Will Strategic Research Define Dubai Industrial Growth?

Instead of marking a cyclical rebound, 2026 is increasingly considered as a combination year, in which diversification-led growth ends up being more deeply embedded in the region's financial model, decreasing reliance on hydrocarbons and increasing durability to external shocks. Projections from significant institutions broadly converge on a more powerful GCC growth profile in 2026 than in 2025, supported by resistant domestic need, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF 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 toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth easing 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 place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, 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 increasing investment in innovation and AI-related facilities.

ANSR July GCC PRs 50DR+

Analysing New Market Data for Future Growth

Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a supportive role in 2026.

Oxford Economics expects Brent crude costs to fall below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Nevertheless, oil supply is forecast to increase again in the second half of the year, with a full loosening up of remaining 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 across the area in 2026. Stable costs are assisting protect genuine family earnings and underpin customer spending, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.