The International Monetary Fund on Tuesday lowered its 2025 GDP growth forecast for Saudi Arabia, while flagging headwinds for the broader region, including a more gradual resumption of oil production.

Oil-dependent governments are coming under pressure from the lowest crude prices since the COVID-19 pandemic, with officials preparing policy responses for a drop in revenue such as issuing more debt and reducing spending.

In its World Economic Outlook, the IMF cut the forecast for Saudi Arabia‘s GDP growth in 2025 to 3 per cent versus a January estimate of a 3.3 per cent increase. IMF also reduced the projection for growth in 2026 by 0.4 percentage point to 3.7 per cent.

Meanwhile, the growth projection for the broader Middle East and Central Asia region was lowered to 3 per cent this year versus a 3.6 per cent estimate earlier.

“Compared with that in January, the projection is revised downward, reflecting a more gradual resumption of oil production, persistent spillovers from conflicts, and slower-than-expected progress on structural reforms,” the report said.

Saudi Arabia, the world’s top oil exporter and a G20 economy, had been expected to see a sharp growth rebound in 2025 on the back of higher crude output, with an October Reuters poll forecasting expansion of 4.4 per cent.

But market volatility, weaker prices, and mounting global risks now threaten to weigh on the recovery, even as the kingdom pushes to diversify its economy beyond oil.

Still, Gulf oil exporters are seen as relatively well insulated from oil market volatility thanks to higher reserves, lower debt and ongoing diversification efforts, economists say.

S&P raised Saudi Arabia’s long-term sovereign credit rating to ‘A+’ in March, citing stronger institutions and solid non-oil growth under Vision 2030, while cautioning that weaker oil revenue could widen fiscal deficits and lead to delays or cutbacks in major infrastructure projects.

The Emirates Integrated Telecommunications Company (du) on Tuesday announced a Dhs2bn ($544.54m) hyperscale data centre deal with Microsoft.

The hyperscale data centre, to be built and operated at a cost of around Dhs2bn, will have Microsoft as the main tenant and its capacity will be delivered in tranches, du said in a statement.

Hyperscale centers are large facilities that are mainly used to provide data storage and cloud computing services to businesses at scale.

The deal, made during Dubai AI Week, “represents a pivotal leap in our strategic goal to revolutionise the digital ecosystem of the UAE“, Fahad Al Hassawi, CEO of du, said.

Currently, du operates five data centres across the UAE, which has been heavily investing to become a global hub for AI outside of the US.

Abu Dhabi National Oil Company (ADNOC) has launched ‘Make it with ADNOC’, a mobile app designed to accelerate local manufacturing and support the UAE’s industrial expansion under the national ‘Make it in the Emirates’ initiative.

The first-of-its-kind tool gives manufacturers, SMEs, and entrepreneurs real-time visibility into ADNOC’s procurement pipeline — offering what the company calls a “clear pathway” to long-term manufacturing opportunities within its supply chain.

Unveiled on Tuesday at ADNOC’s headquarters, the launch event brought together senior officials from the Ministry of Industry and Advanced Technology (MoIAT), Abu Dhabi Department of Economic Development, ADIO, and major private sector players.

How ADNOC’s new app helps

The app aims to de-risk investment decisions and streamline supplier onboarding by making ADNOC’s purchasing needs transparent and accessible. It is positioned as a core enabler of ADNOC’s In-Country Value (ICV) programme — which has already redirected Dhs242bn ($65.9bn) into the local economy and helped employ 17,000 Emiratis in the private sector since 2018. ADNOC plans to inject an additional Dhs200bn ($54.5bn) over the next five years.

ADNOC executive director Yaser Saeed Almazrouei said the app will “empower businesses to engage directly with ADNOC and unlock mutual value”.

Officials praised the initiative as a strategic leap forward for the UAE’s Operation 300bn and Falcon Economy vision — two key frameworks aimed at driving industrial self-sufficiency, innovation, and global competitiveness.

MoIAT Undersecretary Omar Al Suwaidi said the app deepens the ministry’s strategic partnership with ADNOC and gives manufacturers the data needed to make better-informed investment decisions. “This platform will help identify locally manufacturable products and strengthen national supply chains,” he noted.

What’s next

The app’s launch comes ahead of the Make it in the Emirates forum, set for May 19–22 at ADNEC in Abu Dhabi.

More than 500 companies are expected to participate, with thousands of new offtake agreements to be announced across 12 strategic sectors.

ADNOC’s app is part of a broader push by Abu Dhabi to boost industrial GDP, develop homegrown capabilities, and attract strategic investments.

Read: AIQ secures $340m contract to deploy agentic AI across ADNOC ops

Jetour UAE has experienced great success, achieving a 230 per cent year-on-year growth from 2023 to 2024, with its exclusive partner, Elite Group Holding. This expansion has allowed Jetour to strengthen its market share, expand its customer base, and become a leading SUV brand in the UAE since its successful market entry.

Elite Group Holding drives innovation across automotive, e-commerce, investments, and real estate and contracting.

With exclusive partnerships including Jetour, Soueast, and Zenvo, their automotive arm features The Elite Cars showroom and ART Elite Car Rental.

The group also excels in contracting (ZRT) and e-commerce, with plans for over 20 new UAE facilities to expand their significant regional impact.

