World Bank expects 4.9% growth for UAE economy in 2026, 2027
The World Bank confirmed that the UAE's non-oil sectors continue to play a key role as a main driver of growth, with an expected growth rate of 4.9 percent in 2025.
According to the latest edition of the Gulf Economic Update (GEU) issued by the World Bank, which is based on information available as of 1st June, economic growth in the GCC countries is expected to rise in the medium term, reaching 3.2 percent in 2025 and 4.5 percent in 2026.
According to the World Bank, strong expansion in non-oil sectors is contributing to the growth achieved by Gulf economies.
According to the latest edition of the GEU, the region witnessed notable economic growth of 1.7 percent in 2024, compared to 0.3 percent in 2023.
The report noted that the non-oil sector continued to demonstrate its resilience, with a 3.7 percent increase. This growth was significantly driven by private consumption, investment, and structural reforms implemented in GCC countries.
In Bahrain, growth is expected to stabilise at 3.5 percent in 2025, while economic growth in Kuwait is expected to recover significantly and reach 2.2 percent in 2025.
Growth in the Sultanate of Oman is expected to gradually accelerate to 3 percent in 2025, compared to 1.7 percent in 2024, 3.7 percent in 2026, and 4 percent in 2027.
The report expects economic growth in Qatar to remain stable at 2.4 per cent in 2025, compared to 2.6 percent in 2024, before accelerating to an average of 6.5 percent in 2026–2027.
In the Kingdom of Saudi Arabia, the World Bank report expects economic growth to continue recovering to 2.8 percent in 2025 and reach an average of 4.6 percent in 2026–2027.
The World Bank report also highlighted the challenges associated with uncertainty surrounding global trade, noting that the risk of a global economic slowdown continues to negatively impact the region.
It recommended accelerating reforms aimed at diversifying economic activity and enhancing regional trade to mitigate these risks in GCC countries.
Safaa El Tayeb El-Kogali, Division Director for the GCC countries at the World Bank, said 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity.'
She added, ""Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability."
The report titled "Smart Spending, Stronger Outcomes: Fiscal Policy for a Thriving GCC', discusses the effectiveness of fiscal policy in ensuring macroeconomic stabilization and encouraging growth.
The topic is particularly relevant as oil price fluctuations strain budget balances in several countries across the region.
The report finds that government spending in the GCC region has effectively stabilized economies, especially during recessionary episodes.
The findings show that a 1-unit increase in fiscal spending can boost non-hydrocarbon output by 0.1-0.45 units in the region.
WAM
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
19 minutes ago
- Zawya
DANAT opens registration for Gem-A Foundation and Diploma programs
The Bahrain Institute for Pearls and Gemstones (DANAT) has officially opened registration for the internationally recognised Gem-A Gemmology Foundation Programme and the Gemmology Diploma Programme, both accredited by the Gemmological Association of Great Britain (Gem-A). As the first institution in the Middle East to be accredited by Gem-A, DANAT will offer these advanced academic tracks starting in September, sponsored by the Labour Fund (Tamkeen). Obtaining the internationally recognized Gemmology Diploma Programme certificate unlocks a wealth of career opportunities in the fast-growing global gemstone market, where demand for qualified experts continues to rise. This demand is particularly significant in light of the limited number of Bahraini professionals in the field and the increasing need to develop local expertise. As a result, programme graduates are well-equipped to pursue rewarding careers across both the local and international jewelry industries. The programme is part of DANAT's broader initiative to offer globally certified educational opportunities in gemmological sciences. Participants will also have access to the use of internationally respected professional titles, including FGA, which denotes completion of the Gemmology Diploma. The Gem-A Gemmology Foundation Programme is designed to support individuals aspiring to build or advance a career in the gemstone and jewellery sectors. It provides a rigorous introduction to the field and is particularly valuable for those looking to establish a strong foundational skillset. With over 110 years of expertise embedded in its curriculum, the programme is delivered by a team of experienced and certified instructors. The programme spans 16 weeks, with instruction held one day per week over a four-month period. Participants will engage in over 300 hours of integrated theoretical and practical training, delivered within a cutting-edge educational setting designed to foster personalised learning and skill development. Commenting on the launch, Mrs. Noora Jamsheer, CEO of DANAT, highlighted the programme's transformative potential: "This internationally accredited programme presents a valuable opportunity for individuals aspiring to build a sustainable and impactful career in the gemstone sector, whether in the fields of research, academia, laboratory analysis, or the commercial jewellery industry. By enrolling in these programmes, participants gain access to cutting-edge knowledge and hands-on expertise that empower them to launch entrepreneurial initiatives, strengthen their investment acumen in gemstones, and explore a broad spectrum of roles across the entire jewellery industry." Mrs. Jamsheer further affirmed her confidence in the role these programmes will play in addressing regional talent gaps, and emphasised their alignment with Bahrain's Vision 2030, particularly in nurturing human capital in specialised strategic fields. By cultivating a new generation of highly qualified gemmological professionals, DANAT reinforces its dedication to advancing Bahrain's status as a global hub for gemstones and jewellery expertise and ensuring long-term industry development in line with international standards. -Ends- About DANAT: Bahrain Institute for Pearls and Gemstones (DANAT) was established in 2017, under the aegis of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of the Kingdom of Bahrain. It was formed as a wholly owned subsidiary of the Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of the Kingdom. Its vision is to become the world's preferred institute for natural pearls and gemstones' third-party verification services and scientific research. As a reflection of Bahrain's ancient pearling history and the strong desire to protect this heritage, DANAT was established as the guardian of global gemological excellence. It plays a vital role in ensuring, protecting and enhancing public trust in pearls, gemstones and jewelry. DANAT is an authority on industry standards, scientific knowledge and education, and is committed to maintaining the highest standards of professional and personal ethics. For more information on DANAT, kindly contact. Marketing & Communications
