RIYADH: Saudi Arabia’s economy is projected to grow by 1.6% in 2023 and 4.9% in 2025, with inflation staying low at 2.1% in 2024 and 2.3% in 2025. This growth is boosted by structural reforms and rising female participation which rose to 34% in 2023 from 22% in 2016, Vision 2030. The economy has diversified and modernised, creating more opportunities, especially for women.
The report states that Saudi Arabia’s growth outlook surpasses the earlier forecast given by the IMF. S&P Global predicts a 5.3% GDP growth by 2025, due to the kingdom’s strategy to diversify its economy and not be dependent on oil revenue.
Economic growth is expected to differ across the GCC countries with an overall growth at 1.9% in 2024 and 4.2% in 2025. Qatar, UAE and Bahrain displayed positive growth prospects, meanwhile, countries like Kuwait and Oman have slower recoveries.
Growth in the wider Middle East and North Africa (MENA) region will continue remaining subdued due to the ongoing conflicts happening in Lebanon and Syria. World Bank emphasises that closing the gender employment gap could significantly increase the region’s per capita income.
The report suggests the importance of technological development, better balance between private and public sector, and an active international trade for the development of the MENA countries. The region’s ability to drive innovation and productivity is relying on adopting digitalization and improving data transparency.
