"The World Bank has revised its economic growth forecasts for the MENA region."
The World Bank has lowered expectations for 2026 for the Middle East, North Africa, Afghanistan, and Pakistan due to persistent global and regional risks.
According to updated data, in 2025, the growth of the region's aggregate GDP will be 2.8%, which is slightly higher than the April forecast (2.6%). This result is due to the activity of the GCC countries, where there is a reduction in oil production with a simultaneous growth of non-oil sectors.
However, for developing oil-exporting countries, the forecast remains unfavorable. Conflicts, falling production volumes, and reduced investment are slowing economic growth. The situation is particularly acute in Iran, where the economy is projected to shrink by 1.7% in 2025 and by 2.8% in 2026.
Key risks: political instability, geopolitical conflicts, and the tightening of global financial policy.
Experts note that the Gulf countries, including the UAE and Saudi Arabia, continue to rely on economic diversification, investment in technology, tourism, and "green" energy, which helps to mitigate the effect of declining oil revenues.