Driving Regional Industrial Growth through Strategy

Rather than marking a cyclical rebound, 2026 is progressively considered as a combination year, in which diversification-led development becomes more deeply embedded in the region's financial model, minimizing reliance on hydrocarbons and increasing durability to external shocks. Forecasts from major organizations broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by durable domestic demand, continued non-oil expansion, 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 development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth 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 expansion would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand financial investment in services, infrastructure, and technology. 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 increasing investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Accelerating Dubai Industrial Expansion through Innovation

Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps intended at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging function 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. Oil supply is forecast to increase once again in the second half of the year, with a full unwinding of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly encouraging of growth. Inflation is anticipated to stay low, with the IMF forecasting typical inflation of 2 percent throughout the region in 2026. Stable prices are helping protect real home earnings and underpin consumer spending, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.