Experts claim that despite oil shortages and geopolitical unrest, the Middle East economy is still strong due to higher-than-expected non-oil GDP growth in the United Arab Emirates and Saudi Arabia.
According to the most recent PwC Middle East Economy Watch, the non-oil sector is expected to continue growing strongly, supported by a stronger-than-expected non-oil GDP performance in 2023 and Purchasing Manager Indicators (PMI) in Saudi Arabia and the United Arab Emirates that are firmly in expansionary territory in early 2024. As a result, the regional economy is expected to remain flexible.
The UAE and Saudi Arabia’s non-oil economies grew in March thanks to a notable increase in new orders and output growth. The world’s largest oil exporter’s economy is expected to grow by 2.7% this year and 5.5% in 2025 as part of its Vision 2030 diversification agenda. This is in addition to the 1.1% decline in GDP last year caused by lower oil output. The kingdom has been enacting initiatives and policy reforms to reduce its reliance on oil revenue, expand its non-oil economic base, accelerate the growth of its domestic industries, and promote the development of industries such as technology, real estate, tourism, and infrastructure.
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