GCC Economic Growth Set to Accelerate to 4.4% by 2026

The economic growth within the Gulf Cooperation Council (GCC) is projected to rise significantly, accelerating from 2.2% in 2024 to 3.5% in 2025, and reaching 4.4% by 2026. This growth trajectory is largely attributed to the gradual easing of OPEC+ production cuts and robust expansion in the non-oil sector.

Insights from the MENA Forum

During his keynote address at the MENA Forum on Insolvency and Restructuring Reform held in Doha, Sandeep Mahajan, the World Bank Group’s Mena Regional Practice Director, outlined the region’s economic outlook. He emphasized both the immediate potential for growth and the longer-term challenges, particularly those related to employment and demographic changes.

Mahajan highlighted the MENA region’s vast potential, stating that its youthful and dynamic markets offer significant opportunities. He noted, “The geographic position of the MENA region makes it a bridge between continents, cultures, and opportunities. Yet, realizing this potential will require bold choices and shared commitments.”

Discussing the near-term economic outlook, Mahajan remarked, “Encouraging signs and significant uncertainties coexist. Recent months have shown improved growth prospects due to stronger international trade and more accommodating financial conditions.” He added that global and regional forecasts for 2025 have been revised upward, indicating resilience and adaptability.

Despite this positive shift, Mahajan warned that global growth in 2025 is expected to be approximately half a percentage point lower than the previous year, reflecting a fragile momentum.

Inflation and Reforms in the Region

For the GCC, the average economic growth is forecasted at 2.8% for 2025 and 3.3% for 2026, compared to 2.4% in 2024. Fortunately, inflation remains manageable, with the median rate projected at 2.3% for both 2025 and 2026, thanks to declining global commodity prices and stable exchange rates.

Mahajan pointed out examples of leadership and reform across the region that are transforming the business landscape. He noted that Qatar has made significant strides with new legislation aimed at improving investment policies, leading to expedited procedures and modern case management. This signifies Qatar’s commitment to establishing a transparent and efficient justice system.

He also praised other countries in the region, from Saudi Arabia‘s leadership initiatives to Egypt‘s inclusive approach, and the growing determination seen in Morocco, Jordan, and Pakistan. “This region is not just keeping pace with the world; it is shaping it with renewed leadership and innovation,” Mahajan stated.

The two-day forum focused on enhancing the capacity of insolvency practitioners through effective regulatory frameworks, licensing, and supervision. It also explored the role of technology and artificial intelligence in improving legal and regulatory efficiency, alongside discussions on the interplay between laws and insolvency legislation.

A workshop dedicated to preventive insolvency tools addressed advanced global restructuring strategies, including early-warning mechanisms and pre-insolvency frameworks, which are crucial for fostering a resilient economic environment.

Overall, the GCC’s accelerating growth, supported by strategic reforms and a focus on non-oil sectors, presents an optimistic outlook for the region in the coming years.