GCC Growth Forecasted to Strengthen, MENA Region Sees Recovery: World Bank Report

GCC Growth Forecasted to Strengthen, MENA Region Sees Recovery: World Bank Report

By Staff Writer, 12 January 2024

According to the latest findings from the World Bank's Global Economic Prospects report, the Gulf Cooperation Council (GCC) nations are anticipated to witness an uptick in growth, reaching 3.6% in 2024 and further escalating to 3.8% in 2025.

This positive trajectory is attributed to the vigorous performance of the non-oil sectors in the preceding year.

Contrastingly, the Middle East and North Africa (MENA) region experienced a deceleration in its growth rate, plummeting to 1.9% in 2023.

The Emirates News Agency, WAM, referenced the report, highlighting several challenges faced by the region.

These challenges encompassed reductions in oil production, surging inflation rates, and feeble private sector engagement in economies reliant on oil imports.

Nevertheless, the report remains optimistic, projecting a resurgence in growth for the MENA region to 3.5% for both 2024 and 2025.

Further insights from the report indicate a marginal slowdown in growth for oil-importing nations within the region, underscoring lackluster private sector performance.

Projections suggest a growth rate of 3.2% for the current year, with an anticipated rise to 3.7% by 2025.

Delving into individual country forecasts, the report outlines specific growth trajectories for key economies.

The United Arab Emirates (UAE) is estimated to have achieved a real gross domestic product (GDP) growth of 3.4% in 2023, with projections indicating increments to 3.7% in 2024 and 3.8% in 2025.

Saudi Arabia's economic landscape is poised for expansion, with growth rates forecasted at 4.1% for the ongoing year, scaling further to 4.2% in the subsequent year.

Meanwhile, Kuwait is expected to register growth rates of 2.6% by the close of 2024, with a marginal rise to 2.7% in 2025.

In addition, Bahrain is projected to achieve growth rates of 3.3% in 2024, slightly moderating to 3.2% in 2025.

Similarly, Qatar is on track to attain growth rates of 2.5% this year, with an upward trajectory to 3.1% anticipated for 2025.

Oman's economic outlook also appears promising, with growth rates projected at 2.7% in 2024 and a modest increase to 2.9% in 2025.

Source: TradeArabia

Related Report

Dubai's Venture Capital Ecosystem

There are 749 scale-ups that have raised over US $1 million in fundraising in the Middle East and North Africa region; collectively raising over US $19.5 billion, cumulatively, as of December 2022. Over 40% of these scale-ups call Dubai home.

Subscribe To Our Newsletter

Stay up to date with the latest news, special reports, videos, infobytes, and features on the region's most notable entrepreneurial ecosystems