GCC Economies to Grow Strongly on Non-Oil Sectors, Says World Bank
The World Bank expects the economies of the Gulf Cooperation Council (GCC) countries to grow strongly in the coming years. According to its latest report, GCC economic growth is forecast to reach 4.4% in 2026 and 4.6% in 2027. This growth will be mainly driven by strong performance in non-oil sectors, such as services, construction, tourism, and manufacturing.
Among GCC countries, Qatar is expected to record the fastest growth. The World Bank predicts Qatar’s economy will expand by 5.3% in 2026 and 6.8% in 2027, compared with an estimated 2.8% growth in 2025. This growth is supported by increased gas production and rising non-oil activities.
The United Arab Emirates is also expected to perform well. Its economy is forecast to grow by 5% in 2026 and 5.1% in 2027, following an estimated growth of 4.8% in 2025. Strong tourism, trade, and investment continue to support the UAE’s economic expansion.
Saudi Arabia, the largest economy in the GCC, is expected to grow by 4.3% in 2026 and 4.4% in 2027, up from an estimated 3.8% growth in 2025. Non-oil reforms, large infrastructure projects, and higher oil production are helping support economic growth.
In Oman, economic growth is forecast to reach 3.6% in 2026 and 4% in 2027, compared with an estimated 3.1% in 2025. Improved fiscal management and growth in non-oil sectors are key drivers.
Bahrain’s economy is expected to grow by 3.1% in 2026 and 2.9% in 2027, slightly slower than the estimated 3.5% growth in 2025. Growth is moderating as government spending becomes more controlled.
Kuwait is projected to grow by 2.6% in 2026 and 2.5% in 2027, slightly lower than the estimated 2.7% growth in 2025. Kuwait recently emerged from two years of economic contraction, supported by better oil output and improved economic conditions.
Wider Regional Outlook
The World Bank said that despite rising geopolitical tensions in the Middle East and the ongoing humanitarian crisis in Gaza, economic activity in the region has improved. Higher oil production and strong non-oil growth—especially in GCC countries—have helped drive recovery.
For oil-importing countries in the region, easing financial controls in Egypt, improved political stability in Lebanon, and favorable weather supporting agriculture in Morocco and Tunisia have helped boost growth. Overall growth for oil-importing countries is expected to reach around 4%, though results will vary by country.
Egypt is expected to benefit from stronger exports and rising private-sector demand. However, Morocco and Tunisia may see slower growth due to weaker agricultural output and slower manufacturing activity.
For non-GCC oil-exporting countries, economic growth is expected to remain low at around 2% per year in 2026 and 2027. Tough global trade conditions and reduced government spending are likely to limit economic activity.
Overall, the World Bank says non-oil development will remain a key factor supporting growth across the GCC and wider Middle East region.
Published: 15th January 2026
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