How to Maintain a Competitive Advantage in 2026

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+

Financial development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outperform its 2025 efficiency in spite of soft oil earnings and continuous worldwide unpredictabilities. According to a brand-new Oxford Economics research study briefing, GCC GDP development is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

The newest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly consistent worldwide backdrop. The report highlights GCC customers as a significant motorist of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to fuel a rise in customer spending throughout the Gulf.

Credit development is also forecast to remain raised as access to financial services widens. With GCC central banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are most likely to decrease, providing households and services further impetus to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a combined photo.

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This might weigh on firsthalf growth, especially for economies more reliant on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and global need enhances. Qatar, meanwhile, stands out as a local outperformer, with substantial growths in gas production and exports expected to raise its total economic performance.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 portion points. However, the report notes that these cuts may not materialise completely if countercyclical costs 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 risks tied to oil rates and international demand, the GCC's 2026 financial outlook is defined by strength in basics: resilient customers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial preparation. With these elements aligning, the region is preparing for among its most balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP growth.

Essential Steps for Industrial Excellence in the GCC

RIYADH: Gulf Cooperation Council local economies are anticipated to remain resistant in 2026, driven by strong domestic demand and a broadly consistent 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 projected 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 stated that financial development in the area is set to speed up to 4.3 percent by 2027, driven by broadening 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 continued development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to surpass their international peers.

In December, the IMF even more said that headline inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay elevated in the GCC region during 2026, as access to financial services is anticipated to grow and financing is forecasted to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by relieving monetary policy further, which in turn will lower debt servicing expenses and enhance non reusable income and demand," said the report.