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Company 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 growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to surpass its 2025 performance in spite of soft oil revenues and continuous international unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP development is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and gradually improving oil output.

The newest forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic need and a broadly stable international background. The report highlights GCC consumers as a major motorist of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to sustain a surge in consumer spending throughout the Gulf.

Credit growth is also forecast to stay raised as access to financial services widens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decline, providing households and companies further motivation to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a mixed picture.

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This could weigh on firsthalf growth, especially for economies more depending on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and worldwide need improves. Qatar, on the other hand, stands apart as a local outperformer, with significant growths in gas production and exports anticipated to raise its total economic performance.

Saudi Arabia's 2026 budget plan expects a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 portion points. The report keeps in mind that these cuts may not materialise completely if countercyclical costs procedures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development programs.

Regardless of shortterm threats connected to oil costs and international demand, the GCC's 2026 economic outlook is defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial preparation. With these factors lining up, the area is preparing for one of its most balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to stay resistant in 2026, driven by strong domestic need and a broadly constant global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC area is expected to broaden 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 regional development, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It included: "On the other hand, oil production has slowly increased, supplying an increase to the area's economies. 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 growth 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 development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their international peers.

In December, the IMF even more stated that heading inflation is expected to remain 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 raised in the GCC region throughout 2026, as access to financial services is expected to grow and loaning is predicted to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by easing financial policy even more, which in turn will lower debt servicing expenses and boost non reusable income and demand," said the report.