Most Gulf Cooperation Council (GCC) countries are expected to see steady economic growth this year and next, driven by rising oil production, according to a recent Reuters report. Economists have also raised Saudi Arabia’s growth forecast, reflecting its strong comeback as the region’s largest economy.
After cutting oil output in early 2023, OPEC+ has shifted its strategy, now increasing production to around 2.7 million barrels per day to regain market share from the U.S. and other competitors. Although oil prices recently dropped to a five-month low, experts believe that higher sales volumes will keep revenues stable.
Saudi Arabia, the world’s biggest oil exporter, is forecast to grow 4.2% in 2025 and 4.1% in 2026. Economists suggest that if OPEC+ maintains control over production, it could strengthen its global pricing power and maximize long-term revenues.
Alongside boosting oil income, Gulf nations like Saudi Arabia, Qatar, and the UAE are investing heavily in tourism, technology, and artificial intelligence to reduce dependence on oil. However, a major fall in oil prices could limit funding for these new projects.
The UAE is predicted to be the fastest-growing Gulf economy this year with 4.6% growth, while Qatar is expected to take the lead by 2026 with a 5.2% expansion. Oman, Kuwait, and Bahrain will also see steady progress, with moderate growth and low inflation ranging between 0.7% and 2.4% across the region.
Overall, the Gulf economies remain resilient, supported by strong oil production and strategic investments aimed at building diverse, sustainable futures beyond hydrocarbons.
Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
