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

Financial development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to outshine its 2025 efficiency in spite of soft oil earnings and ongoing international unpredictabilities. According to a brand-new Oxford Economics research rundown, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly enhancing oil output.
But the latest projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic demand and a broadly constant international backdrop. The report highlights GCC customers as a major motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to sustain a surge in consumer spending throughout the Gulf.
The Future of Performance Management in the UAECredit growth is likewise anticipated to remain elevated as access to financial services widens. 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 decrease, giving households and businesses further inspiration to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a blended photo.
This might weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and worldwide need improves. Qatar, meanwhile, stands out as a local outperformer, with significant expansions in gas production and exports expected to raise its total economic performance.
Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 percentage points. However, the report notes that these cuts may not materialise fully if countercyclical spending measures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.
Regardless of shortterm threats connected to oil costs and global demand, the GCC's 2026 financial outlook is defined by strength in basics: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal preparation. With these elements lining up, the region is preparing for one of its most well balanced durations of expansion in recent years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council local economies are expected to stay resilient in 2026, driven by strong domestic need and a broadly stable global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the genuine gdp of the GCC region is expected to broaden by 4.4 percent in 2026, up from the forecasted 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 financial development in the region is set to speed up to 4.3 percent by 2027, driven by expanding non-oil sectors.

Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing progress toward diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their international peers.
In December, the IMF further stated that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near 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 remain raised in the GCC area during 2026, as access to monetary services is anticipated to grow and lending is forecasted to be supported by more 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 reducing financial policy further, which in turn will lower financial obligation servicing costs and enhance non reusable earnings and demand," stated the report.
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