The World Bank has projected that Gulf economies will see an economic growth rate of 3.4 percent in 2025, rising to 4.1 percent in 2026, surpassing the expected 3.3 percent growth rate for the broader Middle East and North Africa (MENA) region.
Ousmane Dione, World Bank Vice President for MENA, shared these insights during the World Governments Summit 2025 (WGS) in Dubai. He noted that while the region’s economic outlook remains positive, growth will vary between oil-producing and oil-importing nations.
Dione emphasized that the GCC countries enjoy a strong economic position due to ongoing diversification efforts. Substantial investments in non-oil sectors have bolstered their resilience, giving them a competitive edge over nations facing geopolitical instability and economic challenges.
Additionally, Dione discussed a key Memorandum of Understanding (MoU) signed between the World Bank and the Mohamed bin Zayed Water Initiative, aimed at tackling water security issues in the region and beyond. He highlighted that MENA accounts for approximately 55 percent of the world’s desalinated water production but stressed the need for alternative solutions. These include water reuse, improved resource management, and leveraging artificial intelligence to detect leaks and enhance irrigation efficiency.
The discussions at WGS 2025 underscore the importance of economic diversification and technological advancements in securing long-term stability and sustainability across the region.
News Source: Emirates News Agency
