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Business news and financial news, analysis, viewpoint and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to surpass its 2025 performance in spite of soft oil earnings and continuous worldwide uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

However the latest projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic need and a broadly stable worldwide backdrop. The report highlights GCC consumers as a major chauffeur of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are expected to fuel a surge in consumer costs throughout the Gulf.

Credit growth is likewise forecast to remain elevated as access to financial services expands. With GCC main banks anticipated to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decrease, giving families and companies further inspiration to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a mixed image.

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This might weigh on firsthalf development, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and worldwide need improves. Qatar, meanwhile, stands out as a regional outperformer, with substantial growths in gas production and exports anticipated to lift its general economic efficiency.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 portion points. The report notes that these cuts may not materialise totally if countercyclical costs measures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm dangers tied to oil prices and international demand, the GCC's 2026 financial outlook is specified by strength in principles: resistant customers, robust nonenergy sectors, improving oil characteristics, and tactical financial planning. With these elements aligning, the region is preparing for one of its most well balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain durable in 2026, driven by strong domestic need and a broadly steady worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC area is expected to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the area is set to accelerate to 4.3 percent by 2027, driven by expanding non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their worldwide peers. Oxford Economics stated that low inflation has actually helped safeguard growth in genuine non reusable earnings, which has also been supported by strong demand and very low unemployment rates."We do not imagine any let-up, as federal governments continue to promote greater foreign direct financial investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF further stated that headline inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to remain elevated in the GCC region during 2026, as access to monetary services is anticipated to grow and lending is projected to be supported by further cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy further, which in turn will lower debt maintenance expenses and enhance non reusable income and demand," said the report.