The World Bank report attributes the economic rebound in the GCC to the region’s broadly successful vaccination rollout, the easing of pandemic restrictions, and developments in the hydrocarbon market.
Saudi Arabia‘s economy is expected to witness a seven per cent acceleration in 2022, driven by stronger oil output following OPEC+ production cuts and continued growth in non-oil sectors, according to the latest World Bank report.
The World Bank’s Gulf Economic Update (GEU) “Achieving Climate Change Pledges,” report highlights that growth in the Kingdom’s economy will also be supported by stronger consumption, increased tourism, and higher domestic capital spending.
The projected rate of growth in Saudi Arabia outpaces the economies of other Gulf Cooperation Council (GCC) countries, which are projected to expand by 5.9 per cent overall in 2022.
“As GCC countries commit to the net-zero objectives laid out in their pledges and strategies, it is important to restructure energy and water subsidies and address the GCC’s challenge of moving to a more sustainable growth model less hydrocarbon dependent and managing the transition to a global low-carbon economic environment that risk to see their oil revenues reduced in the next few decades,” Issam Abousleiman, the World Bank’s Regional Director for the GCC, said.
