Driving Dubai Industrial Expansion through Innovation

Instead of marking a cyclical rebound, 2026 is significantly deemed a debt consolidation year, in which diversification-led development becomes more deeply embedded in the area's financial model, reducing dependence on hydrocarbons and increasing resilience to external shocks. Forecasts from major institutions broadly converge on a stronger GCC development profile in 2026 than in 2025, supported by durable domestic need, 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 growth projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks global development relieving 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 comparison, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably 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 continued to increase as governments expand financial 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 increasing investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Operational Excellence: a Key Driver for 2026 Success

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a helpful function 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. However, oil supply is anticipated to rise once again in the 2nd half of the year, with a full loosening up of remaining production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC remain broadly encouraging of growth. Inflation is anticipated to remain low, with the IMF forecasting average inflation of 2 percent across the area in 2026. Steady costs are helping maintain real family earnings and underpin consumer spending, which Oxford Economics expects to grow by an average of 3.5 percent over 20262027.