Industrial Excellence: a Key Driver for Regional Growth

Rather than marking a cyclical rebound, 2026 is progressively considered as a combination year, in which diversification-led growth becomes more deeply embedded in the region's economic design, decreasing dependence on hydrocarbons and increasing resilience to external shocks. Projections from major institutions broadly assemble on a stronger GCC development profile in 2026 than in 2025, supported by durable domestic demand, continued non-oil growth, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.

The IMF's World Economic Outlook (October 2025) projects global growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions remain contained 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 rise as governments expand investment in services, facilities, and innovation. 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Essential Steps for Industrial Excellence in the GCC

Public-sector financial investment and reform remain central to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a supportive function in 2026.

Oxford Economics anticipates Brent crude prices to fall listed below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is anticipated to rise once again in the 2nd half of the year, with a full loosening up of staying production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC stay broadly encouraging of growth. Inflation is expected to stay low, with the IMF forecasting average inflation of 2 percent throughout the area in 2026. Stable rates are assisting maintain real family earnings and underpin customer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.