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Business 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 speed up in 2026, with the area projected to outshine its 2025 efficiency in spite of soft oil revenues and ongoing worldwide unpredictabilities. According to a new Oxford Economics research study instruction, GCC GDP development is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

But the latest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic need and a broadly constant international backdrop. The report highlights GCC customers as a major driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are expected to sustain a rise in customer costs throughout the Gulf.

Credit development is likewise forecast to stay elevated as access to financial services broadens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decrease, offering families and services even more motivation to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook provides a combined picture.

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This could weigh on firsthalf development, especially for economies more dependent on oil extraction. However, Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and worldwide demand enhances. Qatar, meanwhile, sticks out as a regional outperformer, with considerable expansions in gas production and exports expected to raise its total financial performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital expenditure as the kingdom aims to narrow its financial deficit by 2 portion points. However, the report keeps in mind that these cuts might not materialise totally if countercyclical spending steps are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Regardless of shortterm risks tied to oil prices and worldwide need, the GCC's 2026 financial outlook is defined by strength in principles: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical fiscal preparation. With these factors aligning, the region is preparing for among its most well balanced periods of growth recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to remain durable in 2026, driven by strong domestic need and a broadly consistent worldwide economy, according to an analysis. In its latest 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 predicted 4 percent this year.

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 financial growth in the area 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 represented 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued progress toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to outshine their global peers. Oxford Economics said that low inflation has actually assisted protect growth in genuine disposable earnings, which has also been supported by strong need and very low joblessness rates."We do not visualize any let-up, as federal governments continue to push for higher foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more stated that headline inflation is anticipated to stay 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 expected to remain raised in the GCC region during 2026, as access to monetary services is expected to grow and financing is projected to be supported by further 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 alleviating financial policy further, which in turn will decrease debt servicing costs and increase disposable earnings and need," stated the report.