How to Maintain a Leading Edge in Dubai

Instead of marking a cyclical rebound, 2026 is progressively seen as a combination year, in which diversification-led growth becomes more deeply embedded in the region's economic model, lowering reliance on hydrocarbons and increasing resilience to external shocks. Projections from major institutions broadly converge on a more powerful GCC development profile in 2026 than in 2025, supported by durable domestic demand, 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 predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development reducing 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 expansion would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay included and reform momentum holds.

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

ANSR July GCC PRs 50DR+

How to Maintain a Leading Advantage in Dubai

Public-sector investment and reform remain central to sustaining this pattern. Policy steps intended at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging role in 2026.

Oxford Economics expects Brent crude rates to fall listed below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is forecast to increase again in the 2nd half of the year, with a full loosening up of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC remain broadly supportive of growth. Inflation is anticipated to remain low, with the IMF forecasting typical inflation of 2 percent across the region in 2026. Steady costs are assisting preserve real family earnings and underpin customer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.