Will Strategic Research Drive Dubai Industrial Growth?

Rather than marking a cyclical rebound, 2026 is significantly deemed a consolidation year, in which diversification-led development ends up being more deeply embedded in the region's economic model, minimizing dependence on hydrocarbons and increasing durability to external shocks. Projections from significant organizations broadly assemble on a stronger GCC growth profile in 2026 than in 2025, supported by resilient domestic need, continued non-oil expansion, and (to differing 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 development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects global growth reducing 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 contrast, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained 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 rise as federal governments expand financial 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, improving credit conditions, and rising investment in technology and AI-related facilities.

ANSR July GCC PRs 50DR+

Analysing New GCC Data for Future Growth

Public-sector investment and reform stay main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging role in 2026.

Oxford Economics anticipates Brent crude prices to fall listed below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. However, oil supply is anticipated to rise again in the 2nd half of the year, with a complete loosening up of staying production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC remain broadly encouraging of growth. Inflation is expected to stay low, with the IMF forecasting average inflation of 2 percent across the region in 2026. Steady rates are helping maintain genuine household earnings and underpin consumer costs, which Oxford Economics expects to grow by approximately 3.5 percent over 20262027.