi Arabia’s real GDP to grow by 2.5% in 2024, driven primarily by robust non-oil private activities. It also forecasts the UAE’s real GDP growth to accelerate to 3.9% in 2024.
World Bank’s Expectations for GCC Economic Growth in 2024, 2025
Country
2024
2025
Saudi Arabia
2.5%
5.9%
UAE
3.9%
4.1%
Qatar
2.1%
3.2%
Kuwait
2.8%
3.1%
Bahrain
3.5%
3.3%
Oman
1.5%
2.8%
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