The World Bank expects Gulf economies to grow by 4.5% in 2026

A new World Bank report revealed today that economic growth rates in the Gulf countries will double over the medium term, reaching 3.2% in 2025 and 4.5% in 2026, as a result of the rollback of the OPEC+ oil production cut policy, coupled with strong expansion in the non-oil sectors.

The report, titled “Smart Spending, Stronger Economic Outcomes: Fiscal Policies for the Prosperity of the GCC,” indicated that the region witnessed economic growth of 1.7% in 2024, compared to 0.3% in 2023, driven by strong growth in the non-oil sector and a demonstration of its resilience, increasing by 3.7%. The main contributions to growth came from private consumption, investment, and structural reforms implemented in the Gulf countries, according to the World Bank’s Gulf Economic Update. The World Bank warned of the challenges associated with the uncertainty surrounding global trade, as the risk of a global economic slowdown continues to have negative impacts on the region. The World Bank recommended accelerating the pace of reforms aimed at diversifying economic activity and boosting regional trade to mitigate these risks.