Despite numerous shocks over the past few years, the GCC region remains a “bright spot” amid global uncertainty, according to Kristalina Georgieva, managing director of the International Monetary Fund.
Unemployment remains low, inflation is under control, major port exports have rebounded and international flight arrivals remain stable, Ms Georgieva told the annual GCC ministerial meeting in Doha on Thursday.
Owing to various positives, the IMF expects GCC economic growth to rebound this year and reach nearly 4 per cent in 2025 as oil production cuts are gradually eased.
“Over the medium term, non-hydrocarbon activity is set to remain strong on the back of ambitious reform efforts,” Ms Georgieva said.
However, she also highlighted some potential risks. “Fluctuations in oil prices and production could reduce financial buffers and have negative spillovers to the non-oil economy,” she said.
The Opec+ group has extended production cuts until the end of 2025 amid the drop in oil prices on concerns of sluggish demand. On June 2, the oil bloc agreed to extend output cuts of 3.66 million barrels per day, which were initially planned to end this year, until the end of next year.
On Wednesday, a panel meeting of Opec+ members decided not to make any changes to its production policy. However, Ms Georgieva said, regardless of oil prices fluctuations, “strong reform momentum should be maintained” in the GCC region while managing risks.
GCC countries, especially Saudi Arabia and the UAE – the region’s two largest economies – are continuing to focus on diversification of their economies, with new projects.
The UAE Central Bank expects the country's economy to expand by 4 per cent this year, an increase from its June estimate of 3.9 per cent, on the back of a boost from its non-oil sector as the Emirates moves forward with its diversification strategy.
Saudi Arabia’s economy is projected to grow to 4.7 per cent in 2025 before averaging at 3.7 per cent in the following years, the Washington-based lender predicted earlier.
Saudi Arabia expects its budget deficit to widen this year and next as it boosts spending to finance its economic diversification agenda under the Vision 2030 plan.
Oman has also enacted reforms to boost and diversify its economy, reducing its reliance on the energy sector, most notably on oil and hydrocarbons.
The Gulf state launched a three-year fiscal stability programme in October 2022 to add momentum to its economic recovery from the pandemic-driven slowdown and support the development of its financial sector.
Ms Georgieva said the GCC goal should be to achieve “digital, green and inclusive growth” while emphasising three reform priority areas.
First, many GCC countries are undertaking consolidation on fiscal policies but more needs to be done to build sufficient savings for future generations. Tax reforms are progressing but need further enhancement, including wider corporate tax reforms. Rationalising public expenditure, such as reducing energy subsidies, is key to fiscal consolidation and supporting the vulnerable, she said.
Second, she said, the progress on diversification needs to be accelerated and the downsides coming with some reforms need to be properly managed. For example, digitalisation is key to the GCC's economic diversification strategy and there are significant investments in the latest technology but it is crucial to manage the associated risks effectively.
Lastly, Ms Georgieva said integration into regional and global trade and financial systems will play an important role in economic diversification. “Foreign investments would not only unlock financing for costly reforms, but also bring know-how and technology,” she added.
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if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
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Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
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Torque: 730Nm at 4,000-7,000rpm
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Price: expected to start at Dh1,432,000
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs: Audi e-tron
Price, base: From Dh325,000 (estimate)
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Transmission: Single-speed auto
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Range: 400 kilometres
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Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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Engine: 51.5kW electric motor
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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