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Business news and monetary 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+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region forecasted to surpass its 2025 efficiency despite soft oil revenues and continuous global uncertainties. According to a new Oxford Economics research study rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.

But the latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly consistent worldwide background. The report highlights GCC consumers as a major motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to sustain a rise in customer spending across the Gulf.

Credit development is also anticipated to stay raised as access to financial services broadens. With GCC main banks expected to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decline, giving homes and companies further inspiration to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a blended image.

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This could weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global demand enhances. Qatar, meanwhile, sticks out as a local outperformer, with significant growths in gas production and exports expected to raise its overall economic performance.

Saudi Arabia's 2026 budget plan prepares for a 6 per cent cut in capital expense as the kingdom intends to narrow its financial deficit by two percentage points. The report keeps in mind that these cuts might not materialise totally if countercyclical spending steps are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Regardless of shortterm dangers tied to oil prices and global need, the GCC's 2026 economic outlook is specified by strength in principles: durable consumers, robust nonenergy sectors, improving oil characteristics, and strategic fiscal preparation. With these factors lining up, the area is getting ready for among its most balanced periods of expansion recently anchored by a clear upward trajectory in GDP growth.

How to Optimise GCC Operations in 2026

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

We anticipate GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to exceed their international peers. Oxford Economics stated that low inflation has actually helped safeguard development in genuine non reusable income, which has likewise been supported by strong need and really low joblessness rates."We do not envision any let-up, as governments continue to push for greater foreign direct investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF further stated that headline inflation is anticipated to remain 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 development is expected to remain raised in the GCC area during 2026, as access to monetary services is anticipated to grow and loaning is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by alleviating monetary policy further, which in turn will reduce debt maintenance costs and increase non reusable earnings and demand," said the report.