MUSCAT – According to the World Bank’s latest Gulf Economic Update, the Sultanate’s Real GDP is projected to expand by 3.1 percent in 2025.
“Diversification is gaining pace, with non-hydrocarbon sectors increasingly driving growth,” stated the report titled ‘The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification’.
The report focuses on three critical areas: economic diversification, macroeconomic stability, and digital transformation, while navigating global uncertainty and oil market volatility.
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Across the GCC, economic growth is gaining momentum: the UAE is set to expand by 4.8 percent, Saudi Arabia by 3.8 percent, Bahrain by 3.5 percent, Qatar by 2.8 percent, and Kuwait by 2.7 percent. The report stresses that sustained progress on national Vision strategies and disciplined fiscal policies will be crucial to preserving stability amid geopolitical and oil market volatility.
The report highlights the Gulf’s rapid adoption of advanced technologies, particularly artificial intelligence. GCC countries now enjoy more than 90 percent 5G coverage and high-speed internet across urban centres, supported by significant investments in data centres and high-performance computing. These developments are enhancing AI readiness across the region.
“The GCC’s digital leap is remarkable,” said Safaa El Tayeb El Kogali, World Bank Division Director for the Gulf Cooperation Council. She emphasised that continued investment in innovation, non-oil sectors, and workforce development will be essential for sustaining long-term prosperity, particularly as the region navigates labour and environmental challenges.
