Despite ongoing tensions and conflicts in the Middle East, economic growth prospects in many countries are improving, according to a September 2025 report from White & Case.
At the time of the report’s publication, the International Monetary Fund expected gross domestic product (GDP) in the Middle East and Central Asia to grow 3.4 percent in 2025, up from 2.4 percent in 2024, and forecasted 3.5 percent for 2026. In Saudi Arabia, it predicted 3.6 percent and 3.9 percent growth in 2025 and 2026, respectively.
The optimism surrounding the Middle East can be attributed to several factors. For one, the Middle East’s sizable sovereign wealth funds (SWFs) continue to invest heavily — even beyond the petrochemicals sector. Regulatory reforms aimed at delivering greater transparency and improved governance are boosting capital markets, while the Gulf Cooperation Council’s pursuit of free trade agreements provides further support.
According to the report, the
