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Instead of marking a cyclical rebound, 2026 is increasingly considered as a debt consolidation year, in which diversification-led development ends up being more deeply embedded in the area's economic model, reducing dependence on hydrocarbons and increasing durability to external shocks. Projections from major organizations broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by durable domestic need, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Exploring New Service Frontiers Beyond Riyadh and JeddahInformation from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy steps targeted at attracting foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.
Oxford Economics anticipates Brent crude costs to fall listed below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is forecast to increase once again in the second half of the year, with a complete loosening up of remaining production caps likely by mid-2027.
Macroeconomic conditions across the GCC stay broadly supportive of growth. Inflation is expected to remain low, with the IMF forecasting typical inflation of 2 percent across the region in 2026. Steady costs are helping protect real household earnings and underpin consumer costs, which Oxford Economics expects to grow by an average of 3.5 percent over 20262027.
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