Driving Dubai Industrial Growth through Strategy

Instead of marking a cyclical rebound, 2026 is increasingly considered as a combination year, in which diversification-led development becomes more deeply embedded in the region's economic model, reducing reliance on hydrocarbons and increasing strength to external shocks. Forecasts from significant institutions broadly assemble on a stronger GCC development 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+

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) projects global growth alleviating 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 comparison, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

Data 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 governments expand financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.

ANSR July GCC PRs 50DR+

Driving Dubai Industrial Expansion through Strategy

Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful function in 2026.

Oxford Economics anticipates Brent crude rates to fall below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. However, oil supply is anticipated to increase once again in the second half of the year, with a complete unwinding of staying production caps likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly encouraging of development. Inflation is expected to remain low, with the IMF forecasting average inflation of 2 percent throughout the region in 2026. Stable costs are assisting preserve genuine family incomes and underpin consumer spending, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.