GCC's Economic Revival: Saudi & UAE Lead Growth Surge

Economic growth in Saudi Arabia is set to accelerate next year with higher oil output, while the UAE is expected to be the region's fastest-growing economy. The diversification away from oil dependency remains crucial for long-term growth across Gulf Cooperation Council (GCC) states.

Economic growth in Saudi Arabia is anticipated to pick up pace next year, fueled by an increase in oil output, following two years of modest performance. According to a Reuters poll of economists, other Gulf Cooperation Council (GCC) states are also set for robust growth.

The oil production curbs implemented by OPEC+ since late 2022 are expected to ease by December, potentially boosting revenues for the six GCC countries. Despite a weak outlook for crude oil prices, projected to lie around $76.75 per barrel next year from $74.8 currently, Saudi Arabia plans to reverse past production cuts, thereby enhancing its market share and fostering faster economic growth.

However, the quest for economic diversity remains high on the agenda for GCC economies. Although oil revenues continue to dominate, non-oil sectors are showing promise. The UAE stands out with predicted growth of 4.9% next year, benefiting from its larger non-oil economy, especially in sectors like tourism and financial services.

(With inputs from agencies.)