DUBAI: The Middle East’s regional GDP will grow by 2.4 percent this year according to a report commissioned by the Institute of Chartered Accountants in England and Wales (ICEAW).

It represents a similar rate to the region’s average growth trajectory in the last decade, as countries double down on their pandemic exit strategies.

The report reveals that business confidence in the region has strengthened in recent months on the back of eased COVID-19-related restrictions and an energetic vaccine campaign.

Strong Purchasing Managers’ Index (PMI) readings indicate a positive outlook throughout the year, the report said.

This shows a marked improvement from the 4.4 percent economic contraction felt across the region last year.

The region can particularly benefit from the expected surge of travel demand once the rest of the world opens up, the report noted, with major global events set to happen in Dubai and Qatar.

“The outlook for most Middle Eastern economies looks positive this quarter, but keeping coronavirus levels low will be essential to ensure economies can return to growth,” the company’s regional director, Michael Armstrong, said.

He highlighted the need to continue diversification strategies to reduce reliance in the oil industry, which has seen gradual recovery from its performance in 2020.

“The rise in the oil price has boosted revenue prospects for GCC producers,” ICAEW Economic Adviser Scott Livermore, said.

“Higher oil revenue gives governments more scope to support post-pandemic recoveries without undermining efforts aimed at improving medium-term fiscal sustainability,” he added.