- The GCC presents a unique landscape amid a challenging global macroeconomic environment
- From future cities to industry diversification, we revisit the key drivers shaping the region’s future…
- …ahead of the HSBC GCC London Conference, 12-16 June
The GCC presents a unique landscape amid a challenging global macroeconomic environment. Saudi Arabia, UAE, Qatar, Bahrain, Oman and Kuwait are all pushing forward with initiatives that have the potential to change the way of life in the Middle East as they compete for a more prominent place on the global stage.
Our economists are constructive on the prospects for the countries of the Gulf Cooperation Council (GCC) and look for the region to outperform both its emerging and developed market peers and its own trend levels of economic gains. The non-oil sector, the dominant driver of domestic demand and employment and the key to the region’s long-term outlook, is set to deliver growth of close to 5%. Recent economic data support a constructive view. April PMIs, for example, were robust across the Gulf, showing activity maintaining strong momentum going into the second quarter of the year.
But whatever the short-term data, long-term trends and drivers are what underpin performance over time, and, in our view, there are many that make this emerging region worthy of the world’s attention.
From a demographic perspective, GCC nations are young, affluent, and witnessing shifts including smaller households and rising female labour participation rates. We think the region could benefit from twin “demographic dividends” with a young and educated population becoming a growing and more productive labour force – as well as increasingly sophisticated consumers.