Industrial Excellence: a Key Pillar for 2026 Growth

Company news and financial news, analysis, viewpoint and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Financial development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to surpass its 2025 performance regardless of muted oil earnings and ongoing global uncertainties. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong customer dynamics, and gradually improving oil output.

But the latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly consistent worldwide backdrop. The report highlights GCC consumers as a significant driver of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to sustain a rise in customer costs across the Gulf.

Credit growth is likewise forecast to remain elevated as access to financial services expands. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, offering households and companies further incentive to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended photo.

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This could weigh on firsthalf growth, particularly for economies more based on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and worldwide demand enhances. Qatar, meanwhile, sticks out as a regional outperformer, with significant growths in gas production and exports anticipated to lift its general economic efficiency.

Saudi Arabia's 2026 budget 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 might not materialise completely if countercyclical spending measures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Despite shortterm threats tied to oil prices and worldwide demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil characteristics, and strategic fiscal preparation. With these aspects aligning, the area is getting ready for one of its most balanced periods of growth recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resistant in 2026, driven by strong domestic need and a broadly constant international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp 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 effect on local growth, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It included: "On the other hand, oil production has actually gradually increased, supplying a boost to the region's economies. We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the region is set to accelerate to 4.3 percent by 2027, driven by expanding non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their global peers. Oxford Economics stated that low inflation has actually helped secure development in real non reusable earnings, which has actually also been supported by strong demand and very low unemployment rates."We do not picture any let-up, as federal 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 stated that heading inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 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 expected to stay elevated in the GCC region throughout 2026, as access to monetary services is expected to grow and loaning is projected to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the United States Federal Reserve by reducing monetary policy even more, which in turn will decrease debt servicing costs and boost disposable income and demand," said the report.