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ANSR July GCC PRs 50DR+

Economic growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region projected to exceed its 2025 performance in spite of muted oil incomes and continuous worldwide unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

The newest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly constant international background. The report highlights GCC consumers as a major motorist of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to fuel a rise in customer costs throughout the Gulf.

Credit development is also anticipated to stay elevated as access to financial services expands. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decline, offering families and organizations even more motivation to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a mixed photo.

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This could weigh on firsthalf growth, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and international need improves. Qatar, on the other hand, sticks out as a local outperformer, with considerable growths in gas production and exports expected to raise its total economic efficiency.

Saudi Arabia's 2026 budget expects a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 percentage points. However, the report keeps in mind that these cuts may not materialise completely if countercyclical spending measures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm threats connected to oil prices and worldwide demand, the GCC's 2026 financial outlook is specified by strength in principles: durable customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial preparation. With these factors aligning, the region is preparing for one of its most well balanced periods of expansion in recent years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly constant global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic product of the GCC area is expected to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic growth in the region 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their worldwide peers.

In December, the IMF further said that headline inflation is expected to remain below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC region during 2026, as access to financial services is expected to grow and loaning is forecasted to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by easing financial policy even more, which in turn will decrease debt servicing costs and enhance disposable income and demand," said the report.