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Business news and monetary news, analysis, viewpoint and stats covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic development across 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 earnings and ongoing global uncertainties. According to a new Oxford Economics research study instruction, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

But the current projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly steady global backdrop. The report highlights GCC consumers as a major motorist of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are expected to sustain a rise in consumer spending across the Gulf.

Credit development is also anticipated to remain elevated as access to monetary services broadens. With GCC main banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are most likely to decrease, offering homes and organizations even more motivation to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a mixed image.

How to Secure a Competitive Advantage in 2026

This could weigh on firsthalf development, particularly for economies more based on oil extraction. However, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and worldwide need improves. Qatar, meanwhile, stands out as a local outperformer, with significant expansions in gas production and exports anticipated to lift its total economic performance.

Saudi Arabia's 2026 spending plan expects a 6 percent cut in capital expense as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise totally if countercyclical costs steps are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development programs.

Despite shortterm dangers connected to oil rates and international demand, the GCC's 2026 economic outlook is defined by strength in principles: durable customers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal preparation. With these factors lining up, the region is getting ready for one of its most well balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP growth.

Navigating the Next GCC Corporate Landscape

RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resistant in 2026, driven by strong domestic demand and a broadly stable global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC area is expected to broaden by 4.4 percent in 2026, up from the predicted 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 stated that financial growth 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 represented 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outperform their global peers. Oxford Economics stated that low inflation has assisted safeguard development in genuine disposable income, which has likewise been supported by strong need and very low unemployment rates."We do not picture any let-up, as federal governments continue to promote higher foreign direct investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF further said that headline inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to stay raised in the GCC area during 2026, as access to financial services is anticipated to grow and lending is projected to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC central banks are expected to follow the US Federal Reserve by alleviating monetary policy even more, which in turn will lower debt servicing costs and improve disposable income and need," stated the report.