Estimates of GCC growth prospects suggest that the projected decline in oil prices for the years 2019-2020, coupled with reduced production, will cause a delay in the fiscal balance, resulting additional pressure on non-oil sectors to drive revenue growth and real GDP growth.
According to the report, private sector stimulus programs and investment in infrastructure will contribute to supporting non-oil growth significantly during the forecast period. In addition, many reforms have been introduced to stimulate the business environment and provide incentives to attract long-term foreign investments, especially in the UAE, which have reduced fees in many sectors including tourism and real estate (Dubai) and allowed licenses for companies operating in free trade zones (Abu Dhabi).
The report also predicted that the pace of non-oil growth of the GCC will improve from 2.9% in 2018, to 3.3% in 2019 and 3.5% in 2020.
