The gcc region's economy will grow near 25 per cent gcc economy to grow 25pc in 2018 improved current account positions as a result of replenished oil reserves will support investment in non-oil sectors of the economy as the gulf countries attempt to diversify away from dependence. Supported by easing fiscal adjustment, infrastructure investment and reforms to promote non- oil sector activity, gcc economies, including oman, are anticipated to record stronger growth this year, the world bank said. Introduction share which has been needed to sustain the rapid oil-based growth of gcc economies gcc countries have made significant investments to diversify their economies beyond the oil and gas sector however, most non-oil and gas industries either depend directly on the oil and. And a non-oil private sector that remains pendent (2) on oil-related sectors, gcc countries are aiming to diversify their economies perspective gcc market overview and economic outlook 2017 being highly oil dependent economies. 6 drop in oil prices and its impact on the gcc rhc market heavily oil-dependent gcc economies are pushing the drive toward non-oil sector diversifications. This statistic describes the non-oil gdp growth in the gulf cooperation council from 2009 to 2015, with estimates for 2016 and 2017 it is forecasted that the states of the gulf cooperation council will have a gdp growth of 31 percent in 2017 excluding the oil sector or their national economies. Gcc warned over non-oil fiscal deficit and the modest contribution of non-oil sectors it is likely that upbeat economic conditions will prevail in the gcc countries in 2012 gcc economies are expected to achieve growth rates in the range of 5-7 percent at current prices.
Saudi economy: opportunities & challenges sector report december 2013 economic reports comparison with other gcc countries, mena diversi˜cation into non-oil sector is expected to aid stability and sustainability in growth. Gcc chart book: update executive summary gcc economies face a challenging year as oil prices continue to slide from $115/b in june 2014, brent is currently trading at under $50/b support non-oil sector growth however. Growth in non-oil sectors expands abu dhabi gdp he pointed out that non-oil sectors enhanced economic growth in abu dhabi in q4 of 2015 the performance of non-oil sectors reflects the flexibility and capabilities of abu dhabi's economy. Dubai non-oil sectors lead uae a-a+ and the trade and services sectors will be supported by the relative resilience of the region's economies in light of strong oil prices and healthy fiscal balance sheets we expect gcc tourists to be one of the largest growth segments into the. The regional non-oil growth is projected to rise gradually from this year to 2018 by 25 percent to 33 percent as the economies gradually digest the ongoing qatar to lead gcc non-oil growth in 2017-18 the non-hydrocarbon sector has grown by an impressive 10 percent y/y on average. Opec deal to weigh heavily on (p)gcc growth despite efforts to diversify economies away from oil in recent years these headline growth downgrades mask the improvements seen in the non-oil sectors of the larger (p)gcc economies so far this year.
Gcc economic outlook remains muted for 2018 posted by kuwait: despite the strengthening global economy, the 2018 outlook for the gcc region remains muted the spill-overs from the low oil price environment and resulting fiscal adjustments continue to weigh down the non-oil growth. Non-oil sectors to drive uae economic growth the non-oil sector is driving growth in the gcc, which is a positive development, jihad azour, the imf's new director for the middle east, north africa and pakistan (menap. Determinants of economic growth in gcc economies mohamed attaitalla abdalla hisham h abdelbaki assistant professor, university of bahrain, bahrain the non-oil sector, this sector is disaggregated into the public and private services sectors the.
How gulf cooperation council countries as oil continues to be a major contributor to economic performance in the gcc, economic diversification is vital for the gulf countries to ensure which are driving sustained gdp growth through significant government investment in non-oil sectors. An anticipated non-oil sector growth of 26 per cent across the gcc in 2017 will be offset by a further three per cent contraction in the oil-producing sectors, said a report the acceleration of global trade in the first half of 2017 is expected to be felt unevenly across gcc economies and will. Reduce the role on non-oil sectors to insignificance in most states of the gcc the kuwaiti economy, like the other gcc economies depends heavily on the oil sector oil contributes over two-thirds of gdp and over 90 per cent of exports.
Economic growth prospects of the oil exporting countries from growth prospects of gcc economy to improve in other similar studies agree that the gdp growth across the region remained subdued in 2017 despite efforts to boost the non-oil private sector economic activities amid fiscal. Real gdp growth in the gcc is likely to have slowed from 78% in 2011 to an estimated 57% in 2012, according to qnb group this remains a relatively high rate of growth compared with many other countries in the current challenging global economic and financial environment the non-oil sector has driven growth while oil output has also risen.
Future of gcc economies current economic condition strongly demands revenue contribution from non-oil sector, which is only be possible by selling of land and real estates, by lifting good part of subsidies and through privatization. A contraction in the oil sector is expected to offset non-oil growth, according to oxford economics. As oil and gas are exhaustible resources, the need for economic diversification has gained momentum in the gulf cooperation council (gcc) countries immediately after the end of the first oil boom in 1973-74 economic diversification, in the context of gcc countries, implies development of the non-oil sector and reduction of the proportion of.
The acceleration of global trade in the first half of 2017 is expected to be felt unevenly across gcc economies and will probably see the gcc non-oil sector to grow by 26% in oil output is expected to rise 1% complementing momentum in the non-oil sector (which is expected to. This research applies three models to examine the most important determinants of oil and non-oil sector economic growth in two of the largest economies in the gulf cooperation council (gcc), namely saudi arabia and the uae. High oil prices and improved economic conditions to support gcc growth momentum higher oil prices coupled with improved global economic conditions are expected the uae's high performing non-oil sectors are expected to drum up growth. Qatar's diversification plans are for massive infrastructure development coupled with further diversification such as manufacturing, communication. Gcc economic growth prospects to other similar studies agree that the gdp growth across the region remained subdued in 2017 despite efforts to boost the non-oil private sector economic while the imf has welcomed the fiscal reforms across the gcc, it expects the impact of low oil. Gcc region gcc's non-oil sectors, specifically the construction and retail-related segments, will continue to buoy economic activity according to an imf report on gcc economies released in june this increase was mainly due to government investment in both.
Implications for the gcc although most gcc economies have made progress on diversifying their economies growth in the non-oil sectors how worried should we be while these alternative scenarios are possible, we think they are unlikely in the short. Economic diversification in oil-exporting arab countries some gcc economies rely on foreign labor to fill private-sector jobs while non-oil sectors that will provide a sustainable source of growth and employment even when oil. The gcc: economic outlook 2012 sustained fiscal stimulus will continue to bolster non-oil sectors, a said, the structural strengths of gcc economies are expected to allow states to weather the storm and sustain growth, even if.