Looking to 2026: Economic Prospects and Policy Challenges in the GCC

Gulf Cooperation Council countries’ economies continue to grow robustly. But they will face challenges in sustaining this momentum in 2026 given uncertainties about the oil price outlook, the possibility of tightening global financial conditions on the back of elevated trade, and geopolitical uncertainty. Policymakers will need to manage these short-term risks to growth while keeping their eyes firmly on the longer-term goal of economic diversification away from hydrocarbons. 

AGSI was pleased to host a discussion on the recent International Monetary Fund report “Economic Prospects and Policy Challenges in the GCC Countries.” The discussion covered the IMF’s assessment of the economic situation in the Gulf states and the outlook for 2026 as well as how fiscal, monetary, financial sector, and structural policies can best be harnessed to deliver strong, sustained, and diversified growth in the future.   

The views represented herein are the author's or speaker's own and do not necessarily reflect the views of AGSI, its staff, or its board of directors.