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Business news and financial news, analysis, opinion 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 across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to surpass its 2025 performance regardless of soft oil earnings and continuous global unpredictabilities. According to a new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, showing a resistant nonenergy sector, strong consumer characteristics, and slowly improving oil output.

But the current forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly steady worldwide backdrop. The report highlights GCC consumers as a significant chauffeur of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are expected to sustain a surge in consumer spending across the Gulf.

Credit growth is also anticipated to stay elevated as access to monetary services widens. With GCC central banks anticipated to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decrease, providing families and organizations further motivation to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended photo.

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This might weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international need enhances. Qatar, meanwhile, sticks out as a regional outperformer, with substantial expansions in gas production and exports expected to lift its overall economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its fiscal deficit by two portion points. The report keeps in mind that these cuts might not materialise completely if countercyclical costs steps are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm risks tied to oil prices and worldwide demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: resistant customers, robust nonenergy sectors, improving oil characteristics, and strategic financial preparation. With these elements aligning, the area is preparing for among its most well balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

Industrial Excellence: a Key Driver for Regional Success

RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resistant in 2026, driven by strong domestic need and a broadly steady global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic item of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

We expect GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the area is set to speed up 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 continued progress towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outperform their global peers.

In December, the IMF even more said that heading inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to stay elevated in the GCC region throughout 2026, as access to monetary services is expected to grow and financing is forecasted to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by reducing monetary policy further, which in turn will decrease financial obligation servicing expenses and improve disposable income and demand," said the report.