Oman's Economic Growth and GCC Outlook: World Bank's Positive Projections
Key Ideas
- Oman's economic outlook is favorable with a projected real GDP growth of 1.5% in 2024, driven by increased gas production and diversification efforts.
- The GCC region is expected to experience economic growth, with projections indicating a rebound to 2.8% and 4.7% in 2024 and 2025, respectively.
- The World Bank emphasizes the importance of education quality in fostering long-term economic growth in GCC countries and highlights the need for further improvement in learning outcomes.
The World Bank's Spring 2024 Gulf Economic Update report highlights Oman's positive economic outlook with a projected real GDP growth of 1.5% in 2024, driven by increased gas production and diversification efforts. Efforts to enhance the business environment, support SMEs, and invest in renewable energy and green hydrogen are noted as key factors contributing to Oman's growth. The report also forecasts economic growth in the GCC region, with Saudi Arabia, the UAE, Qatar, Kuwait, and Bahrain all expected to experience varying levels of growth. Despite efforts towards diversification, hydrocarbon revenues remain crucial for the GCC's fiscal and external balances. The World Bank stresses the significance of education quality in fostering long-term economic growth in the region, emphasizing the need for GCC countries to improve learning outcomes to compete globally.