Gulf nations are projected to grow 4.1% by 2026, outpacing the broader Middle East and North Africa (MENA) region’s expected 3.3% growth, the World Bank announced Tuesday.

Ousmane Dione, World Bank vice president for MENA, highlighted the economic divergence between oil-producing and oil-importing nations while talking to WAM.

“Diversification efforts have strengthened Gulf economies,” Dione said at the World Governments Summit 2025 in Dubai. “Meanwhile, instability continues to challenge many non-oil countries in the region.”

Dione noted that investments in non-oil sectors are giving Gulf Cooperation Council (GCC) nations a competitive advantage.

He also discussed a new memorandum of understanding (MoU) signed with the Mohamed bin Zayed Water Initiative to improve water security in the region.

MENA accounts for 55% of global desalinated water production, but Dione emphasized the need for alternatives like water reuse, AI-driven leak detection, and better irrigation systems.

The World Bank underscored the importance of investing in non-oil sectors and sustainable resource management to ensure long-term stability across the region.