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Company news and financial news, analysis, opinion and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area forecasted to outperform its 2025 efficiency regardless of soft oil revenues and continuous worldwide unpredictabilities. According to a new Oxford Economics research study rundown, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong consumer dynamics, and slowly improving oil output.
But the most recent projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly consistent global background. The report highlights GCC customers as a significant motorist of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a rise in customer costs throughout the Gulf.
Credit growth is also forecast to stay elevated as access to financial services expands. 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, offering families and companies even more incentive to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a combined picture.
This might weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and international demand improves. Qatar, meanwhile, stands apart as a regional outperformer, with considerable growths in gas production and exports expected to lift its general financial performance.
Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by 2 percentage points. However, the report notes that these cuts might not materialise totally if countercyclical spending measures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.
Regardless of shortterm dangers connected to oil prices and international need, the GCC's 2026 economic outlook is specified by strength in basics: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial planning. With these elements aligning, the area is preparing for among its most well balanced periods of expansion in current years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council local economies are anticipated to stay resilient in 2026, driven by strong domestic demand and a broadly stable global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.
We expect GCC development will rise 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 accelerate to 4.3 percent by 2027, driven by expanding non-oil sectors.
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 progress toward diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outshine their worldwide peers.
In December, the IMF further said that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 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 expected to stay elevated in the GCC area during 2026, as access to financial services is anticipated to grow and lending is forecasted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the US Federal Reserve by easing monetary policy even more, which in turn will lower financial obligation servicing expenses and increase non reusable earnings and demand," said the report.
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