Operational Excellence: a Key Pillar for Regional Growth

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

ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region forecasted to surpass its 2025 performance despite muted oil incomes and continuous global unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong consumer characteristics, and gradually improving oil output.

However the current forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly constant global backdrop. The report highlights GCC customers as a significant motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to sustain a rise in customer spending across the Gulf.

Credit development is likewise forecast to remain raised as access to monetary services broadens. With GCC reserve 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 services even more inspiration to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a combined image.

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This could weigh on firsthalf development, especially for economies more based on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global demand improves. Qatar, meanwhile, stands out as a regional outperformer, with significant expansions in gas production and exports anticipated to lift its general financial performance.

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

Despite shortterm dangers connected to oil costs and international need, the GCC's 2026 economic outlook is defined by strength in basics: resistant customers, robust nonenergy sectors, improving oil characteristics, and tactical financial planning. With these aspects aligning, the area is getting ready for among its most balanced durations of growth in the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to stay resilient in 2026, driven by strong domestic need and a broadly constant international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic item of the GCC region is expected to broaden 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 notable influence on local development, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It included: "Meanwhile, oil production has slowly increased, providing an increase to the region's economies. We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial development 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to exceed their worldwide peers.

In December, the IMF even more stated that headline inflation is expected to remain 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 anticipated to remain raised in the GCC area during 2026, as access to financial 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 anticipated to follow the United States Federal Reserve by reducing monetary policy even more, which in turn will decrease debt servicing expenses and enhance non reusable earnings and need," stated the report.