A Reuters survey of economists indicates that Gulf economies are poised for stronger growth in 2025 compared to 2024, driven by increased oil production and efforts to diversify revenue sources. Despite significant reductions in oil output since late 2022, oil prices have remained relatively stable, although geopolitical tensions and U.S. trade uncertainties have affected demand and impacted OPEC revenues. The poll forecasts Brent crude to average $67.86 per barrel in 2025, with current prices hovering around $70. Saudi Arabia’s GDP is projected to grow by 3.8% this year, nearly triple the 1.3% growth recorded in 2024. Analysts note that OPEC+ is returning more oil to the market faster than initially anticipated, with Saudi Arabia continuing to invest in diversification projects that should support sustained growth. The United Arab Emirates is expected to lead regional growth, with forecasts of 4.8% in 2025 and 4.6% in 2026, an improvement from previous estimates of 4.5% and 4.2%. Qatar is anticipated to experience growth of 2.7% in 2025, accelerating to 5.4% in 2026 as its major liquefied natural gas (LNG) expansion begins operation. Both Qatar and the UAE are reducing their reliance on oil by developing tourism sectors. Oman and Saudi Arabia are highlighted for their fiscal discipline and reform efforts in response to lower oil revenues. Growth in Oman and Kuwait is projected to reach three-year highs of 2.8% and 3.0%, respectively, in 2025. Bahrain is an exception, with growth expected to slightly decline to 2.9% from 3.0% in the previous year. Inflation across the Gulf is anticipated to remain low, with regional forecasts indicating rates within a 1.0%-2.5% range for 2025. The UAE and Saudi Arabia are expected to maintain inflation at 2.0%, while Qatar’s rate is projected at 1.5%. Analysts note that while the U.S. dollar has weakened against G-8 currencies this year, its strength against regional currencies has helped limit increases in import costs driven by exchange rate fluctuations.