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Business news and financial news, analysis, viewpoint and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to exceed its 2025 performance regardless of muted oil profits and ongoing worldwide unpredictabilities. According to a brand-new Oxford Economics research study briefing, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

However the most current projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly constant international background. The report highlights GCC customers 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 expected to sustain a rise in customer spending throughout the Gulf.

Credit development is likewise anticipated to remain elevated as access to monetary services broadens. With GCC reserve banks expected to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decline, giving households and companies even more inspiration to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a mixed image.

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This could weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten up and global demand enhances. Qatar, meanwhile, stands apart as a local outperformer, with substantial expansions in gas production and exports expected to lift its overall economic efficiency.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital expense as the kingdom intends to narrow its financial deficit by two portion points. However, the report keeps in mind that these cuts might not materialise completely if countercyclical costs measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Despite shortterm threats connected to oil prices and worldwide need, the GCC's 2026 financial outlook is specified by strength in principles: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial preparation. With these elements lining up, the area is preparing for one of its most well balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resilient in 2026, driven by strong domestic demand and a broadly constant global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC region is expected to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.

United States trade policy under President Donald Trump has had no noteworthy impact on regional development, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has slowly increased, offering a boost to the region's economies. We anticipate GCC growth 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 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 region's ongoing development toward diversity. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to surpass their international peers.

In December, the IMF even more said that heading inflation is expected 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 development is anticipated to stay elevated in the GCC area throughout 2026, as access to monetary services is expected to grow and financing is projected to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC central banks are expected to follow the United States Federal Reserve by alleviating monetary policy further, which in turn will lower debt maintenance costs and boost non reusable earnings and need," said the report.