MENA Outlook for 2023

Economic growth in MENA will moderate slightly, coming down to 4% from its current 4.4%, as the effects of high oil prices stabilize. Nonetheless, MENA energy-exporting markets will continue to attract attention from multinational companies, particularly as the rest of the world suffers impacts from looming recessions through H1 2023. The oil-exporting GCC—led by Saudi Arabia—will see the most investment attention as well as growth expectations from firms, leading to rising competition. Amassed oil revenues will drive investment, as new projects enter implementation phases. However, operating and living costs will remain highly elevated through H1 2023, as inflation fails to come down meaningfully. Financial risk management, talent acquisition, supply chain resilience, and pricing strategies will remain the most important strategic priorities to perfect, as margin erosion ensues through the first six months of the year. [tab] Executive Summary MENA in the Global Context Global Drivers