Trade tension remains a key risk facing the Middle East and North Africa's economic prospects, the International Monetary Fund said on Thursday, with the indirect impact of US tariffs expected to drag down growth.
The IMF projects the Mena economy to grow by 2.6 per cent this year, down 1.3 percentage points from its previous estimate. Growth is expected to pick up to 3.4 per cent next year.
“Quite a downgrade,” IMF managing director Kristalina Georgieva said during a news briefing.
The IMF has also cut its 2025 growth prospects for Saudi Arabia, the world's largest oil exporter, from 3.3 per cent to 3 per cent. The UAE economy is expected to grow by 4 per cent this year before growing by 5 per cent in 2026.
The fund's updated World Economic Outlook attributed the region's downgrade to a more gradual resumption of oil production, spillovers from conflicts, and slower-than-expected progress on reforms.
The indirect impact of US tariffs are expected to have a more pronounced effect on economic outlook for the Mena region than direct exposure.
The US dollar has fallen since Mr Trump announced his larger-than-expected tariff agenda earlier this month. The US dollar index, which measures the greenback against a basket of foreign currencies, fell to 99.34 on Thursday.
“If you're an oil exporter … and get your revenue in dollars, when the dollar weakens, that creates a big problem for your fiscal position,” Ms Georgieva said. However, oil importers could benefit from a weaker dollar, she said.
Oil prices are expected to average $66.9 per barrel this year before falling to $62.4 in 2026.
The fund earlier this week lowered its 2025 global growth forecast to 2.8 per cent due to the uncertainty surrounding tariffs.
For the Mena region, the indirect impact on tariffs could also lead to lower oil prices, and the financial stability could impact capital flows into countries with high levels of debt.
“The recent escalation in trade tension has already damaged global growth prospects while triggering intense financial volatility,” IMF Middle East and Africa director Jihad Azour told reporters.
But the resetting of global trade norms also represents new opportunities for the region.
“This would require … for countries in the region to seek new opportunities in terms of strengthening the economic relationships and trades with regions close to them,” Mr Azour said.
He said that some countries in the region have undertaken diversification strategies to reduce dependence on oil as a source of income. Ms Georgieva had also said most Gulf Co-operation Council countries are making progress in their diversification strategies.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
