Oman’s economic outlook remains favorable, with expected real growth of 1.5% in 2024 driven by increased gas production and diversification efforts. The region is projected to rebound to 2.8% and 4.7% in 2024 and 2025 due to anticipated global demand recovery and increased investments in non-hydrocarbons and renewable energy. Despite diversification efforts, hydrocarbon receipts will remain crucial for shaping fiscal and external balances, with GCC’s fiscal surplus expected to narrow, and the current account surplus to reach 7.5% of GDP.
Quality education is highlighted as a key factor in fostering long-term economic growth in GCC countries. While improvements have been made in learning outcomes over the past decade, there is still room for enhancement to compete at the global level. The report suggests investing in effective strategies to improve learning and education quality, such as building foundational skills from early childhood, improving teaching practices, and leveraging learning assessments for informed policy decisions.
In Bahrain, the economic outlook depends on oil market prospects and structural reforms. Growth is expected to reach 3.5% in 2024 with the non-oil sector driving growth, while Kuwait’s economy is projected to recover to 2.8% in 2024 supported by fiscal policies, higher oil production, and increased outputs. Qatar’s real GDP growth is expected to strengthen to 2.1% in 2024 with robust non-oil growth driven by the tourism sector, while Saudi Arabia’s GDP is expected to grow by 2.5% in 2024 driven by robust non-oil private activities.
In the UAE, real GDP growth is projected to accelerate to 3.9% in 2024 fueled by a significant oil production hike and a recovery in global economic activity. Non-oil sectors such as tourism, real estate, construction, transportation, and manufacturing are expected to drive economic growth with non-oil output expanding at 3.2%. Overall, the economic outlook for GCC countries is positive, with a focus on diversification efforts and investments in quality education to drive sustainable growth.
