The GCC region is expected to witness a remarkable economic rebound, with growth in the non-oil sectors predicted to reach 4.4% in 2025.
The latest ICAEW Economic Insight report for the Middle East, prepared by Oxford Economics, indicates that the Middle East’s economic growth is projected at 2.1% in 2024, a figure that is expected to increase to 3.7% in 2025.
The report highlights the importance of the growth of the non-oil economy. Sectors including tourism, trade, and finance, are becoming crucial drivers of the GCC’s economic diversification efforts. These are set to experience 4.2% growth this year and 4.4% in 2025.
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.
The report further stressed that recent PMI readings suggest strong domestic activity and anticipated interest rate reductions are expected to further bolster consumption and private investment.
