July 29, 2025

Gulf Economies Poised for Growth Amid Oil Recovery and Diversification

Gulf economies are entering a new phase of recovery, buoyed by rising oil prices and a renewed push toward economic diversification. According to the latest forecasts, countries across the GCC are expected to see stronger GDP growth in the second half of 2025, with higher crude output and non-oil revenue streams leading the rebound.

Saudi Arabia, the UAE, and Qatar are all projected to post higher growth rates than earlier anticipated, thanks to improved oil market conditions and strategic investments in tourism, logistics, and technology sectors.

The UAE is forecast to grow 4.8% in 2025 – stronger than Saudi Arabia, Qatar, Oman and Kuwait – supported by rising oil output and diversification initiatives in tourism, infrastructure, and innovation. With record-breaking tourism numbers and expanding global trade links, the country is positioning itself as a regional hub for sustainable economic growth.

Experts say this recovery marks a pivotal moment for Gulf states, as they balance traditional energy revenues with long-term plans for innovation, investment, and resilience in an evolving global economy.

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