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

Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to surpass its 2025 performance regardless of soft oil earnings and ongoing international uncertainties. According to a new Oxford Economics research rundown, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually improving oil output.
However the most current projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly stable global background. 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 surge in consumer spending throughout the Gulf.
Credit growth is also anticipated to remain raised as access to monetary services expands. With GCC central banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decrease, giving families and companies even more incentive to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a combined photo.
This could weigh on firsthalf development, particularly for economies more dependent on oil extraction. However, Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten and worldwide demand improves. Qatar, on the other hand, stands apart as a regional outperformer, with substantial growths in gas production and exports expected to raise its overall economic efficiency.
Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise fully 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.
In spite of shortterm dangers connected to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial preparation. With these factors lining up, the region is preparing for among its most well balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council local economies are anticipated to stay resistant in 2026, driven by strong domestic need and a broadly stable global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.
We expect GCC development 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 area is set to accelerate to 4.3 percent by 2027, driven by expanding non-oil sectors.
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 progress towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to outperform their worldwide peers.
In December, the IMF even more stated that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to remain elevated in the GCC region throughout 2026, as access to monetary services is anticipated to grow and loaning is projected to be supported by more cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the United States Federal Reserve by easing monetary policy further, which in turn will reduce debt servicing expenses and improve disposable income and demand," stated the report.
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