The IMF projects the Middle East and Central Asia region will contract 0.3 percent in 2026, reflecting its exposure to the conflict. Saudi Arabia is expected to suffer a 3.3 percent contraction, pointing to a rare recession for the kingdom, whose economy has long been supported by energy exports.

Social development and pensions take the largest share at 38.4 percent, followed by government affairs at 32.3 percent, as the federal plan targets fiscal sustainability.

The forecast of 0.3% contraction marks a steep reversal from the IMF’s projection of 1.9% growth made six months earlier in its April World Economic Outlook report.

Non-oil activities accounted for 79.2% of the economy, led by trade, finance, construction and manufacturing, despite a second-quarter contraction amid regional disruptions affecting tourism, transport and trade.

The revised forecast represents an increase of about three percentage points and comes as the bank expects the Saudi economy to absorb the impact of the conflict and disruption to regional trade and energy flows.

Fitch Ratings expects Saudi Arabia’s fiscal deficits to remain wider than previously budgeted, with higher spending and conflict risks weighing on the outlook through 2029.

Mubadala led regional sovereign investors with $26.2 billion in investments, followed by the Public Investment Fund (PIF), Abu Dhabi Investment Authority (ADIA), L’IMAD and Qatar Investment Authority (QIA).

The Conference Board’s gauge of confidence decreased 6.7 points to 81.9 after a downward revision to the prior month, data released Tuesday showed.

The United Nations Conference on Trade and Development (UNCTAD) 92% of its economic establishments damaged or destroyed and more than 90% of the working-age population without employment.

World Economic Forum survey finds improving global outlook, but tighter fiscal space, geopolitical risks, AI investment uncertainty and living costs cloud growth in coming months.

Saudi Arabia's Ministry of Human Resources and Social Development (HRSD), in partnership with the Ministry of Municipalities and Housing (MOMAH), has announced a decision to raise the Saudization rate for project management professions in the local private sector to 70 percent, effective Feb. 14, 2027. The decision applies to all...

The the UAE Economic Graph Report 2026 by LinkedIn and the Ministry of Foreign Trade says real estate led hiring growth, while the UAE ranked highly for FinTech skills, AI talent attraction and net migration.

Real GDP rose to $132.0 billion at constant prices in the January-March period, while non-oil GDP expanded 4.8 percent, increasing its share of the economy to 79.4 percent from 78.0 percent a year earlier.

Dubai, UAE -- Kuwait's consumer price index (CPI), a key measure of inflation, increased by 2.19% year-on-year at the end of June, driven by higher prices across several main expenditure groups, official data showed on Monday. The Central Statistical Bureau (CSB) said the annual inflation rate was mainly attributed to...

The milestone reflected the success of the UAE's strategy to build a diversified, competitive and open economy while strengthening its position as a global trade, investment and logistics hub, Minister of Foreign Trade Thani Al Zeyoudi said in a statement.

State-backed investors are expanding beyond traditional investment models, increasing exposure to alternatives, AI and direct deals while balancing returns with national development goals.

The Kingdom ranked 13th out of 70 economies assessed in the annual report, improving from 17th place a year earlier and placing third among G20 countries, behind the United States and China.

Dubai, UAE -- Saudi Arabia’s annual inflation rate rose to 1.8% in May 2026, up from April, as higher housing, transport and hospitality costs pushed consumer prices higher, according to data released by the General Authority for Statistics (GASTAT). The cost-of-living index increased to 105.3 points in May from 103.5...

Most economies saw forecasts downgraded as rising energy costs, inflation and borrowing expenses create fresh challenges for growth and development worldwide.

According to the latest Vision 2030 annual report, the real non-oil GDP reached $892 billion against a target of $904 billion, while foreign direct investment accounted for 2.8% of GDP, below the government's 3.4% objective.

According to the General Authority for Statistics (GASTAT), all major economic sectors recorded positive annual growth during the quarter, reflecting continued momentum in the kingdom's economic diversification drive.

Dubai, UAE -- China’s foreign exchange reserves rose to $3.4422 trillion at the end of May, their highest level in several months, as a weaker U.S. dollar and changes in global asset prices boosted the value of the country's holdings, official data showed on Sunday. The reserves increased by $31.7...

Dubai, UAE -- Global cereal production is expected to decline by 2% in the 2026/27 season to 2.982 billion tons, largely due to lower wheat harvests, the United Nations Food and Agriculture Organization (FAO) said in its latest Cereal Supply and Demand Brief. The projected decline follows a record 3.043...

Dubai, UAE -- Annual inflation across the Organisation for Economic Co-operation and Development (OECD) accelerated to 4.4% in April from 4.0% in March, driven by a sharp rise in energy prices and higher consumer costs across most member countries. Headline inflation increased in 23 OECD countries, with the largest rises...

