Industrial Excellence: a Strategic Pillar for Regional Growth

Rather than marking a cyclical rebound, 2026 is increasingly considered as a consolidation year, in which diversification-led growth becomes more deeply ingrained in the area's economic design, reducing reliance on hydrocarbons and increasing resilience 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 demand, continued non-oil expansion, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth 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 put the area 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 relatively high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

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

ANSR July GCC PRs 50DR+

Accelerating Dubai Industrial Expansion through Innovation

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play an encouraging role in 2026.

Oxford Economics expects 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 rise 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 across the GCC stay broadly encouraging of development. Inflation is anticipated to remain low, with the IMF forecasting average inflation of 2 percent throughout the region in 2026. Steady costs are assisting preserve genuine family incomes and underpin customer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.