Navigating Economic Challenges: MENA's Path Amidst Global Uncertainty

Countries in the MENA region face economic challenges due to falling oil prices, US tariffs, and reduced foreign aid. The IMF suggests that these factors could impede growth. The region's economies are urged to adapt and diversify, as foreign investment varies, with Gulf countries seeing more inflows.

The Middle East and North Africa are confronting formidable economic challenges as the International Monetary Fund highlights concerns in its latest regional outlook report. The region's recovery is threatened by recent tariff measures, fluctuating oil prices, and a decline in foreign aid.

Brent crude oil prices, once over USD 120 a barrel, are projected to stabilize between USD 65 and USD 69 by 2025, leaving energy-exporting nations susceptible to market instability. Jihad Azour from the IMF warns that economic growth could dip by up to 4.5% amid current tensions.

Structural reforms and diversifying economic relations are essential to mitigate these challenges, according to the report. The IMF continues discussions with countries like Syria and Lebanon, emphasizing the need for international support. Despite current uncertainties, foreign direct investment remains robust in the Gulf.

(With inputs from agencies.)