The economy in the Middle East is witnessing both growth and stagnation, with notable developments in Qatar, Oman, and Saudi Arabia. These diverse trends underline the complexities of the region's economic landscape as countries adopt various strategies to enhance their financial health.

In Qatar, private sector exports have surged by 3.5 percent quarter-on-quarter, reaching 2.62 billion Qatari riyals ($719 million) in the second quarter of 2024. This growth aligns with the goals of the Third National Development Plan 2024-2030, which aims to boost private sector growth and increase the share of Qataris in the private workforce to 20 percent. The Qatar Chamber's report highlighted varied performance among exports based on the type of certificates of origin, with shipments under the General Model rising by 2.2 percent and those through the Unified Gulf Cooperation Council Model increasing by 15.3 percent. However, exports via the Unified Arab Model experienced a decline of 24 percent compared to the previous quarter.

Qatar's fuel exports in the second quarter totaled 435 million riyals, marking a 17.7 percent drop from the first quarter. Aluminum exports similarly declined by 31 percent, reaching 302 million riyals. Essential and industrial oils, however, amounted to 427.6 million riyals, reflecting a year-on-year increase of 9 percent. Other commodities showed mixed results: steel exports fell by 20.8 percent, reaching 218.18 million riyals, while chemical fertilizers surged to 339.5 million riyals, a significant increase of 3,139 percent compared to the first quarter.

Meanwhile, in Oman, the Muscat Stock Exchange experienced a remarkable increase in trading value, reaching 21.2 million Omani riyals last week, compared to 9.3 million Omani riyals in the previous week, marking a 126 percent surge. This rise can be attributed to renewed investor interest in banking shares and other leading companies whose shares had previously declined. The number of executed deals on the Muscat Stock Exchange also saw a significant increase, rising by 90 percent to 3,064 deals compared to 1,606 deals in the previous week.

The market value of securities listed on the Muscat Stock Exchange recorded gains of about 20 million Omani riyals, rising to 24 billion and 534 million Omani riyals. Despite the overall positive trend, public joint-stock companies experienced a decline in their market value, impacted by the falling stock prices. Nevertheless, 19 securities managed to rise in price amidst this broader decline, highlighting a mixed market sentiment.

In contrast to Qatar and Oman, Saudi Arabia's foreign direct investment (FDI) has shown stagnation. Despite the ambitious Vision 2030 plan, spearheaded by Crown Prince Mohammed bin Salman, FDI inflows in the second quarter of 2024 were almost unchanged at 19.44 billion riyals ($5.18 billion) compared to 19.43 billion riyals in the same quarter last year. Net FDI inflows, however, fell to 11.7 billion riyals, down 7.5 percent from a year earlier. This data underscores the challenges Saudi Arabia faces in its effort to diversify its economy and reduce dependence on oil revenues.

Overall, these developments illustrate the diverse economic strategies and outcomes across the Middle East. While Qatar is seeing steady growth in private sector exports, with particular strengths in chemical fertilizers and industrial oils, Oman is benefiting from increased investor activity on its stock exchange. On the other hand, Saudi Arabia's efforts to attract foreign investment under its Vision 2030 plan seem to be experiencing some headwinds, as FDI remains relatively stagnant.

The Middle East continues to be a region of both opportunities and challenges. Countries in the region are adopting varied approaches to stimulate economic growth, ranging from boosting private sector participation in Qatar to enhancing shareholder value on the Muscat Stock Exchange in Oman. For Saudi Arabia, the road ahead involves overcoming hurdles to attract foreign investments that align with its long-term economic visions.

As these economies navigate their unique sets of challenges and opportunities, the international community will be closely watching the Middle East to see how these strategies unfold and impact global economic dynamics. From trade barriers and tariffs influencing Qatar's export models to investor sentiments driving Oman's stock market activities and Saudi Arabia's quest for diversification, these elements collectively paint a complex picture of a region in economic transition.