UAE economy is the fastest growing in the region at 4.5%

A Reuters poll forecasts that the UAE's economy will grow by 4.5% this year, down from the 5.0% forecast in January, but it will still be the fastest in the region.

The Reuters poll, conducted from April 9 to 24, surveyed 19 economists, forecast that the Saudi economy will grow by 3.9% this year, a slight downward revision from the 4% forecast in the January poll.

Across the rest of the Gulf Cooperation Council (GCC), growth forecasts for Kuwait, Qatar, Oman, and Bahrain this year reached 2.5%, 2.7%, 2.8%, and 2.8%, respectively.

The report indicated that most GCC economies will grow at a slower pace this year than previously forecast, amid increasing risks of a global growth slowdown despite rising oil production.

The region's economies are unlikely to be significantly affected by volatile US tariff policies. However, the global economic slowdown and its impact on demand for oil, the region's main source of revenue, could cast a shadow over growth.

Brent crude prices hit their lowest levels since the pandemic this month and are expected to remain low this year due to weak demand and increased supply.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, within the OPEC+ group, are expected to increase oil production next month and may continue doing so until June.

The International Monetary Fund recently lowered its growth forecast for Saudi Arabia, the region's largest economy, citing the difficulties facing the region as a whole.

Inflation, which has remained stable across the region, is expected to range between 1.2% and 2.5% this year, with Oman having the lowest rate and Kuwait having the highest.

Inflation is expected to average 2.0% in Saudi Arabia and the United Arab Emirates, and 1.5% in Qatar and Bahrain.

Reuters