Survey highlights regional resilience, driven by non-oil sector growth and strategic diversification efforts
Dubai, UAE: 22 January 2025: Despite global economic uncertainty, the Middle East is emerging as a beacon of resilience, according to the Q4 2024 Global Economic Conditions Survey (GECS) released by the Association of Chartered Certified Accountants (ACCA).
The survey revealed a 10% rise in new orders above historical averages for the region, signaling robust economic activity driven by diversification efforts and strong non-oil sector growth. While confidence levels dipped slightly in Q4, they remain among the highest globally, second only to South Asia.
Confidence levels in the Middle East declined in Q4, mirroring global trends, but remain close to historical averages. The region outperformed others like Western Europe and North America, buoyed by strong expansions in non-oil economies such as Saudi Arabia and the UAE, along with anticipated increases in oil production. The New Orders Index, a forward-looking indicator, recorded a significant rise in the Middle East, remaining well above its historical average, signalling continued economic momentum despite geopolitical concerns.
Key regional highlights:
- Resilient confidence levels: While global confidence hit its lowest point since Q2 2020, the Middle East maintained one of the highest confidence levels compared to other regions, second only to South Asia.
- Economic growth drivers: Robust non-oil sector growth, underpinned by diversification efforts, and easing U.S. Federal Reserve interest rates are expected to support the region’s economic expansion in 2025.
- Cost pressures: Moderately above historical averages, cost concerns remain manageable compared to Western Europe, where nearly 75% of respondents reported increased operating costs.
The Middle East is aligning with global trends by prioritising talent scarcity, regulatory changes, and cybersecurity as its top three risks for 2025. Addressing these challenges is crucial to sustaining economic growth and achieving ambitious national visions like Saudi Arabia’s Vision 2030 and the UAE’s long-term strategic plans.
Kush Ahuja, Head of ACCA, Middle East and Eurasia commented: “The Middle East demonstrates resilience despite global headwinds, thanks to strong policy frameworks and strategic diversification. While risks remain, the region’s economic outlook for 2025 remains robust, driven by forward-looking investments and reforms.”
As part of its commitment to empowering finance professionals, ACCA Middle East continues to support the development of innovative solutions and provide platforms for addressing regional challenges. The findings from GECS Q4 2024 will play a crucial role in guiding regional businesses and policymakers through the uncertainties of the coming year.
The full GECS Q4 2024 report, along with detailed regional analysis, is available here: https://www.accaglobal.com/gb/en/professional-insights/global-economics/GECS_q4_2024.html
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