Doha: The GCC countries account for 40% of the region's output and its growth is projected to accelerate from 2.2% in 2024 to 3.5% this year and 4.4% in 2026. This will be driven by gradual phasing out of OPEC plus production cuts and strong non-oil sector expansion.

Delivering the keynote address during the MENA Forum on Insolvency and Restructuring Reform, yesterday Sandeep Mahajan, World Bank Group Mena Regional Practice Director discussed the near-term outlook for the region, the longer-term challenges, particularly those linked to jobs and demographics. He also elaborated the role of the private sector and the importance of insolvency systems.

The MENA region holds tremendous potential and its people are talented and entrepreneurial. Its markets are young and dynamic and the geographic position makes it a bridge between continents, cultures, and opportunities. Yet, potential itself alone is not enough, realizing it will require bold choices and shared commitments, he said.

Explaining the near-term outlook, Mahajan said“As we look ahead, the economic outlook for the MENA region presents both encouraging signs and significant uncertainties. On a positive note, growth prospects have improved in recent months, reflecting stronger international trade, milder-than-expected tariff increases, and more accommodating financial conditions.”

Global and regional forecasts at the World Bank for 2025 have been revised upward since last spring, a welcome sign that resilience and adaptability are at work.

But at the same time, even with this improvement, global growth in 2025 will still be about half a percentage point lower than last year. That's a reminder that momentum is there, but this momentum is fragile, he said.

For the region, he noted that the average economic growth is expected to be 2.8% this year, 3.3% next year, and this compares to 2.4% in 2024.

Inflation, thankfully, in the region remains contained. In most countries, the median inflation rate in the region is projected at 2.3% in 2025 and 2026, helped by lower global commodity prices and stable exchange rates.

Mahajan said, across the region,“We are now seeing examples of leadership and reform that are shaping the business landscape.

Qatar has taken a significant step forward with the law on establishing the investment in policy support. This reform has led to faster procedures and modern case management, a clear signal that Qatar is building a justice system that is fast and clear.

From Qatar's judicial excellence to Saudi Arabia's leadership, from Egypt's inclusivity to determination now seen in Morocco, Jordan, Pakistan, and elsewhere, one message shines through clearly - this region is not just keeping pace with the world, it is shaping it with a renewed spirit of leadership, and innovation, he added.

Over two days, the forum features specialised sessions on building the capacity of insolvency practitioners through effective regulatory frameworks, licensing, and supervision. It also highlights the role of technology and artificial intelligence in improving legal and regulatory efficiency, and examines the relationship between laws and insolvency legislation. A workshop on preventive insolvency tools discusses advanced global restructuring strategies, including early-warning mechanisms and pre-insolvency frameworks.

On the second day, the forum put spotlight on specialised sessions about building the capacity of insolvency practitioners through effective regulatory frameworks, licensing, and supervision.

It will also highlight the role of technology and artificial intelligence in improving legal and regulatory efficiency, and examines the relationship between laws and insolvency legislation.

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