Emerging Developments in the 2026 Middle East Economy

The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth 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.

ANSR July GCC PRs 50DR+

The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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 regional danger conditions stay included and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as governments broaden financial investment in services, infrastructure, 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial 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 dominate the growth outlook, oil revenues are anticipated to play an encouraging role in 2026.