Qatar To Be ‘Best Performing’ GCC Economy in 2026, 2027: World Bank

Qatar’s economy will clock a real GDP growth of 2.4% this year, 5.4% in 2026 and 7.6% in 2027, the World Bank said in its forecast released Tuesday.

Qatar will outperform the other five GCC countries in real GDP growth in 2026 and 2027, World Bank data reveal.

According to the World Bank forecast, Bahrain’s economy will grow 3.5% this year, 3% in 2026 and 2.8% in 2027.

For Kuwait, the World Bank forecasts a real GDP growth of 2.2% this year, and 2.7% in both 2026 and 2027.

Oman, the World Bank forecast says, will grow at 3% this year, 3.7% in 2026 and 4% in 2027.

According to the World Bank forecast, Saudi Arabia’s real GDP will grow at 2.8% this year, 4.5% in 2026 and 4.6% in 2027.

UAE, the World Bank forecast says, will grow at 4.6% this year and 4.9% in both 2026 and 2027.

The World Bank said growth in members of the Gulf Cooperation Council (GCC) is forecast to increase to 3.2% in 2025, 4.5% in 2026, and 4.8% in 2027.

The phase-out of oil production cuts is expected to lead to rising oil production, despite projected lower oil prices amid weakening global demand, it said.

Growth is also envisaged to continue to be boosted by expanding non-oil activity. Among the non-GCC oil exporters, activity in several countries is projected to be constrained by lower oil prices and weaker external demand.

In oil importers, growth is projected to pick up to 3.6% in 2025, 3.9% in 2026, and 4.3% in 2027, mostly owing to strengthening private consumption as inflation softens, a recovery in agricultural output, and assumed moderation of geopolitical tensions.

Despite the rise in global trade tensions and heightened uncertainty, activity in the Middle East and North Africa (MNA) has strengthened, in part reflecting increasing oil production, the World Bank noted.

In oil exporters, oil activity is recovering with the announcement in early April of the phase-out of the voluntary oil production cuts, while growth in non-oil activity has been resilient.

Among oil importers, the growth of private sector activity resumed in 2024, partly owing to reduced political tensions and macroeconomic stabilisation in several economies, including Egypt.

Besides, industrial activity, particularly in construction, has strengthened in Morocco.

In contrast, activity in West Bank and Gaza has been devastated, with significant destruction of physical capital and massive humanitarian costs in Gaza, as well as heightened tensions in West Bank.

Geopolitical tensions in the Middle East moderated somewhat following ceasefires in late 2024 and early 2025, but violence has resumed in Gaza and Lebanon, and the situation remains highly fragile and uncertain.

Tensions have remained high in other countries in fragile and conflict-affected situations (FCS).

Outlook: Growth in MNA is expected to pick up to 2.7% in 2025 and strengthen further to 3.7% in 2026 and 4.1% in 2027.

“This primarily reflects a gradual expansion of oil production that more than offsets the effects of lower oil prices, and despite the constraints on export activity from rising trade barriers.

“Growth forecasts are lower than projected in January, mainly due to the impact of increases in trade restrictions and uncertainty on investment and export activity,” the World Bank noted.