Dubai: The outlook for most of the Gulf Arab economies has dimmed for this year and next as oil prices have remained relatively low, according to a Reuters poll published on Wednesday that showed economists cutting their forecasts.
This year’s growth forecast for the United Arab Emirates, which is less reliant on oil because of Dubai’s diverse economy, has been cut to 3.4 per cent from 3.8 per cent, and next year’s to 3.7 per cent from 3.9 per cent.
Qatar is expected to be by far the best-performing of the six Gulf Cooperation Council economies, as the world’s top natural gas exporter steps up a vast infrastructure building programme. Qatari GDP is projected to grow 6.7 per cent this year and 6.4 per cent next year.
Heavy state spending and strong private consumption are cushioning the impact of a plunge in oil export revenues. Nevertheless, some construction and economic development projects are being suspended, cooling economic growth.
Saudi Arabia’s gross domestic product is now projected to expand 2.6 per cent in 2015, according to the median forecast in the poll of 18 analysts, instead of the 3.2 per cent foreseen by the previous poll in January. Last year, GDP grew 3.6 per cent. In 2016, Saudi GDP is expected to grow 3.0 per cent instead of the previous forecast of 3.2 per cent.
