Mubasher: The GCC region’s macroeconomics improved significantly in 2018 after oil output increased, raising gross domestic product (GDP) growth, according to the third annual investment outlook report released by Hogan Lovells.
Saudi Arabia, the UAE, and Qatar resumed achieving fiscal surpluses in 2018, while Oman’s deficit fell significantly and Bahrain recovered after obtaining support from Saudi Arabia, the UAE, and Kuwait, the global law firm noted.
In 2019, GCC nations will seek to develop ties with new markets after the US became a less predictable partner, Hogan Lovells said in its report released on Monday, noting that although Brexit has caused financial markets to suffer, the Gulf region may benefit from this opportunity by securing trade deals directly with the UK.
Having created a series of technology start-ups in the Middle East, Gulf nations have become Silicon Valley's leading venture investors.
As for attracting more foreign investments, GCC countries are conducting a series wide-range reforms, releasing state-owned assets, and reducing restrictions such as enacting the new public-private partnership (PPP) law in Saudi Arabia and probably Oman, as well as the foreign investment laws in the UAE and Qatar.
“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, while government infrastructure spending has grown - a key hook for foreign investment,” Hogan Lovells Middle East’s managing partner Rahail Ali stated.
