The Middle East Economy

Higher energy prices and strong increases in gas output helped return Oman’s economy to growth in 2018, with expansion forecast to accelerate in the coming year.

Kuwait’s economy returned to growth in 2018, with higher input from the non-oil sector and increased government investment combining to drive expansion, while reforms to the capital markets and banking sectors should attract further inflows moving forward.

Strong gains by the non-oil and gas sector underpinned solid growth in Qatar’s economy in 2018, laying the foundations for further expansion as the country works to mitigate the fallout from the regional blockade and step up efforts to diversify its economy.

Strong non-oil sector and foreign direct investment (FDI) growth combined to deliver Bahrain momentum through 2018, with the country’s biggest hydrocarbons discovery in decades expected to strengthen its fiscal position in the years ahead.

Stronger energy revenue for much of the year and liberalisation reforms have helped Saudi Arabia’s economy rebound in 2018, though falling oil prices late in the year and the potential fallout over security issues could affect growth moving forward.

Higher energy returns are expected to have led Abu Dhabi’s return to growth in 2018, with expectations of further expansion in 2019 as the government rolls out an extensive stimulus programme