RIYADH: Gulf Cooperation Council economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds.
In its latest economic update, prepared with Oxford Economics, the Institute of Chartered Accountants in England and Wales said Saudi Arabia and the UAE will lead regional growth despite weaker crude prices and rising geopolitical uncertainty.
The revision comes amid stronger-than-expected gains in OPEC+ production and continued investment in infrastructure, tourism, and technology. In May, the International Monetary Fund said that the GCC region’s economy will grow by 3 percent in 2025, driven by gains in the non-oil sector.
The analysis by ICAEW affirms the progress of the economic diversification efforts undertaken by GCC member states, including Saudi Arabia and the UAE, aimed at strengthening their non-oil sectors and reducing reliance on crude revenues.
Hanadi Khalife, head of Middle East at ICAEW, said: “The GCC economies are showing remarkable adaptability amid shifting global trade dynamics.”
