Operational Excellence: a Key Driver for Regional Growth

Rather than marking a cyclical rebound, 2026 is increasingly considered as a debt consolidation year, in which diversification-led growth ends up being more deeply ingrained in the area's financial design, reducing reliance on hydrocarbons and increasing strength to external shocks. Projections from major institutions broadly converge on a more powerful GCC development profile in 2026 than in 2025, supported by durable domestic need, 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 projected to rise 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) jobs international development relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain 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 actually continued to rise as federal governments broaden 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, improving credit conditions, and rising investment in technology and AI-related facilities.

ANSR July GCC PRs 50DR+

Key Steps for Operational Excellence in the GCC

Public-sector investment and reform remain main to sustaining this trend. Policy measures aimed at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a supportive role in 2026.

Oxford Economics expects Brent crude prices to fall below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. Nevertheless, oil supply is forecast to increase once again in the 2nd half of the year, with a complete relaxing of staying production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly encouraging of growth. Inflation is expected to stay low, with the IMF forecasting typical inflation of 2 percent throughout the region in 2026. Steady prices are helping preserve real household earnings and underpin customer spending, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.