The IMF commends the GCC’s diversification efforts but warns of risks. The IMF has expressed its approval of the ongoing efforts by the GCC to diversify their economies. The Fund praised the region’s initiatives to broaden sources of economic growth and fiscal revenues beyond the oil sector. However, it warned that risks remain, particularly given the volatility of global oil markets.
Saudi Arabia still facing significant headwinds. Saudi Arabia continues to grapple with significant economic challenges, driven by declining oil prices and the imposition of new U.S. "Liberation Day" tariffs. To bridge the financing gap, Saudi Arabia is likely to lean more heavily on external borrowing to fund its fiscal deficits and Vision 2030 projects.
Next week's data. Qatar’s CPI trade balance (February), PMI composite (April, previous 52.0), Israeli chain store sales (March, previously 1.1% MoM) and Saudi Arabia’s GDP (1Q25, previously 4.5%) and PMI (April, previous 58.1) are the important data releases to watch this week.