In January, the International Monetary Fund said the war in Gaza has “exacerbated an already challenging environment for neighbouring economies and beyond.” 

Experts at the Web Summit in Qatar on Tuesday shared a positive economic outlook for the region’s development, pointing to attractive economies in the Middle East.

The discussion came during a panel on the role of Middle Eastern funds in the global economy with the participation of entrepreneurs and prominent industry experts. 

The speakers were Mohammed Al-Sowaidi, Chief Investment Officer for the Americas at the Qatar Investment Authority. Other speakers included Khaled Talhouni, managing partner at Nuwa Capital, and Noor Sweid, founder and managing partner at Global Ventures.

Commenting on the regional outlook, Sweid noted that the region is sitting in the middle of economic growth.

“We find ourselves in a position where you have a growing demographic, a rising population of 85% digital penetration and growing economies that are attractive to the whole world because everyone is looking for growth and we’re sitting in the middle of it,” Sweid told the panel.

The region’s economic outlook has been a point of concern and uncertainty for global bodies in light of the ongoing Israeli genocide in Gaza in addition to flare-ups in Lebanon and the vital Red Sea.

In January, the International Monetary Fund said the regional tensions have “exacerbated an already challenging environment for neighbouring economies and beyond.” 

The report had pointed to what it described as “the conflict” being among the factors affecting regional growth aside from oil production cuts and “continued necessary tight policy settings in several economies.”

The IMF said the combined factors have downgraded the region’s projected growth in 2024 by 0.5 percentage point to reach 2.9 percent. The drop comes after an “already weak growth of 2.0 percent” last year.

“The outlook for the MENA region is highly uncertain, and downside risks are resurgent. An escalation or spread of the conflict beyond Gaza and Israel, as well as an intensification of the disruptions in the Red Sea, could have a severe economic impact, including on trade and tourism,” the IMF said in January.

The report highlighted the importance of “structural reforms” to boost economic growth.

Meanwhile, the IMF projected Qatar’s economy to grow in 2024 at 1.9 percent. 

In seeking to encourage regional and international economic growth, Qatar announced a $1 billion Qatar Investment Authority investment in international and regional venture capital funds on Monday.

The major investment came under the directives of Qatar’s Amir Sheikh Tamim bin Hamad Al Thani to support local and regional entrepreneurs.