Economic confidence in the Middle East has rebounded sharply in the third quarter of 2024, reflecting a positive outlook for the region's economic landscape. The Global Economic Conditions Survey (GECS) conducted by ACCA and IMA indicates a significant rise in capital expenditure and employment indices, showcasing resilience in non-oil economies, particularly in Saudi Arabia, despite the backdrop of declining oil prices [3d4f8949].
This resurgence in confidence aligns with projections from Michael Bolliger, Chief Investment Officer of Emerging Markets at UBS Global Wealth Management, who anticipates the UAE's economy will grow by over 5% in 2025. This forecast comes even as the International Monetary Fund (IMF) maintains a more conservative growth estimate of 4% for 2024, with an increase to 5.1% expected in 2025 [96bc14fb].
Kush Ahuja from ACCA highlights that optimism in the region is partly due to expected easing of US monetary policy, which could further stimulate economic growth. Jonathan Ashworth notes that GDP growth in the region is set to accelerate in 2025, reinforcing the positive sentiment among businesses and investors [3d4f8949].
However, the broader global economic landscape presents mixed results, with declines noted in Asia Pacific and Western Europe. Geopolitical risks and elevated operating costs remain significant concerns for businesses operating in the region, indicating that while confidence is high, challenges persist [3d4f8949].
In addition to these developments, the UAE recently concluded its participation in the IMF and World Bank Group Annual Meetings, where discussions on global economic stability were paramount. The UAE also hosted the UAE-Global Business Forum alongside the B20 summit in Brazil, further solidifying its role as a key player in international economic discussions [96bc14fb].
Moreover, Delta Air Lines has filed a lawsuit against CrowdStrike, citing disruptions during July flights that affected 1.3 million customers and incurred costs exceeding $500 million. This incident underscores the ongoing challenges faced by businesses in the aviation sector, which could have ripple effects on the broader economy [96bc14fb].