GCC countries back to growth after Covid contraction

After several months of Economic downturn, GCC (Gulf Cooperation Council) is expected to reverse the trend with a 2.2% growth in 2021, versus a 4.8% GDP contraction in 2020. This recovery is mainly driven by the improved global economy and the increase in global oil demand and prices.

Saudi Arabia, mid-term growth is expected to reach 3%, driven by oil demand as well as its internal economy transformation. United Arab Emirates will benefit from government expenditure, and the Expo 2020 effect to reach a 2.5% growth on the same period. Qatar ‘s forecasts are the strongest with an estimated 4.5% growth by 2023, thanks to the liquefied natural gas demand from ASEAN markets as well as soccer World Cup effect.

Opportunities for investment in the region are tremendous. The largest economy of the Middle East, Saudi Arabia, and its living standards increase, will play a key role in accelerating the economies of its neighbors by increasing consumer markets. GCC as a single market could potentially become the world’s sixth largest market in the 2030 decade.