Industrial Excellence: a Strategic Driver for Regional Success

Rather than marking a cyclical rebound, 2026 is significantly deemed a consolidation year, in which diversification-led growth ends up being more deeply embedded in the region's financial model, minimizing reliance on hydrocarbons and increasing strength to external shocks. Forecasts from major organizations broadly converge on a more powerful GCC development profile in 2026 than in 2025, supported by resilient domestic need, continued non-oil expansion, and (to varying 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 growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects global growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little 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 remain consisted of and reform momentum holds.

Information 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 rise as federal governments broaden investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Can Strategic Research Define Middle East Corporate Success?

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures aimed at attracting foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful role in 2026.

Oxford Economics anticipates Brent crude costs to fall below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is anticipated to rise again in the second half of the year, with a full unwinding of staying production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC stay broadly encouraging of development. Inflation is expected to stay low, with the IMF forecasting typical inflation of 2 percent throughout the area in 2026. Stable prices are helping preserve real home incomes and underpin customer spending, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.