Jetour growth fuelled by these factors

Jetour’s strong growth is fuelled by its focus on high-performance, adventure-ready vehicles designed for the UAE market.

The brand is strategically increasing its physical presence, emphasing innovation, customer satisfaction, and accessibility, with the new Deira showroom joining Al Quoz and Abu Dhabi, and more planned across the UAE.

Furthering its success, Jetour is expanding its T-Series lineup with the T2 IDM, a plug-in hybrid T2 offering efficient off-road performance and optimal fuel balance. The recently launched Jetour T1, previewed in late 2024, is already impacting UAE roads, enriching the brand’s SUV offerings to cater to a diverse customer base.

Commenting on this milestone, Jesico Gonsalves, GM of Jetour UAE, said: “The remarkable reception of Jetour in the UAE underscores the brand’s ability to meet the expectations of modern drivers. Our growth reflects the trust our customers place in us and the strength of our strategic partnership with Elite Group Holding. With continuous investment in product innovation and customer engagement, we remain dedicated to redefining the SUV landscape in the UAE.”

As Jetour began its expansion in the UAE, the brand’s core strategy revolves around introducing advanced vehicles that balance powerful performance, the strategic alliance with Elite Group Holding provides the expertise support necessary for Jetour to further establish its dominance in the SUV segment.

A key differentiator in this pursuit is the exceptional 10-year/1 million KM warranty, designed to build unparalleled customer trust and confidence in the Jetour brand across the UAE.

Read: From Detroit to Dubai: Key trends reshaping the global automotive landscape

In the bustling Gold Souk in Dubai, dubbed the “City of Gold”, 22-karat gold jewellery is a traditional favourite for weddings, religious celebrations, and as a family investment.

Yet with bullion prices hitting record highs above $3,400 an ounce, there are signs of change, as buyers look to diamonds and lighter gold jewellery, instead.

Read-UAE 24K gold price hits Dhs360 per gram: Will the rally continue?

While US tariffs and other factors have added fire to already hot demand for gold as an investment, the impact is different for gold jewellery, according to Andrew Naylor, head of Middle East and Public Policy at the World Gold Council (WGC).

“In markets like Dubai, this creates a two-fold effect: on one hand, you see stronger interest in gold as a safe-haven asset, on the other, high prices dampen jewellery demand.”

At Dubai’s Gold Souk, retailers told Reuters they are seeing this trend, as current prices prompt shoppers to look for alternatives.

“There are no potential customers nowadays because of the gold prices,” said Fahad Khan, a sales representative at retailer Damas Jewellery.

“It’s a little bit tough to afford gold, so I think it’s better to go with diamonds,” said Lalita Dave, 52, as she browsed around the Gold Souk.

Dubai: A magnet for gold buyers

Dubai has been a magnet for gold buyers for at least 80 years, starting with Iranian and Indian traders, both cultures sharing a tradition of 22-karat jewellery for adornment and investment.

Yet as gold prices rose by 27 per cent last year, demand for gold jewellery in the UAE fell by around 13 per cent, outpacing an 11 per cent drop globally, according to the WGC.

Jewellery demand could face further pressure across key regions in 2025 if gold prices remain elevated or volatile, the WGC said in its gold demand trends report published in February.

Price swings, more than price levels, are increasingly shaping consumer behaviour, particularly in India, it noted.

Indian purchasing patterns

Shifts in Indian purchasing patterns often ripple through Gulf markets such as the UAE, where buyers are a key driver of sales.

Goldman Sachs recently raised its end-2025 gold forecast to $3,700 per ounce and said prices could climb as high as $4,500.

“Higher gold prices are likely to dampen demand for jewellery, in a classic example of how the best cure for high prices is high prices,” said Russ Mould, investment director at AJ Bell.

Lab-grown diamonds

One sign of economising has been the rise of lab-grown diamonds.

India exported $171 million worth of lab-grown diamonds to the UAE in 2024, up almost 57 per cent from $109 million two years earlier, data from the Gem and Jewellery Export Promotion Council showed.

India’s exports of cut and polished diamonds to the UAE in the April–November 2024 were up 3.7 per cent.

UAE ranked third in global diamond imports in 2023, trade data shows, its primary trade partners including India, South Africa, and Belgium.

While the UAE accounted for just 1.5 per cent of the global diamond jewellery market by revenue in 2023, it is projected to grow by 5.9 per cent annually to reach nearly $2 billion by 2030, according to Grand View Research.

That outpaces the global growth forecast of 4.5 per cent and makes the UAE the fastest growing market in the Middle East and Africa.

Trade tensions

One impact from recent trade tensions with the US has been accelerated talk about finding alternative markets and production hubs, two executives at major Indian diamond exporters told Reuters.

If tensions persist, potentially spanning years, one of the sources speaking to Reuters on condition of anonymity said his company’s contingency plans included shifting some Indian production overseas, including to the UAE.

Shamlal Ahamed, managing director of international operations at retailer Malabar Gold & Diamonds, told Reuters the rise in lab-grown diamond jewellery sales in the UAE appeared to be driven more by design preferences than pricing and he remained bullish on gold jewellery demand.

“While price-conscious buyers may wait for a dip, our experience shows that such declines are often short-lived, with buyers quickly adapting to new price levels.”