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Rather than marking a cyclical rebound, 2026 is significantly considered as a debt consolidation year, in which diversification-led development becomes more deeply ingrained in the region's economic model, lowering reliance on hydrocarbons and increasing strength to external shocks. Forecasts from major organizations broadly converge on a stronger GCC growth profile in 2026 than in 2025, supported by durable domestic need, continued non-oil growth, and (to varying degrees) a firmer hydrocarbon contribution.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The Benefits of Industrial Growth in the GCCThe IMF's World Economic Outlook (October 2025) tasks international growth reducing to 3.1 percent in 2026, with sophisticated 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 put the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local risk conditions remain contained 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 continued to rise as governments expand investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected 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.
Public-sector financial investment and reform stay central to sustaining this trend. Policy steps aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
Oxford Economics expects 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 forecast to rise once again in the 2nd half of the year, with a full unwinding of staying production caps most likely by mid-2027.
Macroeconomic conditions across the GCC remain broadly encouraging of growth. Inflation is anticipated to remain low, with the IMF forecasting typical inflation of 2 percent throughout the area in 2026. Steady rates are assisting protect real family incomes and underpin consumer costs, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.
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