Resilience and Growth: PwC Report on the Middle East Economy

UAE, 02 April, 2024 : The Middle East economy remains resilient despite challenges from oil cuts and geopolitical turbulence, according to the latest PwC Middle East Economy Watch.

The non-oil sector is expected to continue its robust growth, supported by strong non-oil GDP performance in 2023 and positive Purchasing Manager Indices (PMI) in Saudi Arabia and the UAE in early 2024.

Green finance is highlighted as a potential driver for economic diversification and job creation in the region, while also attracting Foreign Direct Investment (FDI).

OPEC+ members have extended production cuts into the second quarter of the year, allowing for investment in alternative energy projects. Qatar's plans to expand LNG capabilities align with the shift towards gas.

Discussions about alternative trade corridors have resurfaced due to disruptions in Red Sea trade, but progress depends on resolving current conflicts.

Green financing momentum is growing, with the issuance of green bonds and sukuk doubling to $24 billion in 2023. Oman and Qatar have introduced sustainable finance frameworks, while Saudi Arabia considers sovereign green issuance.

Richard Boxshall, Partner and Chief Economist at PwC Middle East, highlights the importance of strong non-oil sector growth, while Stephen Anderson, Partner, Middle East Strategy Leader, emphasizes the region's increasing focus on sustainability and economic diversification through green finance.

Source : www.zawya.com