The latest ICAEW Economic Insight report for the Middle East, prepared by Oxford Economics, said that the GCC region is poised for a significant rebound, with growth projected to more than double to 4.4% in 2025.The report highlighted that while economic growth in the Middle East is projected at 2.1% in 2024, a significant acceleration to 3.7% is expected in 2025.
The report emphasised the resilience of the GCC's non-energy sectors, which are expected to expand by 4.2% this year and 4.4% in 2025.
Recent PMI readings suggest strong domestic activity, and anticipated interest rate reductions are expected to further bolster consumption and private investment. These sectors, including tourism, trade, and finance, are becoming crucial growth drivers in the region's economic diversification efforts.
Scott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing Director, Oxford Economics Middle East, said, "The GCC's proactive and strategic investment in non-oil sectors, alongside the gradual recovery of oil production, is paving the way for robust growth in 2025, where the resilience of the GCC stands out."
Hanadi Khalife, Head of Middle East of ICAEW, said, "The report underscores the importance of resilience in navigating global economic and regional geopolitical headwinds. We are confident that the Middle East's business community, supported by the expertise of the accountancy profession, will continue to demonstrate its ability to innovate and thrive amid these challenges."
