Arab economies are expected to record growth of around 3.7% in the coming period, supported by higher oil production and a sustained recovery in non-oil sectors, according to Kristalina Georgieva, Managing Director of the International Monetary Fund.
Speaking at the Annual Arab Fiscal Forum, Georgieva said the outlook reflects improving regional economic performance despite ongoing global challenges. She noted that global growth is projected at about 3.2%, exceeding earlier expectations, while global inflation is continuing to ease, falling to roughly 3.8% in 2026 and 3.4% by 2027, helped by lower energy prices and more efficient supply chains.
Georgieva highlighted several positive indicators across the Arab world, including the return of two Arab countries to international debt markets after more than three years, signalling stronger public finances and renewed investor confidence. She also said remittance flows to Arab countries grew by more than 5%, supported by the recovery of tourism and improving labour markets globally.
Pointing to the Gulf, Georgieva cited the United Arab Emirates as an example of successful economic diversification, noting that non-oil activities now account for about 80% of GDP, reflecting long-term policy reforms.
The Arab Fiscal Forum is focusing on fiscal policy reform, the use of government technology and artificial intelligence to improve public spending efficiency, financing sustainable development, and strengthening public-private partnerships across the region.
