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.

Prospects start to brighten for GCC contractors

Outlook improving for contractors in the GCC, though challenges remain Q&A with Arun Mathur, Senior vice-president and head of contracting finance, Mashreq Bank Q: What state is the GCC construction market in ...

Gulf Projects Index continues to decline

Six of eight tracked regional markets note downward movement amid tightened cash flow Data shows value of projects planned or under way ($bn) Six of eight markets tracked by the Gulf Projects ...

EXCLUSIVE: GCC contract awards rebound in first half of 2017

Total value of awards improves from low in the second half of 2016 GCC contract awards rebounded during the first half of this year from the four-year low recorded in the ...

Planning for a year of transition in construction

The region’s construction sector is undergoing great change, as contractors shift their focus to exploring new sectors and geographies After five years of being propped up by projects in Dubai, the ...

A SWOT analysis of UAE construction

What are the strengths, weaknesses, opportunities and threats facing the UAE construction sector as it faces a post-Covid reboot? Click here to download the 'UAE Construction SWOT' infographic Construction companies in the ...

UAE moves to accelerate major infrastructure schemes

Project support is part of $4.4bn economic stimulus package approved by federal cabinet The UAE cabinet approved a AED16bn ($4.4bn) economic stimulus package on 22 March that includes measures to accelerate ...

Mecca mobility strategy award could be game-changer

Imminent award of Mecca mobility strategy contract could be an important development for many stakeholders The award of the Mecca mobility strategy contract, which includes the feasibility study for the first ...

UAE economy looks to recapture its appeal

Persisting weakness in the non-oil sectors makes the case for further stimulus efforts in the near term The latest economic and fiscal data from the UAE caters to those inclined towards ...

Dubai construction stalls as contract awards slow

Tough times lie ahead for the market as projects are put on hold and developers are forced to lay off staff Dubai has propped up the UAE’s construction market in recent ...

Joint venture wins Dubai tunnel construction deal

Stormwater network will serve Expo and Dubai South developments in Jebel Ali area Dubai Municipality has awarded the joint venture of Austria’s Porr and Belgium’s Besix has been awarded the contract ...