Key Steps for Industrial Excellence in the GCC

Rather than marking a cyclical rebound, 2026 is significantly considered as a combination year, in which diversification-led growth becomes more deeply embedded in the region's economic model, lowering dependence on hydrocarbons and increasing strength to external shocks. Projections from significant institutions broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by resilient domestic demand, continued non-oil growth, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up 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, reflecting a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development easing 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 place the region 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 relatively high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

Data from the GCC Statistical Center show 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, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted 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 infrastructure.

ANSR July GCC PRs 50DR+

Essential Steps for Operational Excellence in the GCC

Public-sector financial investment and reform stay main to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, easing 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 development outlook, oil revenues are expected to play a supportive role in 2026.

Oxford Economics anticipates Brent crude prices to fall listed 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 full relaxing of remaining production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly supportive of development. Inflation is anticipated to stay low, with the IMF forecasting average inflation of 2 percent throughout the region in 2026. Steady prices are helping protect real household earnings and underpin consumer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.