PWC – Middle East Economy Watch, April 2024

The ongoing geopolitical crisis in the Middle East has had a significant impact on global trade, leading to disruptions in the Red Sea trade route and increased interest in alternative land routes across the Arabian Peninsula and Levant. The region is also seeing a growing focus on sustainability and green financing, with countries like the UAE and Saudi Arabia experiencing a surge in green investment. Despite uncertainty surrounding oil demand growth, OPEC+ has decided to maintain production levels in the second quarter, with Middle Eastern producers implementing additional cuts. Gas demand, however, is showing promising growth, with Qatar and Abu Dhabi expanding their LNG capacity. Non-oil trends in the region, such as GDP and PMI indicators, are showing positive growth in countries like Saudi Arabia and the UAE. Inflation has decreased, but there are still pressures on rents. OPEC+ has decided to extend their cuts into the second quarter to balance the uncertainties surrounding oil demand growth and ensure price stability.