Oil & Gas

The International Monetary Fund (IMF) has revised its economic growth forecast for the Middle East and North Africa (MENA) region, cutting it from 4% to 2.6% for 2025. This downgrade comes amid mounting global challenges including ongoing trade tensions, weakening global demand, and declining oil prices. The IMF noted that these global headwinds are slowing consumption, investment, and exports across the region, particularly in oil-dependent economies.

Countries in the Gulf Cooperation Council (GCC) such as Saudi Arabia and the UAE are expected to maintain some resilience, with projected growth of around 3%, down from the earlier forecast of 4.2%. This is largely due to their continued economic diversification efforts, such as Saudi Arabia’s Vision 2030 and the UAE’s investments in non-oil sectors. However, non-Gulf oil exporters and oil-importing nations are facing steeper slowdowns, with growth expected to dip below previous estimates due to inflationary pressures and delayed structural reforms.

The IMF emphasized the urgent need for MENA governments to accelerate economic diversification, enhance trade, and implement structural reforms to improve productivity and reduce reliance on hydrocarbons. Without these measures, the region risks prolonged vulnerability to external shocks and limited progress toward long-term, sustainable growth. The report serves as a call to action for leaders in the region to build more resilient and inclusive economies in an increasingly uncertain global environment.