The world bank downgraded its outlook for all Gulf economies.
The World Bank expects Saudi Arabia’s economy to grow 3.1% in 2026, lowering its forecast by 1.2% amid the ongoing US-Iran conflict. 
In a report, the lender said the slowdown in Saudi growth is less pronounced than in its Gulf peers, reflecting steady expansion in non-oil sectors and the ability to reroute exports away from the Strait of Hormuz.
It added that Saudi Arabia, Oman and the UAE could partially redirect oil output to ports located outside the Gulf in the event of a closure of the Strait.
The bank also downgraded its outlook for all Gulf economies, cutting its UAE growth forecast to 2.4%, while revising Qatar’s outlook to a 5.7% contraction.
World Bank Forecasts for Gulf Economies Growth in 2026
Country
World Bank Forecast – April 2026
Change vs. January 2026 Forecast
Saudi Arabia
3.1 %
(2.7%)
Qatar
2.4 %
(11.0%)
Kuwait
(5.7%)
(9.0%)
Oman
(6.4%)
(1.2%)
Bahrain
2.4 %
(1.8%)
Qatar
1.3 %
(2.7%)
The world bank downgraded its outlook for all Gulf economies.
The World Bank expects Saudi Arabia’s economy to grow 3.1% in 2026, lowering its forecast by 1.2% amid the ongoing US-Iran conflict.
In a report, the lender said the slowdown in Saudi growth is less pronounced than in its Gulf peers, reflecting steady expansion in non-oil sectors and the ability to reroute exports away from the Strait of Hormuz.
It added that Saudi Arabia, Oman and the UAE could partially redirect oil output to ports located outside the Gulf in the event of a closure of the Strait.
The bank also downgraded its outlook for all Gulf economies, cutting its UAE growth forecast to 2.4%, while revising Qatar’s outlook to a 5.7% contraction.
World Bank Forecasts for Gulf Economies Growth in 2026
Country
World Bank Forecast – April 2026
Change vs. January 2026 Forecast
Saudi Arabia
3.1 %
(2.7%)
Qatar
2.4 %
(11.0%)
Kuwait
(5.7%)
(9.0%)
Oman
(6.4%)
(1.2%)
Bahrain
2.4 %
(1.8%)
Qatar
1.3 %
(2.7%)
