Latest news with #GulfEconomicUpdate
Gulf Insider
7 hours ago
- Business
- Gulf Insider
Qatar's Economy to Grow 6.5 Per Cent by 2027
Qatar's economy is set to accelerate significantly over the next two years, with growth projected to rise from 2.4 per cent in 2025 to an average of 6.5 per cent in 2026–2027, according to the World Bank's Gulf Economic Update. The sharp rise in growth will be driven primarily by the North Field LNG expansion, which is expected to boost Qatar's liquefied natural gas (LNG) output by 40 per cent, transforming the country's hydrocarbon sector performance. While hydrocarbon growth is expected to remain modest at 0.9 per cent in 2025, the World Bank anticipates a major turnaround once the new LNG capacity comes online, cementing Qatar's position as a global energy leader. In parallel, non-hydrocarbon sectors such as education, tourism, and services continue to show strong momentum, supported by infrastructure investment and international partnerships. This diversification effort is central to Qatar's long-term economic vision. Key insights from the World Bank report: Qatar's economic growth: 2.4 per cent in 2025, rising to 6.5 per cent in 2026–2027 2.4 per cent in 2025, rising to 6.5 per cent in 2026–2027 Gulf-wide GDP: Projected to reach 3.2 per cent in 2025 and 4.5 per cent in 2026 Projected to reach 3.2 per cent in 2025 and 4.5 per cent in 2026 Non-oil growth across the GCC: Driven by structural reforms, investment, and private sector activity Driven by structural reforms, investment, and private sector activity 2024 regional growth: Improved to 1.7 per cent, up from just 0.3 per cent in 2023 Despite the upbeat forecast, the World Bank cautioned that global trade tensions and potential economic slowdown remain risks for Gulf economies. To safeguard future prosperity, it urged continued focus on economic diversification, innovation, and youth job creation. Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said: 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity. 'Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability' Also read: Qatar Launches World's Largest 3D-Printed Building Project With Two Futuristic Schools
Hi Dubai
7 hours ago
- Business
- Hi Dubai
UAE Economy Set to Grow 4.6% in 2025 as Non-Oil Sectors Drive Momentum
The UAE's economy is on track for robust growth, with the World Bank projecting a 4.6% expansion in 2025 and further strengthening to 4.9% through 2026 and 2027, driven primarily by non-oil sectors. According to the latest Gulf Economic Update , released by the World Bank based on data through June 1, non-oil industries will remain the engine of growth across the UAE, expanding by 4.9% in 2025. This performance reflects the country's ongoing efforts to diversify its economy and reduce reliance on hydrocarbons. The wider GCC region is also expected to rebound, with growth forecast at 3.2% in 2025 and rising to 4.5% in 2026. The report highlights a regional economic uptick from 0.3% in 2023 to 1.7% in 2024, fueled by strong private consumption, increased investment, and structural reforms. GCC countries are navigating global headwinds, including uncertainties around trade and the risk of a broader economic slowdown. The World Bank stresses the need for accelerated reform to bolster regional trade and economic diversification. Safaa El Tayeb El-Kogali, World Bank Director for the GCC, praised the bloc's resilience and emphasized the importance of 'strategic fiscal policies, targeted investments, and a strong focus on innovation and job creation.' The report also explores the impact of fiscal policy on stability, noting that public spending has helped shield GCC economies during downturns. A one-unit rise in fiscal spending can lift non-oil output by up to 0.45 units, underscoring the importance of smart budget strategies amid fluctuating oil prices. News Source: Emirates News Agency
Qatar Tribune
15 hours ago
- Business
- Qatar Tribune
Qatar's economy to grow at 6.5% in 2026-2027, says World Bank
QNA Riyadh The World Bank projected that the economic growth in the State of Qatar is to remain stable at 2.4% in 2025, before accelerating to an average of 6.5% in 2026-2027 due to the expansion of LNG capacity. These improved prospects are supported by strong non-hydrocarbon growth, particularly in education, tourism, and services, the World Bank said in its report 'Gulf Economic Update.' The hydrocarbon sector is expected to grow timidly in 2025 (0.9%), before undergoing a significant boost in 2026 thanks to the North Field LNG expansion coming online, supporting a 40% rise in LNG output. Non-hydrocarbon growth is expected to remain robust thanks to infrastructure upgrades and international investments, the report said. 'Economic growth across the Gulf Cooperation Council (GCC) is projected to increase in the medium-term to 3.2% in 2025 and 4.50% in 2026. This growth is likely to be driven by the expected rollback of OPEC+ oil production cuts and robust expansion of non-oil sectors,' according to the report. page 6
