MENA Economic Growth Set to Accelerate in 2025
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The Middle East and North Africa (MENA) region is expected to see a significant boost in economic growth in 2025, with Moody’s forecasting an increase to 2.9% from 2.1% in 2024. This growth is attributed to higher oil production and large-scale investment projects, particularly in Saudi Arabia.
Saudi Arabia Leads the Way with Vision 2030
Saudi Arabia’s Vision 2030 program is at the heart of the region’s economic acceleration. Moody’s highlights that government spending and investments through sovereign wealth funds will have the most substantial impact, driving non-oil economic activities.
Oil Production Cuts to Ease Supporting Growth
The easing of OPEC+ oil production cuts will play a crucial role in the region’s growth. Hydrocarbon-exporting nations, including Saudi Arabia, the UAE, Iraq, Kuwait, and Oman, are projected to see their GDP growth rise to 3.5% in 2025, up from 1.9% in 2024.
Key Developments Across the Region
Qatar
Growth will be fueled by expansions in the petrochemical sector and liquefied natural gas production, with new facilities expected to be operational between 2026 and 2030.
Kuwait
Major infrastructure projects, such as a new port and airport terminal, will drive non-oil economic growth.
UAE
While some infrastructure projects are nearing completion, non-oil growth will remain strong at around 5% in 2025.
Outlook Remains Stable
Moody’s maintains a stable outlook for the region’s credit fundamentals over the next year, with large-scale investments supporting long-term development and diversification agendas.
Global consultancy Oxford Economics echoes these projections, estimating MENA’s GDP growth at 3.6% in 2025, surpassing the global forecast of 2.8%.
The region’s economic future looks promising, with strategic investments and easing oil production cuts paving the way for robust growth.
This article was previously published on saudimoments. To see the original article, click here