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IMF Raises Saudi Arabia’s Growth Forecast to 3.6% for 2025

A view of the Saudi capital, Riyadh. (AFP)
A view of the Saudi capital, Riyadh. (AFP)
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IMF Raises Saudi Arabia’s Growth Forecast to 3.6% for 2025

A view of the Saudi capital, Riyadh. (AFP)
A view of the Saudi capital, Riyadh. (AFP)

The International Monetary Fund (IMF) has revised upward its forecast for Saudi Arabia’s economic growth in 2025 and 2026, citing expected increases in oil revenues and accelerating growth in non-oil sectors. The update places the Kingdom among the world’s fastest-growing economies, just behind India and China.

In its latest World Economic Outlook update, released Tuesday, the IMF now projects Saudi GDP growth at 3.6% in 2025 - up 0.6 percentage points from its April forecast. The Fund also lifted its 2026 projection to 3.9%, compared to its earlier estimate of 3.7%.

Among the 30 countries reviewed in the IMF report, only China saw a larger upward revision. The Kingdom’s revised forecast for 2025 also surpasses the Middle East and North Africa (MENA) regional average of 3.4%.

The upgrade reflects several key developments: the anticipated increase in oil exports following OPEC+’s decision to phase out voluntary supply cuts, stronger-than-expected oil prices, and sustained momentum in Saudi Arabia’s non-oil economy. An IMF official noted that strong domestic demand, fueled in part by major government-led projects, has further reinforced growth prospects.

The revised figures align closely with those from an IMF mission to Saudi Arabia in June, which estimated 2025 growth at 3.5%. That mission concluded that the Kingdom’s economy had demonstrated remarkable resilience in the face of global headwinds. Non-oil sectors continue to expand steadily, inflation remains contained, and unemployment has fallen to record lows.

The IMF stressed the importance of ongoing structural reforms to support long-term, non-oil growth and economic diversification, which is seen as an essential priority amid global uncertainty.

It praised Saudi Arabia’s broad-based reforms in corporate regulation, governance, labor markets, and financial systems. New legislation covering investment frameworks and labor policies is expected to boost investor confidence and productivity.

This positive outlook comes as the Kingdom continues to implement fiscally disciplined policies. Ratings agency Fitch recently affirmed Saudi Arabia’s sovereign credit rating at “A+” with a stable outlook, underscoring the country’s strong external balance sheet, low public debt, and robust ability to sustain growth without compromising financial stability.

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Business

Morocco to Open Two Deepwater Ports in 2026 and 2028, Minister Says

A general view of Tanger Med Port, on the Strait of Gibraltar, east of Tangier, Morocco June 6, 2024. (Reuters)
A general view of Tanger Med Port, on the Strait of Gibraltar, east of Tangier, Morocco June 6, 2024. (Reuters)
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Morocco to Open Two Deepwater Ports in 2026 and 2028, Minister Says

A general view of Tanger Med Port, on the Strait of Gibraltar, east of Tangier, Morocco June 6, 2024. (Reuters)
A general view of Tanger Med Port, on the Strait of Gibraltar, east of Tangier, Morocco June 6, 2024. (Reuters)

Morocco will open a new deepwater Mediterranean port next year and another on the Atlantic in 2028, Equipment and Water minister Nizar Baraka said, as the North African country aims to replicate the success of Africa's largest port, Tanger Med.

Nador West Med, under construction on the Mediterranean, is scheduled to be operational in the second half of 2026, Baraka told Reuters in an interview.

It will offer 800 hectares for industrial activity, with plans to expand to 5,000 hectares, surpassing Tanger Med's industrial zones, he said.

The port will also host Morocco's first liquefied natural gas (LNG) terminal - a floating storage and regasification unit (FSRU) - linked by a pipeline to industrial hubs in the northwest, as Morocco pushes investments in natural gas and renewable energy to reduce dependence on coal.

Further south on the Atlantic coast, Morocco is building a $1 billion port in Dakhla, in the disputed Western Sahara region.

The facility will be surrounded by 1,600 hectares for industrial activities and 5,200 hectares for farmland irrigated by desalinated water, Baraka said.

"The port will be ready in 2028 and will be Morocco's deepest at 23 meters," Baraka said. Such depth would support heavy industries focused on processing raw materials from Sahel countries, he said.

Officials have marketed Dakhla as a gateway for landlocked Sahel nations to global trade.

Both Nador and Dakhla ports will include quays dedicated to exporting green hydrogen once production begins, Baraka said.

Nador and Dakhla would be Morocco's third and fourth deepwater ports after Tanger Med and Jorf Lasfar, an energy, bulk cargo and phosphates exports port on the Atlantic.

By 2024, industrial zones near Tanger Med hosted 1,400 firms employing 130,000 people across sectors including automotive, aeronautics, textiles, agri-food and renewable energy, official figures show.

