Economies of Arab countries expected to grow 2.8% by the end of 2024

Recent estimates issued by the Arab Monetary Fund, reviewed by Mal, revealed that the growth rate of the economies of Arab countries is expected to improve to record about 2.8% by the end of 2024, compared to 0.3% in 2023.

Estimates issued by the Fund on Thursday confirmed that the Saudi economy will lead the growth rates among the region’s economies this year at a rate of 4.4%, followed by the economy of the UAE at a rate of 3.9%, followed by the economy of the Kingdom of Bahrain at a rate of 3.5%, followed by the economy of the State of Kuwait at a rate of 2.7%, and the economy of the Sultanate of Oman at a rate of 2.3%. It is likely that the economy of the State of Qatar will reach 1.8% in terms of economic growth this year in the Arab world.

The 20th issue of the Arab Economic Outlook report issued by the Fund explained that growth in the economies of the countries of the region in the current year will come as a result of a number of factors, foremost of which is the stability of oil and gas prices, which enhances confidence and supports local demand in oil and gas producing countries, and the decline in the prices of basic commodities, including products. agricultural sector in a way that reduces external demand from importing countries, stressing that this will be offset by continued tightening of monetary policies, and the accompanying pressure on economic activities.

According to Arab Monetary Fund estimates, for the next year 2025, the pace of economic growth in Arab countries is expected to improve to about 4.5%, supported by a decline in the impact of unrest in the region and its effects on the tourism, investment and trade sectors, in addition to a decline in interest rates and tightening control over inflation.

Estimates indicated that this would support economic growth in the region by reaching high levels of oil prices and the relative stability of commodity prices.

The Fund expected that the group of Arab oil-exporting countries, which includes Saudi Arabia, the Emirates, Qatar, Kuwait, the Sultanate of Oman, and Bahrain, would witness a growth rate of 3.7% in 2024, and that the group’s economic growth rate would improve in 2025 to reach 5.1%.

According to Arab Monetary Fund estimates, which were based on data from the International Monetary Fund, the World Bank, and the United Nations, the Saudi economy achieved growth of 7.5% by the end of 2022, driven by a rise in oil production and a growth of the non-oil sector by 5.6% due to private consumption and investment in major projects. The main growth engines included sectors Wholesale, retail, construction and transportation.