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Business news and financial news, analysis, opinion and data covering the six 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 accelerate in 2026, with the region forecasted to outperform its 2025 efficiency in spite of soft oil revenues and continuous global unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.

However the current forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly stable international backdrop. The report highlights GCC consumers as a significant motorist of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to fuel a rise in customer spending across the Gulf.

Credit growth is likewise anticipated to remain elevated as access to financial services widens. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decline, offering families and companies further incentive to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a blended picture.

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This could weigh on firsthalf growth, especially for economies more based on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten up and global demand improves. Qatar, meanwhile, sticks out as a regional outperformer, with significant growths in gas production and exports anticipated to raise its overall financial performance.

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

Regardless of shortterm risks tied to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in principles: durable customers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial planning. With these elements aligning, the area is getting ready for one of its most balanced periods of expansion in recent years anchored by a clear upward trajectory in GDP development.

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

US trade policy under President Donald Trump has had no notable effect on local growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "Meanwhile, oil production has actually slowly increased, offering a boost to the area's economies. 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 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued progress toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their worldwide peers. Oxford Economics stated that low inflation has actually assisted protect development in real disposable earnings, which has likewise been supported by strong need and very low unemployment rates."We do not imagine any let-up, as governments continue to promote greater foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further said that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 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 raised in the GCC area during 2026, as access to monetary services is expected to grow and lending is predicted to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC central banks are anticipated to follow the United States Federal Reserve by alleviating financial policy further, which in turn will reduce financial obligation servicing expenses and improve non reusable income and demand," stated the report.