IMF says economic growth in GCC to remain subdued

27 December, 2017 | By COLIN FOREMAN

Medium-term growth prospects in the GCC remain subdued amid relatively low oil prices and geopolitical risks, according to a report by the Washington-based IMF issued on 14 December.

The IMF says non-oil GDP growth in the GCC will increase to 2.6 per cent this year, from 1.8 per cent last year, while lower oil output means overall real GDP growth is projected to slow to 0.5 per cent in 2017, from 2.2 per cent in 2016.

Non-oil growth has accelerated as the pace of fiscal consolidation in the region, which was mainly focused on reducing expenditure, slows.

The IMF says countries in the GCC should continue to rationalise recurrent expenditures, conduct further energy price reforms, increase non-oil revenues, and introduce measures to improve the efficiency of capital spending.

Private sector investment will also need to be encouraged to offset lower government spending and maintain growth. The IMF says this requires stepped-up reforms to improve the business climate and reduce the role of the public sector in the economy through privatisation and public-private partnerships.

Globally, the IMF says economic activity is gaining momentum. Global growth is forecast at 3.6 per cent this year, and 3.7 per cent in 2018, compared with 3.2 per cent in 2016. It adds that the more positive global growth environment should support stronger oil demand.

China ramps up investment in Middle East power

China investment makes up an increasing proportion of the financial support for the largest projects in the region’s power sector The financial close of the $4.4bn fourth phase of Dubai’s Mohammed ...

Construction 4.0

The UAE's ambitious Vision 2021 strategy provides an opportunity for the construction industry to harness the latest digital and technological innovations that are transforming project delivery around the world. These innovations ...

Decarbonisation is the next phase for Mena construction

The region’s construction and wider projects market must start incorporating sustainable practices in the planning and delivery of projects As countries around the world commit to reducing their carbon emissions, the ...

New ways of working for UAE construction

The UAE construction sector must reassess the way it delivers projects in order to play a more active role in the nation's journey to net zero by 2050 Construction stakeholders in ...

UAE construction faces up to the digital storm

Digital transformation is happening everywhere and is being driven by many factors, including changing economic necessities, societal shifts, and new technologies. But while the Big Data/digital revolution has already transformed many ...

Transforming Construction: Lessons from Oil & Gas

IMPARTING KNOWLEDGE: The region’s construction industry is in a state of revival and can learn valuable insights from its oil and gas counterpart With nearly $1.6tn-worth of major building and infrastructure ...

Gulf Projects Index plunges amid Covid-19

Global pandemic heralds project market declines across the board in the Gulf, as regional spending cuts and falling business confidence hit hard Data shows value of projects planned or under way ...

UAE central bank extends stimulus package

The AED100bn ($27bn) Targeted Economic Support Scheme (Tess) was launched in March The UAE Central Bank has extended its economic stimulus package until the end of the first half of next ...

Work at Dubai Expo 2020 site keeps contractors busy

Construction work at the Expo 2020 site at Dubai South is steadily progressing The Expo 2020 site’s location on the outskirts of the city means most people living in Dubai do ...

Project spending no longer turbocharges economy

Cost pressures diminish economic boost from project spending The UAE’s construction sector should be brimming with optimism as tendering starts for the construction of the next phase of Etihad Rail and ...