GCC Economies Set to Double Growth in 2025: Report by First Abu Dhabi Bank
The economies of the Gulf Cooperation Council (GCC) countries are expected to see a significant boost in 2025, with their gross domestic product (GDP) growth projected to double, according to a report by First Abu Dhabi Bank (FAB), released on Friday.
The economies of the Gulf Cooperation Council (GCC) countries are expected to see a significant boost in 2025, with their gross domestic product (GDP) growth projected to double, according to a report by First Abu Dhabi Bank (FAB), released on Friday. The FAB’s 2025 Global Investment Outlook forecasted that the GCC region’s GDP will grow by 4.2% in 2025, a major increase from the 2.1% growth expected in 2024.
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UAE and Saudi Arabia Set to Lead in Economic Growth
The United Arab Emirates (UAE) is expected to lead the region’s economic expansion, with its growth rate anticipated to rise from 4.5% in 2024 to 5.6% in 2025. Meanwhile, Saudi Arabia and other GCC countries will benefit from diversification efforts and strategic investments in non-oil sectors, bolstering the region’s resilience amid a challenging global economy.
Key Drivers Behind GCC Growth: Strategic Investments and Vision Plans
The growth forecast is largely driven by the ongoing transformation under national Vision plans. UAE’s Vision 2031 and Saudi Arabia’s Vision 2030 are at the heart of this growth, driving advancements in sectors such as technology, startups, and financial markets. This shift towards diversification and innovation is expected to deliver impressive returns in GCC equity markets, with an estimated 12% to 13% growth in 2025.
AI-Driven Transformation and Green Energy Investment Opportunities
Michel Longhini, the Group Head of Global Private Banking at FAB, emphasized that the GCC region continues to be a “beacon of resilience and opportunity,” especially amidst global economic uncertainty. The role of artificial intelligence (AI) in reshaping industries has become a focal point of investment opportunities in the region.
Furthermore, the Middle East is witnessing a shift from being a major oil exporter to becoming a global hub for green energy. Investment in renewable energy is projected to rise sharply, with an expected $2.4 trillion in investments by 2030, up from $1.2 trillion in 2024. Clean energy investments are set to comprise 15% of the region’s energy investments in 2024, signaling a shift toward sustainability in the energy sector.
GCC’s Resilience Amid Global Economic Uncertainty
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Despite the turbulence in the global economy, the GCC remains a stronghold of growth and opportunity, supported by continued strategic investments, technology-driven transformation, and an increasingly green energy focus. The report highlights that the region is well-positioned to thrive in the coming years, offering promising returns for investors looking to capitalize on these developments.
As the GCC economies continue to diversify and expand, they offer investors a chance to engage with a region that is at the forefront of economic transformation. The region’s combination of financial stability, forward-thinking policy frameworks, and sustainable development is paving the way for robust growth and investment in the years to come.
