A pivotal year for progress

The year 2025 marks the end of the first quarter of the 21st century, a pivotal year prompting all stakeholders to reflect on the progress made so far, both regionally and globally. This moment calls for a careful examination of the past and preparation for the future.

Globally, the Organization for Economic Cooperation and Development (OECD) forecasts a 3.3% economic growth rate for 2025. This projection is largely consistent with the International Monetary Fund's (IMF) forecast of 3.2%. According to the IMF's October 2024 report, "the battle against inflation is nearing its end," with inflation expected to potentially fall to 3.5% by the end of this year. These figures suggest that the global economy remains resilient despite numerous long-term challenges.

Regionally, the outlook is also relatively optimistic. The World Bank, in its latest economic update, predicts that the Middle East and North Africa (MENA) region's economic growth will rise to 3.8% in 2025, up from 2.2% in 2024. The IMF also holds a similar growth trend forecast, estimating the region's growth at 4%. Saudi Arabia is one of the main drivers, with its economic growth projected to reach 4.4%.

Non-oil economies remain key drivers of accelerated growth. For example, in the UAE, the Dubai Press Club has launched the Dubai Content Creators Program. This program aims to help content creators master the skills to produce more engaging digital content, aligning with the goals of Dubai’s D33 Agenda, one of which is to double the emirate’s economic size. The initial phase will focus on enhancing participants' economic literacy.

Meanwhile, in Saudi Arabia, the Red Sea is rapidly emerging as a destination that combines luxury, tourism, and sustainability. In support of Saudi Vision 2030, this project is at the forefront of the country’s tourism revolution and is expected to contribute around $5.9 billion to the nation’s GDP. Managing sustainable development efforts is indeed one of the region's focuses. The World Economic Forum (WEF) reports that a $30 trillion investment gap remains to achieve the global net-zero emissions target by 2050, making sustainability even more crucial. Protecting the planet, with the help of investments, climate, and clean technology, is one of the five pillars of the upcoming Davos 2025 Annual Meeting, scheduled for January 20-24. This year, the WEF's annual meeting will bring together leaders and change-makers under the theme of "Cooperation in a Fractured World," highlighting the collective action needed in today's technology-driven economy.

Many public and private sector entities acknowledge that they are at a critical juncture, especially this year. The need to balance growth and sustainability is more pressing than ever. For example, Mastercard, a leader in the payments industry, plays a vital role in empowering small and medium-sized enterprises and views sustainability as "embedded in everything they do." This is reflected in initiatives like the Sustainable Card Program and the Mastercard Carbon Calculator.

These efforts demonstrate that while challenges persist, they also present unique opportunities. It is our responsibility to make the most of these opportunities. Please note that the views expressed in this article are solely those of the author. The information provided in this article is for informational purposes only and does not constitute tax or legal advice, nor does it constitute financial or investment advice. Please see our full disclaimer policy.