Going local

Middle East growth has picked up strongly following the financial crisis of 2008-2009, driven to a large extent by growth in the Gulf Cooperation Council (GCC) countries. The GCC region’s real GDP growth rate averaged 5.2 percent from 2010 to 2014, outperforming most developed countries throughout this period.

Most GCC countries have benefited from high oil prices over the past decade, which contributed to significant wealth creation for both institutional and private investors. Oil revenue still represents the majority of the region’s GDP, but the countries are making efforts to diversify their economies. The United Arab Emirates (UAE) and other countries in the region have launched development plans (e.g. Abu Dhabi Vision 2030, Qatar National Vision 2030, UAE Vision 2021) to develop other sectors such as aviation, tourism, transportation, and financial services.

Oil revenues have allowed the countries in the region to invest heavily in infrastructure projects that today form a solid base for the development of a more diversified economy. However, the recent fall in oil prices could challenge near-term growth and investments.