In this edition of Middle East Economy Watch, we explore how the Gulf Cooperation Council (GCC) is deepening its commitment to trade liberalisation at a time when globalisation is under pressure in some parts of the world.

As the global order becomes increasingly multipolar, the region’s economies are charting a confident new course by expanding trade relationships beyond the Middle East, positioning themselves as economic and geopolitical powerhouses. The United Arab Emirates (UAE), for example, has been signing multiple trade agreements in the last few years, while the other GCC states are also advancing trade-positive agendas, making steady progress through both bilateral and GCC-level negotiations.

While trade is supportive of diversification, oil remains central to the economies of many Middle Eastern states. We unpack the implications of recent production hikes by OPEC+ set against the softening in oil prices in recent months, touching US$60 for the first time since 2020. Yet, amid these shifts, resilience and renewal define the region’s trajectory. Non-oil growth is robust in most of the GCC and in some of the other Middle Eastern countries, such as Egypt where growth is rebounding strongly on the back of decisive reforms.