GDP growth projected at 3.2 per cent in Mena region, Pakistan for 2025

Countries in the Middle East and North Africa region, and Pakistan, are showing economic resilience, with GDP growth projected at 3.2 per cent in 2025, an increase from 2.1 per cent in 2024, an International Monetary Fund top official said.

In the UAE, GDP growth is projected at 4.8 per cent and 5.0 per cent in 2025 and 2026, respectively. 

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During a press briefing, Director of the IMF for the Middle East and Central Asia Department Dr. Jihad Azour said that economies in MENA and Pakistan have remained relatively resilient, even as global uncertainty and regional tensions carry on. The briefing is part of IMF's Regional Economic Outlook: Middle East and Central Asia for the month of October.

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UAE’s economy

GDP growth in the UAE remains positive primarily due to oil exports, according to the IMF report. Oil prices are expected to average $69 per barrel in 2025, whereas it was $76 in 2024. The report said that this supports broader economic growth, alongside diversification into non-oil sectors. 

In terms of non-oil exports, the Gulf Cooperation Council (GCC) countries have driven their economic growth from investments in tourism, technology, and AI, Azour told reporters at the press briefing.  

He added that these countries were able to withstand several shocks, from COVID-19 to geopolitical tensions, due to structural reforms that improved the way the market works, which is why GDP remains strong.

“Looking ahead, GDP growth in MENA is expected to strengthen further this year and next, driven by resilient demand, high oil output, and ongoing reforms,” Azour said, cautioning that this positive outlook still comes with significant risk. Global uncertainty, geopolitical risks, slower global demand from debt-ridden countries, and persistent inflation in advanced economies are all things to be wary of, he said.

International Monetary Fund

The IMF, a United Nations specialised agency, is an international organisation with 191 member states that provides policy advice, financial assistance, and capacity development to help governments implement economic policies. As of October 2025, the largest borrower of the IMF is Argentina, with a total outstanding debt of 40.9-billion Special Drawing Rights (SDR), equivalent to about $59 Bn.

The IMF Regional Economic Outlook for the Middle East and Central Asia looks at these regions’ recent economic developments that have affected economic performance and address key challenges. The report also provides country-specific data and analysis.

Hind Aldah

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hind@khaleejtimes.com

Hind Aldah covers business, tech, crypto and all that jazz for a younger audience. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.