Accelerating Regional Industrial Expansion through Innovation

Instead of marking a cyclical rebound, 2026 is increasingly seen as a consolidation year, in which diversification-led growth becomes more deeply ingrained in the region's financial design, minimizing reliance on hydrocarbons and increasing strength to external shocks. Forecasts from major organizations broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by resistant domestic demand, continued non-oil growth, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase 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) jobs worldwide development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in innovation and AI-related facilities.

ANSR July GCC PRs 50DR+

Accelerating Dubai Industrial Growth through Strategy

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging function in 2026.

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

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly helpful of growth. Inflation is expected to remain low, with the IMF forecasting typical inflation of 2 percent throughout the area in 2026. Steady costs are helping protect real home earnings and underpin customer costs, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.