The latest ICAEW Economic Insight report for the Middle East, prepared by Oxford Economics, reveals promising growth projections for the GCC region, with the economy set to more than double its expansion rate to 4.4% by 2025.
According to the report, the region's economic growth is expected to reach 2.1% in 2024, with a substantial acceleration to 3.7% the following year. A key driver of this growth is the GCC's robust non-energy sectors, which are forecasted to expand by 4.2% in 2024 and 4.4% in 2025.
Recent Purchasing Managers' Index (PMI) readings indicate strong domestic activity, and anticipated interest rate cuts are expected to further boost consumer spending and private investment. Sectors such as tourism, trade, and finance are playing an increasingly important role in the region's economic diversification efforts.
Scott Livermore, ICAEW Economic Advisor and Chief Economist at Oxford Economics Middle East, stated,
"The GCC's proactive and strategic investment in non-oil sectors, along with the gradual recovery of oil production, is paving the way for robust growth in 2025."
Hanadi Khalife, Head of ICAEW Middle East, highlighted the resilience of the region's business community, emphasizing that the Middle East, with the support of the accountancy profession, is well-equipped to navigate global economic and geopolitical challenges.
As the GCC strengthens its focus on non-energy industries, the region is poised for a strong rebound in the coming years, positioning itself as a key player in the global economy.
News Source: Emirates News Agency
