Driving Dubai Industrial Expansion through Strategy

Rather than marking a cyclical rebound, 2026 is increasingly viewed as a debt consolidation year, in which diversification-led development becomes more deeply embedded in the area's financial design, minimizing dependence on hydrocarbons and increasing strength to external shocks. Forecasts from significant organizations broadly assemble on a more powerful GCC growth profile in 2026 than in 2025, supported by durable domestic demand, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development 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, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 expansion would position the area 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 threat conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as governments expand financial investment in services, infrastructure, 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 rising investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Navigating the Next Middle East Business Landscape

Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging role in 2026.

Oxford Economics anticipates Brent crude costs to fall below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is anticipated to increase again in the second half of the year, with a full unwinding of remaining production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly supportive of growth. Inflation is anticipated to remain low, with the IMF forecasting typical inflation of 2 percent across the area in 2026. Steady rates are assisting preserve real family earnings and underpin customer spending, which Oxford Economics expects to grow by approximately 3.5 percent over 20262027.