The Middle East Economy

The need for economic diversification was underscored this past year as the Kuwaiti economy came under pressure from lower oil revenues.

Falling oil revenues and an expanding budget deficit were the hallmarks of Saudi Arabia’s economic activity in 2015, as heavy investment in development projects widened the Kingdom’s spending gap. 

Steady reform and targeted growth bolstered investor confidence in Jordan’s economy in 2015, as weaker oil prices helped to support a stronger balance of trade and maintain low levels of inflation. 

Falling energy prices weighed on Qatar’s economic performance in 2015, with lower demand across key export markets and tougher competition producing a sharp drop in government revenues. However, double-digit growth for non-hydrocarbons helped foster economic momentum, expected to continue into 2016.

The return to single-party government and a commitment to fast track economic reforms have boosted investor confidence in Turkey, though rising inflation and low growth rates could hamper the prospect of renewed fiscal and political stability.