WB Upgrades GDP Forecast for UAE, KSA, Qatar, Oman & Kuwait

Saudi Arabia's gross domestic product is projected to achieve a 4.1 % growth in 2024, driven by increased non-oil activities, as per the latest World Bank report. The bank raised its 2024 economic growth expectations for the Kingdom of Saudi Arabia (KSA) by 0.8 %, from the June 2023 forecast of 3.3 %.

The World Bank’s latest report on global economic prospects noted that despite the extension of voluntary oil production cuts earlier this year, Saudi Arabia’s economy is poised for expansion, driven primarily by non-oil-related activities, aligning with the objectives of Vision 2030. It also revised its 2025 projections for Saudi Arabia to 4.2 %, reflecting a 1.7 % increase from the June 2023 forecast.

Similarly, the bank’s Global Economic Prospects report forecasts an expected growth of 3.7 % in the UAE’s real GDP for 2024, marking an increase from the previous year’s 3.4 %, with a further uptick to 3.8 % anticipated in 2025. Concurrently, the GCC countries are anticipated to witness growth rates of 3.6 % in 2024 and 3.8 % in 2025, propelled by a resurgence in oil activity.

The Kuwaiti economy is slated to expand by 2.6 % in 2024, followed by a subsequent increase to 2.7 % in the following year. Conversely, Bahrain’s economy is forecasted to grow by 3.3 % in 2024 and 3.2 % in 2025. In 2024, Qatar’s economy is poised for a 2.5 % expansion, followed by an anticipated growth of 3.1 % in the subsequent year. Similarly, Oman’s economy is expected to grow by 2.7 % in 2024, with a further increase of 2.9 % in 2025.

On the flip side, the Middle East and North Africa region experienced a notable slowdown in its growth rate, dropping to 1.9 % in 2023. This downturn was attributed to challenges such as reduced oil production, heightened inflation, and subdued performance in the private sector of oil-importing nations. However, there is an anticipation of growth rebounding, reaching 3.5 % in both 2024 and 2025.