The Institute of Chartered Accountants in England and Wales (ICAEW) has released a report for the GCC region and has forecasted robust growth for key countries in the Middle East, with growth coming from both oil and non-oil sectors.
ICAEW expects fiscal deficits for Saudi Arabia and other GCC countries
While the report predicts growth for the GCC region as a whole, the ICAEW has stated it expects fiscal deficits for Saudi Arabia, Bahrain, Kuwait, and Oman.
“The GCC economies are showing that diversification is more than policy. It is a measurable driver of resilience,” said ICAEW Middle East head Hanadi Khalife.
“With non-oil sectors powering growth momentum in Saudi Arabia and accounting for the majority of GDP in the UAE, alongside fiscal reforms in Kuwait, the region is successfully turning global challenges into opportunities for transformation,” he also said
Compared to lower expectations of global GDP growth of 2.7% for 2025 and 2.6% for 2026 due to a cautious perception of global economic performance, growth forecasts for GCC are higher, with predicted GDP growth of 4.1% for 2025 and 4.6% for 2026.
GCC countries currently face an import fee of 10% for all goods sold to the U.S., but tariff-created vulnerability is deemed low due to little trade with the U.S., and any relevant trade categories, including energy exports being kept exempt from the tariffs.