How to Maintain a Competitive Edge in 2026

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

ANSR July GCC PRs 50DR+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to outperform its 2025 efficiency despite soft oil profits and ongoing worldwide uncertainties. According to a brand-new Oxford Economics research rundown, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

The most current projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly stable 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 earnings are expected to sustain a surge in customer costs throughout the Gulf.

Credit growth is also forecast to remain elevated as access to monetary services widens. With GCC main banks anticipated to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decrease, providing households and businesses further incentive to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook provides a blended picture.

How to Maintain a Leading Edge in 2026

This might weigh on firsthalf growth, especially for economies more based on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and global demand enhances. Qatar, meanwhile, stands out as a local outperformer, with substantial expansions in gas production and exports anticipated to lift its general financial efficiency.

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

Regardless of shortterm dangers connected to oil rates and international need, the GCC's 2026 financial outlook is specified by strength in basics: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial preparation. With these elements lining up, the area is getting ready for one of its most well balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

How to Optimise Regional Operations in 2026

RIYADH: Gulf Cooperation Council local economies are anticipated to stay resistant in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real 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 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 development in the region 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 area's ongoing development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their global peers.

In December, the IMF further stated that heading inflation is expected to stay 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 throughout 2026, as access to monetary services is anticipated to grow and loaning is predicted 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 further, which in turn will decrease debt servicing costs and enhance disposable earnings and need," stated the report.