The Middle East Economy

Stability and consolidation were Qatar’s watchwords in 2016, as the government continued to make long-term investments in national infrastructure at a time of restricted economic growth in the region.

Weaker energy prices and an ambitious reform programme aimed at increasing private sector participation in the economy were key themes of 2016 as Saudi Arabia accelerated efforts to diversify its economy.

The government of Kuwait is continuing its drive to encourage private sector investments, having recently announced plans to invite proposals on several large-scale, public-private partnership (PPP) projects.

Year-end forecasts of increased revenue and fiscal deficit relief have brightened Sharjah’s near- to medium-term outlook, with the emirate’s authorities working to promote non-hydrocarbons sectors as attractive investment propositions on the back of slower growth in 2015.

In the face of regional instability, high levels of debt and the cost of hosting hundreds of thousands of refugees, Jordan’s economy exhibited resilience this year, with prospects for even stronger growth in 2017 on the back of international support and wide-reaching reforms.

Buoyed by the solid performance of the non-oil sector, Bahrain’s economy has maintained steady growth throughout 2016, though future development could be impacted by rising public debt.