Mubasher: The GCC economies saw a positive year during 2018, as a result of the increase in oil production and a better fiscal environment.
Saudi Arabia, the UAE, and Qatar recorded fiscal surpluses last year, while Oman succeeded in shrinking its deficit, according to a report released by Global law firm Hogan Lovells.
"GCC economies have proved to be resilient in the face of, at times, depressed oil prices. The growth potential of these markets is huge and the reform drive is continuing,” managing partner of Hogan Lovells Middle East, Rahail Ali, said.
However, the region may face some challenges in 2019 including the gross domestic product (GDP) growth, oil prices, and the geopolitical situation, the report found.
In 2018, a group of factors played in the favour of the GCC economies, including the solidification of trade and investment ties new markets in Africa, Europe, and Asia.
The report said: “The Gulf region has emerged as Silicon Valley's leading venture investor, with key players establishing offices there to focus their high-value tech investments.”
The region has become more open to foreign investments, following the conduct of various legal and economic reforms, Hogan Lovells noted.
