MENA poised for strong economic growth

MENA poised for strong economic growth

Giga-investment projects, elevated energy prices, greater fiscal responsibility, and improving demographics are helping drive a resurgence in growth in the Middle East and North Africa (Mena) region, a study showed on Monday.

“Mena stock valuations, as measured by price-to-earnings ratios, have declined from their March 2022 peak, and now sit comfortably below their 10-year average of 13.5x.1Earnings growth in the region is forecast to increase by mid-single digits in 2023, driven by rising investment and consumption,” said Salah Shamma, Head of Mena Equities for Franklin Templeton’s Emerging Markets Equity Group.

The Gulf Cooperation Council (GCC) has big spending plans, especially in Saudi Arabia, the region’s largest economy. As part of its Vision 2030 economic transformation plan, the government has announced its intention to invest over US$2 trillion in the domestic economy between now and the end of this decade.

Giga-projects have been the cornerstone of the multi-year reform process underway in the region. The imperatives of diversifying the economy away from oil, attracting capital and talent, and generating jobs for a young population have driven sustained momentum on the projects despite local and global headwinds, Franklin Templeton said in its report.

In Dubai, its economic Agenda 2033 aims to double the size of economy