The World Bank projects that the growth rate of Gulf economies will reach 3.4 percent in 2025, rising to 4.1 percent in 2026, compared to an expected 3.3 percent growth rate for the Middle East and North Africa (MENA) region as a whole.
In an interview with WAM on the sidelines of the World Governments Summit 2025 (WGS) in Dubai, Ousmane Dione, World Bank Vice President for the Middle East and North Africa, stated that while the region’s economic outlook remains positive, growth rates will vary between oil-producing and oil-importing countries.
Dione highlighted that the GCC countries maintain a strong economic position thanks to their diversification efforts. In contrast, other countries in the region continue to face challenges related to conflicts and instability. He noted that Gulf economies benefit from substantial investments in non-oil sectors, providing them with a competitive advantage over countries struggling with geopolitical instability.
UAE’s real GDP to rise to 4.1 percent in 2025
The World Bank had previously expected the UAE’s real GDP to grow by 3.9 percent in 2024 and expand to 4.1 percent in 2025, according to its Global Economic Prospects report. In April 2024, the World Bank raised its forecast for real GDP growth in the UAE to 3.9 percent in 2024, compared to its January forecast of 3.7 percent.
The World Bank had expected Gulf economies to strengthen to 2.8 percent in 2024 and 4.7 percent in 2025.
Growth in the Middle East and North Africa is expected to pick up to 2.8 percent in 2024 and 4.2 percent in 2025. The economies of oil exporters are projected to grow by 2.9 percent and 4.2 percent in 2024 and 2025 respectively, while those of oil importers are forecast to deliver a growth of 2.9 percent and 4 percent in 2024 and 2025, respectively.
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World Bank and the Mohamed bin Zayed Water Initiative partner
In a separate context, Dione discussed the Memorandum of Understanding signed between the World Bank and the Mohamed bin Zayed Water Initiative. The partnership aims to address critical water security challenges and foster innovative solutions to ensure sustainable water management.
It also explores potential areas of collaboration in several key areas including accelerating innovation related to water security; strengthening water sustainability and efficiency; exploring new mechanisms for water financing and funding; and deepening engagement between the public sector, private sector and international organizations to help guide and support the incubation, testing and scaling up of innovative solutions to water security challenges.
Dione noted that the MENA region accounts for approximately 55 percent of the world’s desalinated water production. However, he emphasized the importance of exploring alternative solutions such as water reuse, improved resource management and integrating artificial intelligence and modern technologies to track leaks and enhance smart irrigation systems for greater efficiency.
