World Bank expects GCC countries to see economic growth of 4.2 percent in 2025-2026

(MENAFN) The World Bank expects the Gulf Cooperation Council (GCC) countries to experience strong economic growth of 4.2 percent over the next two years, primarily driven by the non-oil sector. According to the World Bank’s report on recent economic developments in the Gulf, released in the fall of 2024, the non-oil sector continues to be the main engine of growth in the region. It achieved a robust 3.7 percent growth, largely due to ongoing efforts at economic diversification and ambitious reforms across the GCC.

For the UAE, the World Bank forecasts a 3.3 percent growth in 2024, largely fueled by a strong 4.1 percent expansion in the non-oil sector. This growth is supported by the strong performance of various sectors, such as tourism, real estate, construction, transport, and industry. In the longer term, the UAE’s GDP growth is expected to rise to 4.1 percent in both 2025 and 2026, driven in part by a recovery in oil production.

The report highlights the Gulf region’s remarkable resilience in the face of global challenges, noting that the region has steadily advanced in its economic diversification efforts. This resilience has been crucial in maintaining stable growth despite external pressures. The World Bank emphasizes the importance of continued prudent economic policies to ensure sustainable growth moving forward.

Safaa El Tayeb El Kogaly, the World Bank Regional Director for the GCC, noted that the region’s ability to adapt and pursue economic reforms has been impressive. He stressed that governments in the GCC must continue their efforts to implement sound economic policies that will secure long-term prosperity and stability in the region.

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