Navigating the Next GCC Corporate Environment

Organization news and financial news, analysis, opinion and data covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Financial development throughout 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 incomes and ongoing global uncertainties. According to a new Oxford Economics research study briefing, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong customer dynamics, and gradually enhancing oil output.

The latest forecasts recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic demand and a broadly stable worldwide backdrop. The report highlights GCC consumers as a significant driver of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to sustain a surge in consumer costs throughout the Gulf.

Credit growth is also forecast to stay elevated as access to financial services expands. With GCC central banks expected to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are likely to decline, offering households and companies further impetus to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a combined photo.

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This could weigh on firsthalf development, particularly for economies more depending on oil extraction. However, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and worldwide need enhances. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports expected to raise its overall economic efficiency.

Saudi Arabia's 2026 spending plan anticipates a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 portion points. Nevertheless, the report keeps in mind that these cuts may 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.

In spite of shortterm risks connected to oil prices and global demand, the GCC's 2026 financial outlook is defined by strength in principles: durable consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial preparation. With these aspects aligning, the area is getting ready for one of its most balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

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

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 growth in the area 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to exceed their international peers.

In December, the IMF further stated that heading inflation is expected to stay listed 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 anticipated to stay raised in the GCC region throughout 2026, as access to financial services is expected to grow and financing is projected to be supported by additional cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the United States Federal Reserve by relieving monetary policy even more, which in turn will reduce financial obligation servicing costs and improve disposable income and demand," said the report.