Driving Dubai Industrial Growth through Innovation

Rather than marking a cyclical rebound, 2026 is increasingly viewed as a combination year, in which diversification-led growth becomes more deeply embedded in the area's economic design, lowering dependence on hydrocarbons and increasing resilience to external shocks. Forecasts from significant organizations broadly converge on a stronger GCC growth 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 development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already 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 throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related facilities.

ANSR July GCC PRs 50DR+

Emerging Strategic Trends Defining the 2026 GCC Economy

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures intended at attracting foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a helpful function in 2026.

Oxford Economics expects Brent crude prices to fall listed below USD 60 per barrel in early 2026, restricting the near-term contribution of oil extraction to GDP. Oil supply is anticipated to increase once again in the second half of the year, with a complete loosening up of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly helpful of development. Inflation is anticipated to remain low, with the IMF forecasting average inflation of 2 percent throughout the area in 2026. Steady rates are helping maintain genuine home incomes and underpin customer costs, which Oxford Economics anticipates to grow by an average of 3.5 percent over 20262027.