Video|16 January 2025

MENA | GCC Economic Outlook 2025: What’s Ahead?

Scott Livermore

Chief Economist & Managing Director

We have recently published our outlook for the GCC in 2025.
The report highlights that we expect regional GDP growth to nearly double to 3.6% in 2025, above our global forecast of 2.8%. Similar to last year, OPEC+ decisions, a local pursuit towards diversification, US Federal Reserve policy, and geopolitics will remain central to the near-term outlook for the GCC.

We’re optimistic oil production gradually increases, providing a boost to the region’s economies. Meanwhile, we think non-energy sectors will sustain robust 4% expansion.
US trade policy under President Donald Trump adds a layer of uncertainty to the forecast, but we see no direct threat of tariffs for the region. And while we think the regional conflict will remain unresolved, we see lower odds than last year of an escalation with a major disruption to oil supply.

Our latest videos

MENA in a Minute

Download Report

Click here to watch our previous MENA in a Minute videos

Relevant Content

GCC: Key themes shaping city economies in the near term

For Gulf cities, the near-term outlook will be tied not only to the global macroeconomic backdrop, but also the progress of the diverse visions and strategies in the region. With the aim to diversify their economies and reduce the dependence on oil, Gulf states continue to invest in the non-oil economy and implement various reforms. That said, oil revenues remain key to funding diversification efforts.

Find Out More →

Iran-Israel tensions should dissipate after latest flare up

The military escalation between Iran and Israel has ratcheted up fears of an expanded Middle East conflict. The threat of counter strikes by Israel is clearly heightened, but we think both sides will ultimately seek to avoid a costly all-out war.

Find Out More →