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Business news and financial news, analysis, opinion and stats covering the 6 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 accelerate in 2026, with the area forecasted to exceed its 2025 performance in spite of muted oil profits and continuous worldwide unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

The newest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly constant international background. The report highlights GCC customers as a significant motorist of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to sustain a rise in consumer costs across the Gulf.

Credit development is also forecast to remain elevated as access to financial services broadens. With GCC central banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are most likely to decline, giving homes and businesses even more inspiration to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a blended picture.

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This might weigh on firsthalf growth, especially for economies more depending on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten and global need enhances. Qatar, meanwhile, stands apart as a local outperformer, with substantial growths in gas production and exports anticipated to raise its total financial efficiency.

Saudi Arabia's 2026 budget plan expects a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by 2 portion points. Nevertheless, the report keeps in mind that these cuts may not materialise totally if countercyclical spending steps are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Regardless of shortterm risks connected to oil prices and international demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial preparation. With these factors lining up, the region is getting ready for among its most balanced periods of growth recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly constant global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the area is set to accelerate 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 progress towards diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outshine their worldwide peers.

In December, the IMF even more said that heading inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to stay elevated in the GCC area throughout 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 reserve banks are expected to follow the US Federal Reserve by alleviating financial policy even more, which in turn will lower debt maintenance expenses and increase disposable earnings and demand," said the report.