Driving Dubai Industrial Growth through Strategy

Instead of marking a cyclical rebound, 2026 is significantly considered as a consolidation year, in which diversification-led development becomes more deeply ingrained in the area's financial design, reducing dependence on hydrocarbons and increasing strength to external shocks. Forecasts from major organizations broadly assemble on a stronger GCC growth profile in 2026 than in 2025, supported by resistant domestic demand, continued non-oil growth, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs international development 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 contrast, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions stay included and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.

ANSR July GCC PRs 50DR+

Navigating the Next Middle East Business Landscape

Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive role in 2026.

Oxford Economics expects Brent crude costs 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 increase again in the 2nd half of the year, with a full unwinding of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly supportive of development. Inflation is expected to stay low, with the IMF forecasting typical inflation of 2 percent across the region in 2026. Stable costs are assisting maintain genuine family incomes and underpin customer spending, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.