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

ANSR July GCC PRs 50DR+

Financial development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to outshine its 2025 performance in spite of soft oil incomes and continuous global unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong consumer characteristics, and gradually enhancing oil output.

The newest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly constant international background. The report highlights GCC customers as a significant driver of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to sustain a rise in customer spending across the Gulf.

Credit development is likewise anticipated to remain raised as access to monetary services widens. With GCC reserve banks expected to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, offering homes and services even more motivation to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a blended image.

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This might weigh on firsthalf growth, particularly for economies more reliant on oil extraction. However, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and worldwide need enhances. Qatar, meanwhile, stands out as a local outperformer, with significant growths in gas production and exports anticipated to lift its overall financial efficiency.

Saudi Arabia's 2026 budget plan expects a 6 per cent cut in capital expense as the kingdom intends to narrow its fiscal deficit by two percentage points. The report notes that these cuts may not materialise fully if countercyclical spending procedures are triggered 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 tied to oil rates and international demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: durable consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal planning. With these elements aligning, the region is preparing for one of its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to stay durable in 2026, driven by strong domestic demand and a broadly consistent worldwide economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

US trade policy under President Donald Trump has had no notable impact on regional growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has gradually increased, providing a boost to the area's economies. We expect GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development 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 accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing development towards diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to exceed their global peers.

In December, the IMF even more said that heading inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, close to 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 stay elevated in the GCC area during 2026, as access to monetary services is expected to grow and loaning is forecasted to be supported by additional 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 monetary policy further, which in turn will lower debt maintenance expenses and boost disposable earnings and demand," said the report.