MEcon | April 2026 Edition

Saudi Arabia 

KSA’s non-oil PMI contracted for the first time since 2020 in March 2026 due to ongoing conflict-related disruptions. The IMF and World Bank downgraded their 2026 GDP growth forecasts for the Kingdom but expect it to be less affected than other GCC neighbours. Meanwhile, PIF approved its 2026–2030 strategy, shifting from rapid growth to sustained value creation, in line with broader state focus on spending prioritization and building resilience against external shocks.

UAE

The UAE ranked ninth in global goods exports in 2025 due to stronger domestic production. However, the real test now lies in how its trade system withstands regional conflict affecting key shipping routes. Despite a slowdown in the non-oil PMI to 52.9 in March, growth continues amid uncertainties. Meanwhile, government and institutional responses remain proactive and multifaceted, focusing on market stability, liquidity support, and business resilience.

Qatar

While Qatar’s economy showed growth at the end of 2025, with GDP rising 2.0% in Q4, the recent regional conflict’s impact is beginning to emerge. Early signs include steep declines in the non-energy PMI and inbound tourism, signalling slower non-hydrocarbon economic activity. In response, Qatar has opted to continue with reforms whilst reinforcing fiscal discipline rather than implementing short-term countercyclical spending to support the economy.

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