MEcon | October 2026 Edition
This report provides October updates and analysis on key topics and regional insights across the Middle East, with a focus on Saudi Arabia, the United Arab Emirates, and Qatar.
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Saudi Arabia
Saudi Arabia continued to show resilience in domestic activity, with stronger non-oil business conditions and relatively contained inflation despite a sharper oil-led slowdown and heightened regional risks. External conditions softened, reflected in a narrower goods trade surplus in August, weaker net FDI inflows in Q2 and a lower IMF growth forecast for 2026. Diversification nevertheless continued through capital market reforms, housing and urban development, and a greater focus on investments with nearer-term cash generation.
UAE
The UAE’s non-oil economy continued to show pockets of resilience, with business conditions remaining strong, hiring rebounding and foreign investor interest in real estate persisting. However, momentum softened as UAE real GDP contracted in Q2 amid weakness in trade, transport and hospitality, while the IMF downgraded its 2026 growth forecast. Price pressures in Dubai remained elevated despite some moderation.
Qatar
Qatar’s economy remained under significant pressure, with conflict-related LNG disruption continuing to weigh heavily on growth even as parts of the non-hydrocarbon economy showed greater resilience. Non-energy business conditions remained subdued, though the near-term outlook improved somewhat, while the IMF sharply lowered its 2026 growth forecast. New project, capital market and energy initiatives nevertheless pointed to continued efforts to support domestic activity and longer-term diversification.
