GCC economic growth projected to accelerate by 4.4% in 2026

Doha: The GCC countries account for 40% of the region s output and its growth is projected to accelerate from 2.2% in 2024 to 3.5% this year and 4.4%...

Doha: The GCC countries account for 40% of the region’s output and its growth is projected to accelerate from 2.2% in 2024 to 3.5% this year and 4.4% in 2026. This will be driven by gradual phasing out of OPEC plus production cuts and strong non-oil sector expansion.

Delivering the keynote address during the MENA Forum on Insolvency and Restructuring Reform, yesterday Sandeep Mahajan, World Bank Group Mena Regional Practice Director discussed the near-term outlook for the region, the longer-term challenges, particularly those linked to jobs and demographics. He also elaborated the role of the private sector and the importance of insolvency systems.

The MENA region holds tremendous potential and its people are talented and entrepreneurial. Its markets are young and dynamic and the geographic position makes it a bridge between continents, cultures, and opportunities. Yet, potential itself alone is not enough, realizing it will require bold choices and shared commitments, he said.

Explaining the near-term outlook, Mahajan said “As we look ahead, the economic outlook for the MENA region presents both encouraging signs and significant uncertainties. On a positive note, growth prospects have improved in recent months, reflecting stronger international trade, milder-than-expected tariff increases, and more accommodating financial conditions.”

Global and regional forecasts at the World Bank for 2025 have been revised upward since last spring, a welcome sign that resilience and adaptability are at work.