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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

Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outshine its 2025 performance regardless of soft oil revenues and ongoing international unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP development is expected to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a durable nonenergy sector, strong customer dynamics, and slowly enhancing oil output.
However the current forecasts suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly consistent global backdrop. The report highlights GCC customers as a major motorist of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are anticipated to fuel a surge in consumer spending throughout the Gulf.
Credit development is likewise forecast to remain elevated as access to financial services broadens. With GCC central banks expected to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decrease, giving households and services further motivation to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a combined photo.
Strategic Advice On Navigating Regional Market ComplexityThis could weigh on firsthalf development, especially for economies more reliant on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and international demand enhances. Qatar, meanwhile, stands out as a local outperformer, with considerable growths in gas production and exports expected to raise its overall financial performance.
Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts may not materialise fully if countercyclical costs measures are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.
Despite shortterm risks tied to oil costs and international need, the GCC's 2026 economic outlook is specified by strength in principles: resistant consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal preparation. With these factors aligning, the area is getting ready for one of its most balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are expected to stay resistant in 2026, driven by strong domestic need and a broadly constant worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.
We expect GCC growth will rise 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.
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 continued progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their international peers.
In December, the IMF further stated that heading inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to stay raised in the GCC region throughout 2026, as access to financial services is anticipated to grow and financing is forecasted to be supported by additional cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by reducing financial policy further, which in turn will decrease debt servicing expenses and improve disposable income and need," said the report.
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