Morocco is also considering building a port in Tan-Tan on the Atlantic in partnership with green hydrogen investors, Baraka said. "We are conducting studies to decide the appropriate size of the port," Baraka said.

Business

Saudi Arabia, Qatar Sign High-Speed Railway Project Implementation Agreement

The project is slated for completion in six years, utilizing the latest railway technologies and smart engineering to ensure safe and seamless operation and to adhere to the highest international standards of quality and safety - SPA
The project is slated for completion in six years, utilizing the latest railway technologies and smart engineering to ensure safe and seamless operation and to adhere to the highest international standards of quality and safety - SPA
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Saudi Arabia, Qatar Sign High-Speed Railway Project Implementation Agreement

The project is slated for completion in six years, utilizing the latest railway technologies and smart engineering to ensure safe and seamless operation and to adhere to the highest international standards of quality and safety - SPA
The project is slated for completion in six years, utilizing the latest railway technologies and smart engineering to ensure safe and seamless operation and to adhere to the highest international standards of quality and safety - SPA

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and Emir of the State of Qatar Sheikh Tamim bin Hamad Al Thani witnessed the signing of an agreement to implement a high-speed electric passenger railway project connecting the Kingdom of Saudi Arabia and the State of Qatar, a step reflecting the deep-rooted fraternal and historical relations between the two countries.

The agreement was signed by Minister of Transport and Logistic Services Saleh Al-Jasser and Minister of Transport of Qatar Sheikh Mohammed bin Abdulla bin Mohammed Al Thani within the framework of the Saudi-Qatari Coordination Council, representing a strategic step aimed at enhancing cooperation, developmental integration, and sustainable development, and demonstrating a shared commitment to regional prosperity, SPA reported.

The high-speed railway line spans 785 kilometers, strategically connecting the capital cities of Riyadh and Doha, and will pass through key stations including Hofuf and Dammam, while also linking King Salman International Airport and Hamad International Airport.

The train will form a new artery for rapid and sustainable transportation, improving the regional travel experience with speeds exceeding 300 kilometers per hour, reducing travel time between the two capitals to approximately two hours, significantly enhancing mobility, boosting trade and tourism, and improving quality of life.

The project is slated for completion in six years, utilizing the latest railway technologies and smart engineering to ensure safe and seamless operation and to adhere to the highest international standards of quality and safety.

It is expected to have an economic impact of nearly SAR115 billion on the GDP of both countries, serve over 10 million passengers annually, and create more than 30,000 direct and indirect jobs.

The high-speed railway will also contribute to environmental sustainability by reducing carbon emissions and supporting the transition to more efficient and innovative transportation patterns for smart and sustainable mobility in the region.

This makes the rail line one of the most important strategic projects supporting regional development and strengthening connectivity and integration among the Gulf Cooperation Council countries.

Business

Türkiye's Pegasus Airlines Acquires Biggest Czech Airline, Smartwings, in a Deal Worth $180 million

A passenger plane of the ‘Pegasus’ airline lands at the ‘Stuttgart Airport’ in Stuttgart, Germany, Wednesday, May 3, 2023. (Bernd Weissbrod/dpa via AP, File)
A passenger plane of the ‘Pegasus’ airline lands at the ‘Stuttgart Airport’ in Stuttgart, Germany, Wednesday, May 3, 2023. (Bernd Weissbrod/dpa via AP, File)
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Türkiye's Pegasus Airlines Acquires Biggest Czech Airline, Smartwings, in a Deal Worth $180 million

A passenger plane of the ‘Pegasus’ airline lands at the ‘Stuttgart Airport’ in Stuttgart, Germany, Wednesday, May 3, 2023. (Bernd Weissbrod/dpa via AP, File)
A passenger plane of the ‘Pegasus’ airline lands at the ‘Stuttgart Airport’ in Stuttgart, Germany, Wednesday, May 3, 2023. (Bernd Weissbrod/dpa via AP, File)

Türkiye's Pegasus Airlines said on Monday it has signed an agreement to acquire the biggest Czech airline, Smartwings, along with its owner, Czech Airlines, from Prague City Air.

Pegasus said the deal, which is worth 154 million euros (almost $180 million) was a “step forward in our continued global growth journey,” Reuters reported.

The process of transferring the ownership of Czech Airlines should be completed in 12 months, Smartwings spokeswoman Vladimíra Dufková said.

Smartwings currently operates regular, charter and private flights to some 80 destinations with almost 50 planes. The airline previously negotiated a takeover by Polish national carrier LOT but that fell through over the weekend after Pegasus filed a rival bid.

Pegasus, a low cost carrier, that was established in 1990. It says it operates flights to 153 destinations in 54 countries.