Qatar Tribune
15 hours ago
- Business
- Qatar Tribune
World Bank projects Qatar's growth to accelerate to 6.5%
QNA DOHA The World Bank projected that the economic growth in the State of Qatar is to remain stable at 2.4% in 2025, before accelerating to an average of 6.5% in 2026-2027 due to the expansion of LNG capacity. These improved prospects are supported by strong non-hydrocarbon growth, particularly in education, tourism, and services, the World Bank said in its report 'Gulf Economic Update.' The hydrocarbon sector is expected to growth timidly in 2025 (0.9%), before undergoing a significant boost in 2026 thanks to the North Field LNG expansion coming online, supporting a 40% rise in LNG output. Non-hydrocarbon growth is expected to remain robust thanks to infrastructure upgrades and international investments, the report said. 'Economic growth across the Gulf Cooperation Council (GCC) is projected to increase in the medium-term to 3.2% in 2025 and 4.50% in 2026. This growth is likely to be driven by the expected rollback of OPEC+ oil production cuts and robust expansion of non-oil sectors,' according to the to the latest edition of the report, regional growth was 1.7% in 2024 – an improvement from 0.3% in 2023. The non-hydrocarbon sector remained resilient, expanding by 3.7% — largely fueled by private consumption, investment, and structural reforms across the GCC. At the same time, global trade uncertainty presents challenges, as a global economic slowdown remains a key downside risk for the region. To mitigate these risks, GCC countries need to accelerate economic diversification reforms and strengthen regional trade. 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity,' Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said. 'Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability,' she added.
Gulf Today
21 hours ago
- Business
- Gulf Today
World Bank expects 4.9% growth for UAE economy in 2026, 2027
The World Bank has projected that the UAE's economic growth will continue on an upward trajectory, reaching 4.6 per cent in 2025 and stabilising at 4.9 percent during 2026 and 2027. The World Bank confirmed that the UAE's non-oil sectors continue to play a key role as a main driver of growth, with an expected growth rate of 4.9 percent in 2025. According to the latest edition of the Gulf Economic Update (GEU) issued by the World Bank, which is based on information available as of 1st June, economic growth in the GCC countries is expected to rise in the medium term, reaching 3.2 percent in 2025 and 4.5 percent in 2026. According to the World Bank, strong expansion in non-oil sectors is contributing to the growth achieved by Gulf economies. According to the latest edition of the GEU, the region witnessed notable economic growth of 1.7 percent in 2024, compared to 0.3 percent in 2023. The report noted that the non-oil sector continued to demonstrate its resilience, with a 3.7 percent increase. This growth was significantly driven by private consumption, investment, and structural reforms implemented in GCC countries. In Bahrain, growth is expected to stabilise at 3.5 percent in 2025, while economic growth in Kuwait is expected to recover significantly and reach 2.2 percent in 2025. Growth in the Sultanate of Oman is expected to gradually accelerate to 3 percent in 2025, compared to 1.7 percent in 2024, 3.7 percent in 2026, and 4 percent in 2027. The report expects economic growth in Qatar to remain stable at 2.4 per cent in 2025, compared to 2.6 percent in 2024, before accelerating to an average of 6.5 percent in 2026–2027. In the Kingdom of Saudi Arabia, the World Bank report expects economic growth to continue recovering to 2.8 percent in 2025 and reach an average of 4.6 percent in 2026–2027. The World Bank report also highlighted the challenges associated with uncertainty surrounding global trade, noting that the risk of a global economic slowdown continues to negatively impact the region. It recommended accelerating reforms aimed at diversifying economic activity and enhancing regional trade to mitigate these risks in GCC countries. Safaa El Tayeb El-Kogali, Division Director for the GCC countries at the World Bank, said 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity.' She added, ""Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability." The report titled "Smart Spending, Stronger Outcomes: Fiscal Policy for a Thriving GCC', discusses the effectiveness of fiscal policy in ensuring macroeconomic stabilization and encouraging growth. The topic is particularly relevant as oil price fluctuations strain budget balances in several countries across the region. The report finds that government spending in the GCC region has effectively stabilized economies, especially during recessionary episodes. The findings show that a 1-unit increase in fiscal spending can boost non-hydrocarbon output by 0.1-0.45 units in the region. WAM
