How to Maintain a Competitive Edge in Dubai

Business 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+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to outshine its 2025 efficiency despite soft oil earnings and continuous worldwide unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and slowly improving oil output.

But the current projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic need and a broadly consistent worldwide backdrop. The report highlights GCC consumers as a major motorist of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to sustain a rise in customer spending throughout the Gulf.

Credit development is likewise anticipated to remain raised as access to financial services widens. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decrease, offering families and companies further impetus to spend and invest. While the nonoil sector continues to anchor the area's durability, 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. Nevertheless, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and worldwide need enhances. Qatar, meanwhile, stands apart as a regional outperformer, with significant expansions in gas production and exports expected to raise its general economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 portion points. However, the report notes that these cuts might not materialise completely if countercyclical costs measures 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 dangers tied to oil costs and worldwide demand, the GCC's 2026 financial outlook is defined by strength in principles: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal planning. With these factors lining up, the region is preparing for among its most well 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 regional economies are anticipated to stay durable in 2026, driven by strong domestic need and a broadly steady worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.

US trade policy under President Donald Trump has actually had no significant influence on regional development, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has slowly increased, offering an increase to the area's economies. We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth 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 area's ongoing development toward diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to exceed their worldwide peers.

In December, the IMF even more said that headline inflation is expected to remain 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 development is anticipated to stay elevated in the GCC area during 2026, as access to monetary services is expected to grow and financing is forecasted to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the United States Federal Reserve by alleviating financial policy further, which in turn will decrease debt servicing expenses and enhance non reusable income and demand," said the report.