A report published by the World Economic Forum (WEF) and consulting firm Oliver Wyman found that fragmentation accelerated through 2025 and 2026 as governments expanded tariffs, investment controls and other economic security measures.

Non-oil activities drove growth as construction, finance, real estate and transport sectors posted robust gains, underscoring diversification efforts and long-term economic development goals.

United States forces said they have attacked missile launch sites and mine-laying vessels in southern Iran, in what a US military spokesman described as “self-defence” strikes. Earlier, Iranian media reported explosions in the southern port city of Bandar Abbas.

The PMI report finds that MENA will require up to 330,794 construction project management professionals by 2035 under a high-growth scenario, a 32% increase in demand compared with 2025 levels.

Bitcoin has already endured five consecutive months of declines since reaching an all-time high of $126,500 in October 2025. February marked the fifth straight negative month, reflecting sustained selling pressure and deteriorating sentiment across the sector, writes Simon Peters, Crypto Analyst at eToro.

The asymmetry at the heart of this war’s economic geography is stark. The US imports relatively little oil through Hormuz. More than 80% of oil and LNG shipped through the strait in 2024 went to Asian markets, with China, India, Japan and South Korea the primary destinations, he adds.

Fed Chair Jerome Powell signalled a cautious approach, noting that elevated energy prices and geopolitical tensions could complicate the inflation outlook, even as markets continue to expect potential easing later in the year.

Kelsey Goodman of the World Economic Forum discusses Strait of Hormuz disruptions, global trade risks, and how GCC economies can turn crisis into opportunity.

Several ports suspended operations in the Middle East after drone strikes. DP World said operations at Jebel Ali port in Dubai, one of the world's busiest container ports, had been suspended due to a fire after "aerial interception," he adds.

There are, of course, technical hurdles to overcome, too, one of which is modernizing legacy systems. Many enterprises still operate on outdated infrastructures that simply weren’t designed for the demands of modern, data-driven intelligence.

Lale Akoner, Global Market Analyst, says while the escalation has introduced new risks, the broader investment case for equities in 2026 remains intact—though the path forward has become more dependent on macroeconomic factors.

The escalating conflict involving Iran, Israel and the United States is emerging as a major test for the Gulf’s sovereign wealth funds, which collectively manage around $5 trillion in global assets

Muscat, Oman -- Gulf Cooperation Council countries recorded strong performance in agriculture, livestock and fisheries during 2024, reflecting the growing role of these sectors in supporting food security and economic diversification. Data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf showed the...

The dollar still functions as the world’s primary safe haven, and in moments of acute geopolitical uncertainty, capital flows toward US assets, particularly when positioning had been stretched against it.

Jamil Shinawi, CEO and Co-founder of AHOY and co-founder of Actual VC, speaks to TRENDS about risk, capital efficiency, and building scalable ventures in MENA.

Fahad AlSharekh says the GCC’s edge isn’t startup mimicry but global investment power — backing AI, infrastructure and category leaders early, not chasing hype.

Futuristic, lifestyle-changing entrepreneurial ideas are targeting liquid GCC markets, where hyperscalers and deep-pocketed sovereign and private investors and family offices fuel growth ambitions.

With national campaigns such as The Emirates: The Startup Capital of the World setting targets of training 10,000 Emiratis and creating 10 unicorns, the Sharjah Entrepreneurship Center (Sheraa) is emerging as a key engine driving this shift.

Dubai faces substantial supply headwinds that may absorb currency-driven demand without triggering significant price gains. Approximately 45,000-50,000 new residential units are expected in 2025-2026, with vacancy rates elevated in older secondary locations, he adds.

The GCC is competing to build world-class technology hubs, investing heavily in AI, infrastructure, and sovereign capital to drive digital transformation, attract global partners, and position the region as a leading innovation powerhouse.

The GCC has quickly moved from passive capital allocation into active ecosystem building, spurred on by heavy sovereign capital and large infrastructure bets, setting the region apart from Europe and US markets. 

Titled Creative Futures: The Springboard for Sustained Economic Growth and Diversification, the report argues that cultural and creative industries — including film, music, design, gaming — have moved from the margins of economic policy to its core.

Saudi Arabia and the UAE are leading the gaming surge with world-class ecosystems and youth-driven expansion. Across the region, governments increasingly recognize gaming and esports as key drivers of future economies.

By pairing sovereign capital with frictionless regulation, Doha reversed the startup playbook, attracting investors and founders first, then letting an ecosystem form around them naturally

Over the next five years, knowledge and innovation will redefine the MENA region’s economic landscape, moving it beyond traditional resource dependence, says Mark Mortensen, Associate Dean and Professor of Organizational Behavior at INSEAD.

A visiting Qatari official on Monday announced a multi-million dollar aid package for Lebanon, primarily to support the country's crumbling electricity sector.