GCC poised for strong growth in 2025: ICAEW report

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The Gulf Cooperation Council (GCC) region is set for a rapid economic recovery, with economic growth expected to reach 4.4 percent in 2025, more than double the forecast for 2024, according to the latest data. ICAEW Economic Insight report prepared by Oxford Economics.

The report forecasts that economic growth in the broader Middle East region will reach 2.1% in 2024, but will accelerate significantly by 2025, reaching 3.7%.

Non-energy sectors of the GCC countries, including tourism, trade and finance, are playing a key role in driving this growth. It is expected to grow by 4.2% in 2024 and 4.4% in 2025.

GCC’s diversification efforts bear fruit

Scott Livermore, chief economist at Oxford Economics Middle East and an economic adviser to ICAEW, said the region’s strategic investment in non-oil sectors was strengthening resilience. “The GCC’s proactive and strategic investment, combined with a gradual recovery in oil production, is setting the stage for solid growth in 2025,” Livermore said.

The latest PMI data confirm these forecasts, pointing to strong economic activity in the domestic market.

Expected interest rate cuts should also boost consumption and private investment, supporting the region’s diversification efforts.

Hanadi Khalife, Head of the Middle East Region at ICAEW, highlighted the region’s ability to adapt in the face of global and geopolitical challenges, stating: “The Middle East business community, supported by the accounting profession, continues to demonstrate its ability to innovate and thrive in this environment.”

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