GCC to grow at double the rate of global economy despite slowdown in 2023

The GCC economy is expected to grow at more than twice the pace of the global economy next year despite the regional economy cooling down after two exceptionally strong years of growth, say economists.

According to Oxford Economics, the Gulf region will remain an investor hotspot in 2023 with demand for real estate remaining healthy.

“The GCC economies are ending 2022 on a high note, as they wrap up the strongest year in terms of GDP growth in more than a decade. We anticipate growth will shift into a lower gear in 2023, albeit remaining firmly positive, in contrast to many advanced and emerging markets,” said Maya Senussi, senior economist at Oxford Economics.

The think-tank estimates regional GDP to rise by over seven per cent this year and 2.9 per cent next year. This comes amidst many advanced and emerging economies slipping into mild recessions.

“GDP in the region will grow at more than twice the pace we forecast for the global economy… This (GCC growth) will, however, still be above the average pace in the five years preceding the pandemic,” she said.

Oil markets a key driver

Oxford Economics projected that the non-oil sector will again lead the rebound in the GCC region next year.

“We are particularly upbeat on Saudi Arabia, where the National Investment Strategy underpins the growth and investment outlook and indicators of consumer spending point to an ongoing strong recovery. Meanwhile, the UAE's policies in support of expansion in key sectors, embedded in the ‘we the UAE 2031’ vision, will drive growth,” said Senussi.

— waheedabbas@khaleejtimes.com