How to Maintain a Competitive Advantage in 2026

Instead of marking a cyclical rebound, 2026 is increasingly deemed a consolidation year, in which diversification-led development becomes more deeply ingrained in the area's financial model, lowering dependence on hydrocarbons and increasing durability to external shocks. Projections from significant institutions broadly converge on a stronger GCC development profile in 2026 than in 2025, supported by resilient domestic demand, continued non-oil expansion, and (to varying degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide development reducing to 3.1 percent in 2026, with advanced 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 region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand investment in services, infrastructure, and innovation. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

ANSR July GCC PRs 50DR+

Reviewing New Market Data for Strategic Growth

Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on attracting foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues 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. Oil supply is anticipated to rise once 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 helpful of growth. Inflation is expected to remain low, with the IMF forecasting average inflation of 2 percent throughout the area in 2026. Stable prices are helping maintain genuine family earnings and underpin consumer spending, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.