UAE, Saudi to lead GCC non-oil GDP growth: IMF

UAE, Saudi to lead GCC non-oil GDP growth: IMF

Published: Wed 20 Dec 2023, 10:47 PM

The UAE and Saudi Arabia will lead the growth of the non-oil sector in the short-term as the GCC region in general remains strong, driven by higher domestic demand, increased gross capital inflows, and reform implementation, the International Monetary Fund said in its latest report.

The UAE posted a robust non-oil growth of 5.9 per cent in the first-half of 2023, driven by strong domestic demand, while Saudi Arabia’s H1 2023 non-hydrocarbon GDP (non-oil private and government activities) growth averaged around 4.5 per cent, the IMF said in its report titled “Economic Prospects and Policy Priorities for the GCC Countries.”

The combined non-hydrocarbon GDP growth of the region is estimated at a buoyant 4.3 per cent in 2023 after a robust 5.3 per cent surge in 2022. However, oil production cuts will lower the GCC GDP growth to 1.5 per cent in 2023. The slowdown in overall growth from the exceptional 7.9 per cent registered in 2022 mainly reflects oil production cuts slowing hydrocarbon GDP. “While the GCC hydrocarbon GDP grew by 7.8 per cent in 2022 supported by global cyclical momentum, it is expected to register a negative growth of around 1.0 per cent in