Increasing oil and gas prices, coupled with a rise in demand, is expected to generate higher revenues for the Saudi Arabian and Qatari economies. Against this backdrop, GlobalData, a leading data and analytics company, has revised its 2022 real gross domestic product (GDP) growth forecast for Saudi Arabia and Qatar, to 7.5% and 4.3% respectively, in September 2022, up from 5.1% and 4.1% that was forecast in February 2022.

Saudi Arabia and Qatar currently hold 17.3% and 1.6% of the world’s crude oil reserves, and 4.1% and 11.6% of the natural gas reserves, as of 2021, according to OPEC. Following the sanctions on Russia, European economies are looking to diversify their oil and gas imports. Saudi Arabia’s shipments to Europe via the Sumed pipeline across Egypt have soared since February 2022, while Qatar’s exports to Europe are also expected to rise amid Europe’s hunt to replace Russian energy imports.

Bindi Patel, Economic Research Analyst at GlobalData, comments: “Saudi Arabia and Qatar’s strategies to diversify their economy, coupled with a rise in demand from Europe, will provide an impetus to the economic growth of these two countries in the coming years. According to GlobalData’s Country Analytics Database, Qatar’s total merchandise exports recorded an average annual growth rate of 69.3% during January to July 2022. In addition, total merchandise exports for Saudi Arabia during the same period recorded an average annual growth rate of 80.7% on higher demand and elevated prices. Oil prices registered an annual growth rate of 26.6%, as of September 12, 2022.”

Patel continues: “Qatar’s GDP is expected to significantly increase in 2022 as the country is investing $300 billion in infrastructure development as it prepares to host the World Cup 2022. GlobalData expects Qatar’s economy growth to be at 4.3% in 2022.”

In 2022, the Saudi Arabian economy is forecast to grow by 7.5%, the fastest among all other major economies, and is expected to surpass India, China, and other major Western nations. Higher prices and increasing production of fossil fuels, along with the reforms undertaken to successfully implement Saudi Arabia’s Vision 2030, is expected to drive the growth of the Saudi Arabian economy. According to the General Statistics Office of Saudi Arabia, the country’s oil exports amounted to $31 billion in June 2022, the highest in six years.

Patel concludes: “Various ongoing and upcoming investments in the oil and gas sector will not only help the Saudi Arabian and Qatari economies to achieve a high GDP growth rate, but it will also help European economies to replace Russian energy imports.”