GCC poised for strong growth in 2025: ICAEW report

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The Gulf Cooperation Council (GCC) region is set for a sharp economic rebound, with growth expected to surge to 4.4 per cent in 2025, more than doubling from projected figures for 2024, according to the latest ICAEW Economic Insight report prepared by Oxford Economics.

The report forecasts that while economic growth in the broader Middle East is set to reach 2.1 per cent in 2024, it will accelerate significantly to 3.7 per cent by 2025.

The GCC’s non-energy sectors, including tourism, trade, and finance, are pivotal in driving this growth, with expectations of a 4.2 per cent expansion in 2024 and 4.4 per cent in 2025.

GCC’s diversification efforts to bear fruit

Scott Livermore, chief economist at Oxford Economics Middle East and ICAEW Economic Advisor, said the region’s strategic investment in non-oil sectors is bolstering resilience. “The GCC’s proactive and strategic investment, combined with a gradual recovery in oil production, is setting the stage for robust growth in 2025,” Livermore said.

Recent Purchasing Managers’ Index (PMI) data further supports this outlook, signalling strong domestic activity.

Anticipated interest rate cuts are also expected to boost consumption and private investment, enhancing the region’s diversification efforts.

Hanadi Khalife, head of Middle East at ICAEW, highlighted the region’s adaptability amid global and geopolitical challenges, stating, “The Middle East business community, supported by the accountancy profession, continues to demonstrate its ability to innovate and thrive in these conditions.”

Read: GCC non-oil growth remains strong despite fiscal uncertainty, reveals PwC report