The economies of the Middle East, North Africa, Afghanistan, and Pakistan region are projected to contract by 2.1% in 2026, with Gulf Cooperation Council (GCC) states expected to be hit harder, contracting by an average of 4.3%, according to a new World Bank report released on Tuesday.
Qatar and Kuwait are expected to be the hardest-hit GCC economies, with GDP forecast to contract by 20.9% and 14.6%, respectively, in 2026. The United Arab Emirates and Saudi Arabia are projected to be the least affected among GCC members, with their economies forecast to contract by 1.6% and 2.0%, respectively.
Qatar’s economy, facing its weakest growth forecast in decades, has been heavily affected by the closure of the Strait of Hormuz. Average monthly natural gas production in Qatar fell by approximately 67% between March and July 2026, compared to the same period in 2025.
Gulf oil production…
