Prime Highlights:
- GCC economies are expected to stay strong in 2026, supported by healthy domestic demand, stable global conditions, and ongoing economic diversification.
- Qatar is projected to lead the region, driven by higher gas production and exports.
Key Facts:
- Real GDP across the GCC is forecast to grow 4% in 2026, up from 4% this year.
- Non-oil activities now account for 2% of total GDP, showing the region’s shift away from oil dependence.
Background:
GCC economies are expected to remain strong in 2026, supported by good domestic demand, stable global conditions, and ongoing economic diversification, says Oxford Economics.
In its latest report, the research firm said real GDP across the GCC is forecast to grow by 4.4 percent in 2026, up from an estimated 4 percent this year. The forecast aligns closely with the World Bank’s December outlook, which expects GCC growth to reach 4.5 percent in 2026 following 3.2 percent in 2025.
The International Monetary Fund has also shared a positive outlook, predicting average economic growth of 3.3 percent across the GCC in 2025, up from 1.7 percent in 2024. Oxford Economics said growth this year is expected to be stronger than earlier forecasts, supported by solid non-oil activity and a gradual increase in oil production.
Official data further underlines the region’s positive momentum. The GCC Statistical Center reported that the bloc’s economies grew by 3 percent in the first half of this year, with combined GDP reaching $588.1 billion, up from $570.9 billion in the same period last year. Non-oil activities now make up 73.2 percent of total GDP, showing the region’s steady move away from reliance on oil.
Consumer spending is expected to play a major role in economic growth in 2026. Low inflation, high employment, and rising incomes are boosting demand in the region. The IMF expects inflation to stay around 2 percent through 2026, keeping buying power and the economy stable.
Oil production may slow early in 2026 due to OPEC+ limits, but is expected to rise later. Qatar is likely to lead the region with higher gas output and exports.
The GCC enters 2026 with a stable economy and increasing confidence in its future.
