MEcon | September 2025 Edition

Saudi Arabia

Real GDP in Q2 2025 grew by 3.9% year-on-year due to strong performance across all sectors, with the non-oil sector recording the highest growth at 4.6% YoY. The Kingdom decided to freeze rents for five years in Riyadh to curb rising housing and commercial costs, safeguard affordability and stabilize the rental market. Meanwhile the capital is set to host key sporting and entertainments events, including the WrestleMania 43 in 2027, reinforcing its status as a business and cultural hub. 

United Arab Emirates

The UAE economy grew 3.9% year-on-year in Q1 2025, down from 5.0% year-on-year in Q4 2024, due to cooling down of several non-oil sectors, including transport and construction, compared to the previous quarter. Nevertheless, the country has expanded its global economic ties through a series of major agreements and approved a National Policy for Economic Clusters aimed at boosting non-oil growth, strengthen trade and attracting foreign direct investment (FDI), among others.   

Qatar

Qatar’s economy grew by 1.9% in Q2 2025 year-on-year, driven by a 3.4% growth in the non-hydrocarbon sector, which now accounts for 65.6% of GDP. Additionally, the non-energy PMI for Qatar continued to expand in August 2025, reflecting a more robust growth rate that exceeded the 12-month average of 51.7. Qatar is reforming its laws and regulations governing businesses to become a more attractive destination for FDI in line with its diversification agenda. 

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