RIYADH: According to the latest World Bank report, Saudi Arabia’s economy is expected to grow by 8.3% in 2022.

In its Gulf Economy Update, the World Bank found that growth in the oil sector is driving the Kingdom’s economy.
According to the report, the Gulf Cooperation Council countries are expected to grow by 6.9% in 2022 before declining to 3.7% and 2.4% in 2023 and 2024 respectively.

The report also showed that sharply rising oil and gas prices, combined with the ongoing conflict in Ukraine, are likely to wind up for the GCC.

The World Bank also noted that GCC countries, which have been dependent on oil for decades, are still struggling to diversify their economies.

Non-oil economy progresses, but non-oil export success is limited,” said the report.

Gulf-wide budget surplus is expected to reach 5.3% of the gross domestic product by the end of this year.

The surplus then leveled off at 4.2% of GDP in 2023 and 2% in 2020, a significant improvement from the pandemic-related deficit of 10.8% of GDP in 2020.

The report noted that by the end of this year, Saudi Arabia will post its first surplus in nine years at 6.8% of GDP, while Bahrain will be the only GCC country to remain in the red in 2022.