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Business news and monetary 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 development throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region projected to outperform its 2025 efficiency despite soft oil incomes and continuous international uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and gradually improving oil output.

However the latest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic need and a broadly consistent international background. The report highlights GCC consumers as a significant motorist of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to sustain a surge in consumer spending throughout the Gulf.

Credit growth is also anticipated to stay elevated as access to financial services expands. With GCC reserve banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, providing homes and services even more impetus to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended photo.

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This could weigh on firsthalf development, especially for economies more dependent on oil extraction. Oxford Economics forecasts 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 local outperformer, with considerable expansions in gas production and exports expected to raise its overall economic efficiency.

Saudi Arabia's 2026 spending plan expects a 6 percent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts may not materialise fully if countercyclical spending steps are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

In spite of shortterm risks connected to oil rates and international need, the GCC's 2026 economic outlook is specified by strength in principles: durable consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial preparation. With these elements lining up, the region is getting ready for among its most balanced durations of growth in recent years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC region is expected to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

United States trade policy under President Donald Trump has actually had no significant influence on local development, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It included: "Meanwhile, oil production has actually gradually increased, supplying a boost to the region'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 stated that economic development in the region is set to accelerate 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued development towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to outshine their international peers. Oxford Economics stated that low inflation has actually assisted safeguard development in real non reusable earnings, which has likewise been supported by strong need and very low joblessness rates."We do not visualize any let-up, as federal governments continue to promote greater foreign direct financial investment in their push to diversify their economies away from oil and gas," the report included.

In December, the IMF further stated that heading inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC area throughout 2026, as access to monetary services is anticipated to grow and lending is predicted to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the US Federal Reserve by alleviating financial policy even more, which in turn will decrease financial obligation servicing expenses and enhance disposable earnings and need," stated the report.