The socio-economic drivers in the last year have been somewhat turbulent across the globe. We have seen the rise in US Federal Reserve interest rates leading to wide fluctuations across major markets, a slowing Chinese economy and ongoing stress on the Eurozone due to existing monetary and migration challenges in the face of Brexit, all demonstrating that the global economic context is increasingly volatile.
Financially sound GCC nations are now adapting to a new normal of oil prices around $50 per barrel and shifting to austerity measures in budgetary allocations and government spending to balance their economies. Furthermore, the Middle East has witnessed growing geopolitical unrest with nations pushed to increase military spending, further straining the economic outlook. Multiple downward pressures have influenced both business and consumer confidence and repeatedly pushed financial institutions to lower the region’s growth forecast in the last year.
Source : Core Savills