Many people will breathe a sigh of relief to see the back of 2018. While there has been a turnaround in the outlook for the region, few have yet to see any improvement on the ground.

The recovery in oil prices since 2017, coupled with tough fiscal controls, have eased the pressure on government coffers, and finance ministries can be proud that they have prevented deficits from ballooning out of control. But the consequences have been painful.

Project contract awards in the GCC in 2018 are likely to be about 20 per cent down on 2017, and little over half the levels of 2014 and 2015. Contractors are being buffeted by increased competition, delayed payments and a rise in disputes. Property prices have fallen, while the introduction of VAT and reductions in subsidies have added to the cost of living.

The outlook for 2019 is much brighter.

The IMF has raised its growth forecast for the region. The UAE and Saudi Arabia have introduced stimulus spending and indicated an increase in government spending in 2019. Oil companies have unveiled long-term investment plans on strategic upstream and downstream programmes. And Egypt and Iraq are pushing ahead with infrastructure projects.

But while the green shoots of recovery are visible, clouds can also be seen on the horizon. Plans envisage increased private investment in new companies, industries and services. Yet delays in legislation and reforms aimed at supporting investment risk eroding confidence. As does rising political risk. The region is well set to flourish in energy, infrastructure, tourism, finance and technology. But investors want to see a greater commitment to reform.

That is what governments are tasked with delivering in 2019.

MEED's 2019 Yearbook will be published in print on Tuesday 18 December