The six-nation GCC bloc is forecast to grow 8.1% in 2027 as energy trade routes normalise and tourism and business confidence rebuild, according to a new Economic Insight report from ICAEW and Oxford Economics.
The recovery follows a sharp 2026 contraction driven by regional conflict, with oil sector output expected to fall 14.5% this year before rebounding 23.5% in 2027 from a depressed base.
Saudi Arabia and Oman are projected to be the least affected economies in 2026, both continuing to expand, while Saudi Arabia and the UAE have rerouted some exports through alternative pipelines to cushion the impact. Brent crude is forecast to average USD 90 per barrel for 2026. Non-energy GCC sectors are expected to contract 1.1% this year before recovering, while inbound tourist arrivals could fall around 30%, translating into tens of billions of dollars in lost spending. GCC sovereign credit profiles are expected to remain resilient.
Gulf Economist Staff Writer