REGIONAL REPORT
Image: Shutterstock. com.
Kuwait: Economic growth was expected to recover significantly and reach 2.2 % in 2025, compared to-2.9 % in 2024 and-3.6 % in 2023. The phase out of OPEC + production caps and the expansion of non-hydrocarbon sectors supported by credit growth and large infrastructure projects explains this positive outlook. Over 2026-2027, economic growth was predicted by the World Bank to remain stable at 2.7 %, while long-term economic outlooks hinge on the successful implementation of structural reforms and diversification efforts. projected to experience increasing fiscal deficits in 2025. The report finds that government spending in the GCC region has effectively stabilised economies, especially during recessionary episodes. The findings show that a 1-unit increase in fiscal spending can boost non-hydrocarbon output by 0.1-0.45 units in the region. The report also finds a marginal impact of government investment on non-hydrocarbon output— a 0.07 per cent change in potential output for a one-time percentage point increase in investment.
The report also showcases Oman’ s fiscal consolidation journey as a noteworthy example of effective economic reform and responsible fiscal management. It highlights the challenges Oman has faced due to oil dependency, the measures it implemented to restore fiscal balance and the encouraging outcomes of these reforms. Under its Medium- Term Fiscal Plan 2020-2024, Oman introduced wide-ranging reforms to diversify revenue sources, improve expenditure efficiency and prudently managing hydrocarbon windfalls.“ Oman’ s reforms have yielded tangible results since 2022, with a marked improvement in its fiscal position and a significant reduction in public debt,” said the report.
GCC country outlook
In June 2025, the World Bank outlined the following predictions for GCC countries.
Bahrain: Growth was predicted to stabilise at 3.5 % in 2025 after two years of decline. The improvement relative to 2024( 3 % growth) is driven by the completion of BAPCO refinery upgrades and robust non-hydrocarbon growth in sectors supported by Bahrain’ s Economic Vision 2030, including infrastructure, logistics, financial technology and tourism. In 2026-2027, overall growth was expected to average 2.9 %, thanks to continued non-hydrocarbon growth and the expansion of the Sitra oil refinery.
Editor’ s Note: The IMF commented, in November 2025, that Bahrain’ s real GDP grew at 2.6 per cent in 2024. It anticipates growth to rise to 2.9 per cent in 2025 and to 3.3 per cent in 2026, with the completion of refinery upgrades and robust services, particularly in tourism and the financial sector. Over the medium-term, real GDP is expected to grow at around 3 per cent, driven by the non-hydrocarbon sector, which is projected to account for nearly 90 per cent of the economy by 2030.
Above: A mosque in Abu Dhabi. Right: The Burj Khalifa
Image: Saj Shafique, Unsplash.
Oman: Growth was expected to gradually accelerate to 3 % in 2025( compared to 1.7 % in 2024), 3.7 % in 2026 and 4 % in 2027. The rebound in oil production( 2.1 % oil GDP growth in 2025), along with solid non-hydrocarbon growth( 3.4 %) driven by robust growth in construction, manufacturing and services was expected to drive these sustained improvements in growth prospects.
Qatar: Economic growth was projected to remain stable at 2.4 % in 2025( 2.6 % in 2024), before accelerating to an average of 6.5 % in 2026-2027 due to the expansion of LNG capacity. These improved prospects are supported by strong non-hydrocarbon growth, particularly in education, tourism and services. The hydrocarbon sector was expected to grow timidly in 2025( 0.9 %), before undergoing a significant boost in 2026 thanks to the North Field LNG expansion coming online, supporting a 40 % rise in LNG output. Nonhydrocarbon growth was expected to remain robust thanks to infrastructure upgrades and international investments.
Saudi Arabia: Economic growth was projected to continue recovering after declining to 1.3 % in 2023, rising to 2.8 % in 2025 and an average of 4.6 % in 2026-2027. The phasing out of OPEC + voluntary production cuts was expected to take hydrocarbon GDP growth to 6.7 % in 2026 and 6.1 % in 2027. Meanwhile, non-oil GDP was expected to continue rising steadily, by 3.6 % on average between 2025 and 2027, as the Kingdom pursues its economic diversification agenda under Vision 2030.
United Arab Emirates: Economic growth was expected to maintain its ascending trend to reach 4.6 % in 2025 and stabilise at 4.9 % in 2026 and 2027. Non-oil sectors are bound to remain a key engine of growth( 4.9 % growth in 2025) thanks to targeted public investment, governance improvements and expanding external partnerships. Meanwhile, the normalisation of oil production levels( thanks to the phasing out of OPEC + voluntary cuts) was expected to support this rising trend.
Structural steel fabrication industry
The GCC structural steel fabrication market is growing due to infrastructure projects and urbanisation in Saudi Arabia, UAE and Qatar. Prefabrication and smart technologies boost demand, aligning with economic diversification goals, despite challenges such as fluctuating raw material prices and reliance on imports.
The‘ GCC Structural Steel Fabrication Market’ was valued at US $ 10.11 billion in 2024, and is expected to reach US $ 13.79 billion by 2030, rising at a CAGR of 5.15 %, according to analyst ResearchandMarkets. com.
ISMR December 2025 / January 2026 | ismr. net | 33