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Business news and financial 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 growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to exceed its 2025 performance despite soft oil profits and ongoing international unpredictabilities. According to a brand-new Oxford Economics research rundown, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

The latest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic demand and a broadly constant worldwide backdrop. The report highlights GCC customers as a major chauffeur of the region's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to sustain a rise in consumer costs across the Gulf.

Credit growth is likewise anticipated to stay elevated as access to financial services widens. With GCC central banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are likely to decrease, giving households and services further incentive to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook provides a combined photo.

Emerging Future Shifts Defining the 2026 Regional Economy

This could weigh on firsthalf development, particularly for economies more based on oil extraction. However, Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global demand improves. Qatar, on the other hand, stands apart as a regional outperformer, with substantial expansions in gas production and exports anticipated to raise its general financial efficiency.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital investment as the kingdom aims to narrow its fiscal deficit by two portion points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending procedures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm risks tied to oil prices and worldwide demand, the GCC's 2026 economic outlook is specified by strength in principles: durable customers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these elements aligning, the area is preparing 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 expected to remain resistant in 2026, driven by strong domestic demand and a broadly consistent global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic product of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the region is set to accelerate 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 continued progress towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outshine their international peers.

In December, the IMF even more stated that heading inflation is anticipated to remain listed below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to stay elevated in the GCC region during 2026, as access to monetary services is anticipated to grow and lending is predicted to be supported by more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC main banks are expected to follow the United States Federal Reserve by relieving monetary policy further, which in turn will lower debt servicing costs and improve disposable income and need," stated the report.