A poll showed that the economic growth in the Gulf region will increase further during the current and next two years, with the support of the non-Saudi oil sector.
A Reuters poll that included the opinions of 26 economic experts, and conducted from January 7 to January 21 this year, suggested that the Saudi economy would grow by 2 percent in 2020 and 2.2 in 2021. A similar survey three months ago had shown expectations Same for 2020 and 2021, but he expected growth of 0.7 percent in 2019.
The Oxford Economics Foundation said in a research note that efforts to diversify the economy of Saudi Arabia "are showing signs of having an impact".
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said that increasing the strength of the non-oil sector would help Saudi Arabia.
“The real growth of the GDP in Saudi Arabia should benefit from stronger non-oil activity with the investment program achieving momentum. The slowdown in the oil sector should become moderate in 2020 after a sharp cut in production in 2019. ”
According to the survey, economic growth in the region will be supported by the Saudi investment program and Expo 2020 in Dubai, but the region will continue to be affected by oil production cuts.
The average growth forecast for Oman, a relatively small crude product in the Gulf region, has declined dramatically. Analysts expect 1 percent growth in 2019, 1.7 percent in 2020 and 2.3 percent in 2021. Three months ago, forecasts were for Oman's GDP to grow by 1.3 percent in 2019, 3.2 percent in 2020 and 3 percent In 2021.
Maya Senussi, an economist for the Middle East at Oxford Economics, said that the increase in oil production cuts agreed by OPEC and its allies in December, and the expectations of non-oil activity remained weak cast its weight on the outlook for Oman.
Analysts had expected a growth of 1.7 percent in 2019 for the UAE, down from 2.2 percent in the survey conducted three months ago. The forecast has not changed for 2020 and 2021.
The governments of Dubai and Abu Dhabi, the two main emirates of the country, have boosted spending to stimulate their economies.
Dubai, which will host Expo 2020 this year, announced a record budget of about $ 18 billion this year, an increase of 17 percent year on year, while Abu Dhabi announced in 2018 an economic package worth $ 13.6 billion over three years.
As for Kuwait, which said last week, it expects a budget deficit of 9.2 billion dinars ($ 30.3 billion) in the fiscal year that begins on April 1, analysts expected economic growth of 0.5 percent in 2019, a decline from Expectations of a growth of 1 percent three months ago.
Kuwaiti GDP growth was revised down to 1.9 percent in 2020 from 2.2 percent three months ago. But growth projections in 2021 were raised to 2.6 percent from 2.3 percent.
Qatar's GDP growth forecasts were revised down to 0.9 percent in 2019 from 1 percent three months ago.