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

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outshine its 2025 performance regardless of muted oil revenues and ongoing global unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong customer dynamics, and gradually enhancing oil output.

The latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic demand and a broadly steady international backdrop. The report highlights GCC consumers as a significant chauffeur of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to sustain a rise in customer costs throughout the Gulf.

Credit development is also anticipated to stay elevated as access to monetary services expands. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, giving homes and organizations even more impetus to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a mixed picture.

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This could weigh on firsthalf development, especially for economies more reliant on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and worldwide demand enhances. Qatar, on the other hand, sticks out as a local outperformer, with substantial expansions in gas production and exports expected to raise its total economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 percentage points. Nevertheless, the report notes that these cuts may not materialise fully if countercyclical costs procedures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm threats connected to oil prices and worldwide demand, the GCC's 2026 financial outlook is defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial preparation. With these elements lining up, the area is preparing for among its most balanced durations of expansion over 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 durable in 2026, driven by strong domestic need and a broadly steady international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic item of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

United States trade policy under President Donald Trump has had no noteworthy impact on local growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It added: "Meanwhile, oil production has actually gradually increased, supplying a boost to the region's economies. 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 financial development 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 area's ongoing progress toward diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their worldwide peers. Oxford Economics stated that low inflation has assisted protect growth in real non reusable income, which has also been supported by strong need and very low joblessness rates."We do not picture any let-up, as federal governments continue to press for higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further said that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 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 during 2026, as access to financial services is anticipated to grow and loaning is predicted to be supported by more cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by relieving financial policy even more, which in turn will decrease debt servicing costs and improve non reusable earnings and demand," stated the report.