Industrial Excellence: a Strategic Pillar for 2026 Growth

Instead of marking a cyclical rebound, 2026 is increasingly deemed a consolidation year, in which diversification-led development ends up being more deeply embedded in the region's economic design, decreasing dependence on hydrocarbons and increasing strength to external shocks. Projections from major organizations broadly converge on a more powerful GCC development profile in 2026 than in 2025, supported by resistant domestic need, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development in 2025, speeding up 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 overall conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing to 3.1 percent in 2026, with innovative 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 a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout 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 facilities.

ANSR July GCC PRs 50DR+

Accelerating Regional Industrial Growth through Innovation

Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a supportive role in 2026.

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

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC remain broadly encouraging of growth. Inflation is expected to remain low, with the IMF forecasting typical inflation of 2 percent across the area in 2026. Stable rates are helping maintain real household earnings and underpin customer spending, which Oxford Economics expects to grow by approximately 3.5 percent over 20262027.