The Middle East Economy

A range of developments contributed to making 2019 an overall positive year for Saudi Arabia.

Subdued domestic and external demand combined with regional tensions created a challenging economic environment for Dubai in 2019.

A downturn in oil revenue on the back of production cuts by the Organisation of the Petroleum Exporting Countries contributed to a difficult year for Oman in 2019, as the government continued with efforts to balance the budget and diversify the economy.

Despite ongoing fiscal challenges, Bahrain’s economy proved resilient throughout 2019, with the World Bank projecting growth of 1.8%. While expansion of the non-oil economy is expected to slow from 2.5% to 2.2%, the oil sector is due to move back into the black (0.2%), reversing the 1.2% contraction recorded the previous year.

Increased public investment and a recovery in demand across the region helped Sharjah post more robust growth in 2019, as the emirate continues to expand its free zones and industrial projects.

Abu Dhabi’s economy expanded steadily in 2019, thanks in part to oil sector growth and the ongoing rollout of publicly backed economic stimulus plans.