Faster GCC growth likely next year as oil production set to rise

As we enter the final quarter of 2021, it is a good time to look back on how the region’s economies have performed so far compared with our expectations at the start of the year and also to recalibrate our outlook for next year. The UAE has yet to release official gross domestic product statistics for the first and second quarters of this year, but the PMI survey data suggests that the non-oil sectors have continued their gradual recovery following last year’s Covid-related contraction. Companies have generally reported increased activity on a monthly basis and domestic demand appears to be strengthening. Although global travel restrictions have continued to weigh down the tourism sector, the outlook for the fourth quarter is brighter here as well.