Gulf Today
an hour ago
- Gulf Today
Global gas flaring surged for second year in row, wasting about $63 billion in lost energy: WB
Global gas flaring surged for a second year in a row, wasting about $63 billion in lost energy and setting back efforts to manage emissions and boost energy security and access. Flaring, the practice of burning natural gas during oil extraction, reached 151 billion cubic meters (bcm) in 2024, up 3 bcm from the previous year and the highest level in almost two decades. An estimated 389 million tonnes of CO₂ equivalent—46 million of that from unburnt methane, one of the most potent greenhouse gases—was needlessly emitted. While some countries have reduced flaring, the top nine largest-flaring countries continue to account for three-quarters of all flaring, but less than half of global oil production. Satellite data compiled and analysed in the World Bank's annual Global Gas Flaring Tracker shows that flaring intensity—the amount of gas flared per barrel of oil produced—has remained stubbornly high for the last 15 years. 'When more than a billion people still don't have access to reliable energy and numerous countries are seeking more sources of energy to meet higher demand, it's very frustrating to see this natural resource wasted,' said Demetrios Papathanasiou, World Bank Global Director for Energy and Extractives. The report highlights that countries committed to the Zero Routine Flaring by 2030 (ZRF) initiative have performed significantly better than countries that have not made the commitment. Since 2012, countries that endorsed ZRF achieved an average 12% reduction in flaring intensity, whereas those that did not saw a 25% increase. To accelerate progress, the World Bank's Global Flaring and Methane Reduction (GFMR) Partnership is supporting methane and flaring reduction projects through catalytic grants, technical assistance, policy and regulatory reform advisory services, capacity building, and institutional strengthening. 'Governments and operators must make flaring reduction a priority, or this practice will persist. The solutions exist. With effective policies we can create favourable conditions that incentivize flaring reduction projects and lead to sustainable, scalable action. We should turn this wasted gas into an engine for economic development.' said Zubin Bamji, World Bank Manager for the Global Flaring & Methane Reduction (GFMR) Partnership. WAM
Khaleej Times
2 hours ago
- Khaleej Times
UAE leads GCC project market in Q2 despite dip, outlook remains bright for 2025
The GCC project market is expected to gain renewed momentum in the second half of 2025, led by sustained activities in Saudi Arabia and the UAE. According to the latest data from MEED Projects and Kamco Invest, the UAE emerged as the region's top project market in the second quarter of the year, overtaking Saudi Arabia, despite a year-on-year drop in awarded contracts. The UAE recorded $14 billion worth of contract awards in Q2-2025, down from $26.4 billion in the same period last year — a 47 per cent decline. However, its share of the GCC project market rose to 49.2 per cent from 38.9 per cent in Q2-2024, highlighting the resilience and attractiveness of the UAE's diversified project portfolio. 'The UAE's ability to retain its lead in the region despite a sector-wide slowdown reflects its strategic investment push, policy reforms, and continued focus on economic diversification,' said Mohamed Ali Omar, associate at Kamco Invest. In contrast, Saudi Arabia posted a sharp 72.5 per cent year-on-year drop in Q2 contract awards, reaching $9.8 billion compared to $35.6 billion in Q2-2024. Overall, the GCC recorded a steep 58 per cent drop in Q2 contract awards, with total awards falling to $28.4 billion from $67.7 billion a year earlier — the lowest quarterly figure in 14 quarters. The decline was broad-based, with five of six GCC nations posting lower project awards in the second quarter. The slowdown comes after two years of record spending on mega oil and gas developments and over $1 trillion in gigaprojects. According to Junaid Ansari, head of Investment Strategy and Research at Kamco Invest, 'The slowdown is a cyclical correction after an extended period of robust activity. We expect a revival in the second half as several high-value projects enter the execution phase.' In terms of first-half 2025 performance, UAE contracts totalled $44.4 billion, down 12.1 per cent from $50.6 billion in H1-2024. The largest hit was in the construction sector, which saw a 61.6 per cent drop to $4.9 billion. Yet, the gas sector proved to be a bright spot, with $5.3 billion in awards, accounting for 37.6 per cent of the UAE's Q2 total. Among the standout deals was a $400 million three-year LNG supply agreement between Adnoc Gas and Germany's SEFE. Separately, Adnoc Gas announced a $5 billion investment in its Rich Gas Development Scheme, with the first $2.8 billion tranche awarded to UK-based Wood for the Habshan facility. Petrofac and Kent were also awarded major packages for Das Island and Asab-Bu Hasa facilities, respectively. The industrial and chemical sectors in the UAE also showed signs of growth. The industrial sector saw a 35.8 per cent year-on-year rise in Q2 awards, while the chemical sector rebounded with $150 million in new contracts after no awards in the year-ago quarter. Looking ahead, Saudi Arabia's pipeline includes mega projects such as the $80 billion CARE nuclear power reactor and a $10 billion battery energy storage system. These projects are currently in the bidding or FEED (front-end engineering design) stages and are expected to boost contract activity later in the year. As of mid-2025, the GCC's pre-execution pipeline of contracts is valued at approximately $1.73 trillion. Of this, Saudi Arabia accounts for over 50 per cent at $873.2 billion, followed by the UAE at $417.9 billion, or 24.2 per cent. Kuwait ranks fourth with $114.8 billion, or 6.6 per cent of the regional total. Segment-wise, the pipeline includes $586 billion in the design stage, $625.5 billion in the study phase, $133.9 billion in pre-qualification, $106.3 billion in bidding, $162.6 billion in bid evaluation, and $115.2 billion in FEED.
