Gulf Economies to Accelerate Amid Oil Production Surge and Diversification

According to a recent Reuters poll, Gulf economies are expected to experience accelerated growth in 2025, fueled by ramped-up oil production and strategic diversification efforts. Despite past oil output reductions and subdued energy prices, countries like Saudi Arabia and the UAE are enhancing GDP growth through these measures.

Saudi Arabia's GDP is projected to grow by 3.8% in 2025, nearly tripling last year's growth rate of 1.3%, while the UAE's economy is set to expand by 4.8% in 2025, outperforming regional peers. Diversification away from oil, including increased tourism initiatives, supports this economic momentum.

While inflation across the Gulf is predicted to remain within a modest range of 1.0% to 2.5%, regional economies are benefiting from a weakened US dollar, which mitigates FX-driven import costs. Qatar also anticipates a growth surge with its LNG expansion project, reaching its fastest expansion in 13 years.

(With inputs from agencies.)