Accelerating Dubai Industrial Expansion through Innovation

Rather than marking a cyclical rebound, 2026 is significantly deemed a consolidation year, in which diversification-led growth ends up being more deeply ingrained in the region's economic model, reducing dependence on hydrocarbons and increasing durability to external shocks. Forecasts from significant institutions broadly assemble on a stronger GCC growth profile in 2026 than in 2025, supported by resistant domestic need, continued non-oil expansion, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related infrastructure.

ANSR July GCC PRs 50DR+

How to Optimise Regional Operations in 2026

Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a supportive role in 2026.

Oxford Economics anticipates Brent crude costs to fall below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. Nevertheless, oil supply is anticipated to rise again in the second half of the year, with a complete loosening up of staying production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly helpful of growth. Inflation is anticipated to remain low, with the IMF forecasting average inflation of 2 percent throughout the region in 2026. Stable prices are helping preserve real household incomes and underpin consumer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.