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Business news and financial news, analysis, viewpoint and statistics covering the six 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 area forecasted to outshine its 2025 performance despite muted oil incomes and continuous international uncertainties. According to a brand-new Oxford Economics research briefing, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and slowly improving oil output.

But the most recent forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly consistent worldwide background. The report highlights GCC customers as a major driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to sustain a rise in consumer spending throughout the Gulf.

Credit growth is also forecast to stay elevated as access to monetary services widens. With GCC central banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are likely to decline, offering families and businesses further impetus to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a combined image.

Predicting the 2026 Middle East Corporate Landscape

This could weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and international demand enhances. Qatar, on the other hand, sticks out as a local outperformer, with significant growths in gas production and exports expected to lift its total financial performance.

Saudi Arabia's 2026 budget prepares for a 6 percent cut in capital expenditure as the kingdom intends to narrow its financial deficit by 2 portion points. The report notes that these cuts might not materialise completely if countercyclical costs steps are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Despite shortterm threats connected to oil prices and worldwide need, the GCC's 2026 financial outlook is specified by strength in fundamentals: durable customers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these aspects lining up, the region is getting ready for one of its most balanced durations of growth over the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain resilient in 2026, driven by strong domestic demand and a broadly constant worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC region is expected to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We expect GCC growth will increase 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 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 ongoing development towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their international peers. Oxford Economics said that low inflation has actually helped protect development in genuine non reusable earnings, which has likewise been supported by strong need and extremely low unemployment rates."We do not picture any let-up, as governments continue to promote greater foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more said that heading inflation is anticipated to remain listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to stay raised in the GCC region during 2026, as access to financial services is expected to grow and lending is predicted to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the US Federal Reserve by alleviating financial policy further, which in turn will decrease debt maintenance expenses and enhance non reusable income and demand," stated the report.