Industrial Excellence: a Strategic Pillar for Regional Growth

Instead of marking a cyclical rebound, 2026 is progressively considered as a consolidation year, in which diversification-led development becomes more deeply embedded in the area's economic model, minimizing reliance on hydrocarbons and increasing strength to external shocks. Forecasts from major institutions broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by resilient domestic need, continued non-oil expansion, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put 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 included and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, 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 increasing financial investment in innovation and AI-related facilities.

ANSR July GCC PRs 50DR+

Accelerating Dubai Industrial Expansion through Innovation

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a helpful function in 2026.

Oxford Economics anticipates Brent crude costs to fall below USD 60 per barrel in early 2026, restricting 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 full unwinding of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly supportive of growth. Inflation is anticipated to remain low, with the IMF forecasting average inflation of 2 percent throughout the area in 2026. Stable costs are assisting protect genuine household earnings and underpin consumer spending, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.