RIYADH: According to a new research, the Gulf Cooperation Council economy is expected to grow by 8.1 percent in 2027 after falling by 2.4 percent in 2026 as regional oil exports, tourism, and investor confidence gradually return to normal after disruptions caused by conflict.
The forecast, which was released by the Institute of Chartered Accountants in England and Wales in collaboration with Oxford Economics, is predicated on the idea that an interim deal between the United States and Iran will develop into a long-term settlement that permits normalization of traffic through the Strait of Hormuz and lowers the possibility of a severe shock to oil prices.
Compared to projections made prior to the conflict, the study represents a substantial decrease. The Middle East’s GDP was earlier predicted to grow by 3.6 percent in 2026, but it is now predicted to shrink by 4.1 percent. According to the report, the economies of Kuwait, Iran, Iraq, and Qatar are anticipated to be among the most severely impacted by shipping interruptions, infrastructure damage, and tourism losses.
The report stated, “Pending details, the deal should pave the way to a gradual recovery of GCC exports, investor sentiment, and tourism.” It also stated, “Although near-term risks remain, our baseline scenario still points to a pronounced recovery in regional growth next year and beyond.
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