GCC Economies Outperform Worldwide Average In Economic Freedom Index
Gulf Cooperation Council economies have strengthened their collective standing in the 2026 Index of Economic Freedom, outperforming the global average as reforms continue to reshape regulatory frameworks, market openness and investment conditions across the region.
According to data released by the GCC Statistical Center, the six-member bloc posted an average score of 66.9, exceeding the global average of 59.9 and highlighting the region’s relatively higher level of economic openness.
“All GCC countries recorded a slight improvement and relative stability in the index value between 2025 and 2026, with limited variation among member states,” the GCC-Stat report said.
It added: “Oman and Saudi Arabia recorded the strongest improvements this year, rising 19 places and four places respectively.”
The UAE remained the highest-ranked GCC economy, holding 23rd place globally in 2026 with a score of 71.9, supported by what the report described as strong institutional frameworks, regulatory predictability and a business-friendly operating environment.
Larger reliance of external accounts on GCC states
Pakistan’s external account is deeply dependent on the Middle East. Exports, largely headed to Western markets, have stagnated in absolute terms and declined as a share of GDP, while imports have kept rising. The widening trade gap has been bridged mainly by home remittances, which have grown fourfold over the past 15 years.
More than half of Pakistan’s inward remittances last year came from GCC countries, with nearly one-fifth from the UAE alone. With the region now caught in conflict, the risk parameters are changing, and this could weigh on the remittance outlook.
Over the last decade, Pakistan’s economy has expanded partly on the back of rising remittances, which have financed growing import-led consumption — from energy and automobiles to food and other essentials.
There is progress on the productivity front. Productivity remains low, while exports continue to shrink as a share of the economy. Any dent in remittances, therefore, would directly affect the size of economy. If imports have to be curbed, economic growth and employment would become the immediate casualties.
If remittances fall and exports cannot grow quickly — which is unlikely in the short term — Pakistan would need foreign investment and debt inflows to finance the resulting current account gap. However, FDI has performed even worse than exports and is now close to negligible. Without fixing the economy’s structural weaknesses, both local and foreign investments are likely to remain weak.
Oman’s economy to grow 2.4pc this year
Ministry of Finance, hosted the World Bank Group to review the latest Gulf Economic Monitor report, focusing on the economic prospects of the GCC nations on Thursday. The meeting provided a platform to discuss regional and global economic developments, alongside recommendations for future growth. The report highlights that GCC economies have remained resilient despite global challenges, largely due to the rapid diversification of non-oil sectors, an expanded government revenue base, and increased investment in infrastructure projects.
According to the report, GCC economic growth reached 3.2 percent in 2025 and is projected to rise to 4.5 percent in 2026. Inflation across the region is expected to remain stable at approximately 2.1 percent. Regarding Oman, the report notes positive fiscal results, with the national economy growing by 3.1 percent in 2025. This success is attributed to government measures aimed at improving financial performance and spending efficiency. Looking ahead to 2026, Oman’s economy is expected to continue its positive trajectory with a 2.4 percent growth rate and a stable public debt level of 35 percent of the Gross Domestic Product.
GCC is at an inflection point?
The Gulf Cooperation Council (GCC) was established in 1981 as an alliance for economic, trade and security corporation, and remains a central mechanism for regional coordination.
The six GCC member states — Saudi Arabia, Kuwait, UAE, Qatar, Bahrain and Oman — have successfully advanced their national visions, diversifying away from hydrocarbons.
Yet the current geopolitical tensions, with broader effects felt across the Gulf, is placing that progress under increased pressure. It presents a more complex challenge and could influence much of what the GCC states have achieved, potentially slowing diversification programs and threatening their long held identity as a stable region.
$5 billion trade goal for Turkey, Kuwait; stronger ties hailed
Turkish Ambassador to Kuwait Tuba Sönmez expressed her satisfaction over the development of Turkish-Kuwaiti relations, stressing that this progress is an embodiment of the political will of the leaders of both nations and the aspirations of their friendly peoples. In a press statement on Wednesday,
Sönmez pointed out that the visit of Turkish President Recep Tayyip Erdoğan to Kuwait in October last year was pivotal in reinforcing the strategic dimension of bilateral ties. She said the upcoming visit of Foreign Affairs Minister Sheikh Jarrah Al- Jaber is expected to further propel these relations toward wider horizons in multiple sectors. She stressed that the decision of Sheikh Jarrah Al-Jaber to make Türkiye his first destination outside the Arab world after assuming office underscores the depth and strength of ties between the two countries.
She added this aligns with the first overseas visit of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah beyond the Arab world, which was also to Türkiye, reflecting the significance of the partnership. She disclosed that discussions during the visit focused on major regional developments including the ongoing tensions in the region, situation in Palestine, Gulf security, and challenges related to maritime navigation in the Strait of Hormuz.