Synopsis
A new report reveals that the Gulf Cooperation Council (GCC) economies will experience significant growth in 2025, with GDP growth expected to double. The First Abu Dhabi Bank highlights the region's resilience and strategic investments driving this transformation.Key Takeaways
- GCC GDP growth predicted to double to 4.2% in 2025.
- UAE's growth rate expected to rise from 4.5% to 5.6%.
- Equity markets to deliver 12%-13% returns.
- Shift towards green energy investment projected.
- AI-driven transformation reshaping industries.
Abu Dhabi, Feb 21 (NationPress) The economies of the Gulf Cooperation Council (GCC) are anticipated to surpass global growth rates in 2025, with the region's gross domestic product (GDP) growth projected to double, according to a report published on Friday by the First Abu Dhabi Bank (FAB).
In its 2025 Global Investment Outlook report, FAB, the largest financial institution in the United Arab Emirates (UAE), predicts that GCC economies will outpace global expansion, with GDP growth expected to increase from 2.1 percent in 2024 to 4.2 percent in 2025. Meanwhile, the UAE's growth rate is forecasted to rise from 4.5 percent to 5.6 percent.
According to the report, titled "Shaping the Future of Investments: Artificial Intelligence and the Interest Rate Environment," the economic resilience of the GCC will be bolstered by strategic investments, diversification, and substantial growth in the non-oil sector.
The GCC equity markets are projected to yield returns of 12 percent to 13 percent in 2025, benefiting from financial stability and recovery in critical sectors. The report further mentions that the UAE's Vision 2031 and Saudi Arabia's Vision 2030 are significant catalysts for this transformation, promoting growth in technology, startups, and financial markets.
The GCC region is viewed as a "beacon of resilience and opportunity" amidst global economic instability, as stated by Michel Longhini, group head of Global Private Banking at FAB. He emphasized that the AI-driven transformation is already transforming industries and generating substantial investment opportunities, differentiating this trend from prior technology booms.
The report also noted the Middle East's transition from a major oil exporter to a global green energy hub, with investments in renewables projected to surge from 1.2 trillion US dollars in 2024 to 2.4 trillion dollars by 2030, as reported by the Xinhua news agency. Furthermore, energy investments in the region are expected to reach 175 billion dollars in 2024, with clean energy making up 15 percent.
Established in 1981, the GCC is a regional, intergovernmental political and economic union consisting of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
