Industrial Excellence: a Key Pillar for Regional Success

Instead of marking a cyclical rebound, 2026 is progressively deemed a debt consolidation year, in which diversification-led growth becomes more deeply embedded in the region's financial model, minimizing dependence on hydrocarbons and increasing durability to external shocks. Projections from major institutions broadly converge on a more powerful GCC development profile in 2026 than in 2025, supported by durable domestic need, continued non-oil growth, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent growth in 2025, accelerating 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, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving 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 contrast, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.

ANSR July GCC PRs 50DR+

The Strategic Benefits of Advanced Market Research

Public-sector investment and reform stay main to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging function in 2026.

Oxford Economics expects Brent crude rates to fall below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. Oil supply is forecast to rise again in the second half of the year, with a complete loosening up of remaining 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. Steady costs are helping preserve genuine family earnings and underpin customer costs, which Oxford Economics expects to grow by an average of 3.5 percent over 20262027.