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Rather than marking a cyclical rebound, 2026 is progressively viewed as a combination year, in which diversification-led development ends up being more deeply ingrained in the area's financial model, minimizing dependence on hydrocarbons and increasing strength to external shocks. Forecasts from major institutions broadly converge on a stronger GCC development profile in 2026 than in 2025, supported by durable domestic demand, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.
Oman's New Regulatory Landscape: What to Expect NextThe IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating 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 growth would put 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 local risk conditions stay consisted of and reform momentum holds.
Information 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 increase as federal governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures targeted at bring in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a supportive 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. Oil supply is forecast to increase again in the second half of the year, with a full unwinding of remaining production caps likely by mid-2027.
Macroeconomic conditions throughout the GCC stay broadly supportive of development. Inflation is expected to remain low, with the IMF forecasting average inflation of 2 percent throughout the region in 2026. Steady rates are helping preserve genuine home incomes and underpin customer spending, which Oxford Economics expects to grow by approximately 3.5 percent over 20262027.
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