Will Strategic Research Define Dubai Industrial Growth?

Instead of marking a cyclical rebound, 2026 is progressively seen as a combination year, in which diversification-led development becomes more deeply ingrained in the region's financial model, minimizing reliance on hydrocarbons and increasing durability to external shocks. Projections from major organizations broadly assemble on a stronger GCC growth profile in 2026 than in 2025, supported by durable domestic need, continued non-oil expansion, and (to varying 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 development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region 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 local danger conditions stay consisted of and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Driving Regional Industrial Growth through Strategy

Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a helpful function in 2026.

Oxford Economics anticipates Brent crude costs to fall listed below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. Oil supply is anticipated to rise again in the 2nd half of the year, with a complete relaxing of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions across the GCC remain broadly supportive of development. Inflation is expected to stay low, with the IMF forecasting average inflation of 2 percent across the region in 2026. Stable costs are helping preserve real home earnings and underpin consumer costs, which Oxford Economics expects to grow by approximately 3.5 percent over 20262027.