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Accelerating Regional Industrial Expansion through Innovation

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Service news and monetary news, analysis, opinion and stats covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

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Financial development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region forecasted to outshine its 2025 performance in spite of soft oil revenues and ongoing international unpredictabilities. According to a brand-new Oxford Economics research study rundown, GCC GDP development is expected to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually improving oil output.

The newest projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly stable global backdrop. The report highlights GCC consumers as a major chauffeur of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a surge in customer costs throughout the Gulf.

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Credit growth is also anticipated to remain raised as access to monetary services broadens. With GCC reserve banks anticipated to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decrease, offering homes and services even more motivation to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a mixed photo.

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This might weigh on firsthalf growth, especially for economies more depending on oil extraction. However, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten up and worldwide need improves. Qatar, meanwhile, sticks out as a regional outperformer, with considerable expansions 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 investment as the kingdom intends to narrow its financial deficit by 2 portion points. The report notes that these cuts may not materialise completely if countercyclical costs measures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Regardless of shortterm dangers connected to oil prices and worldwide demand, the GCC's 2026 financial outlook is defined by strength in principles: resilient customers, robust nonenergy sectors, improving oil characteristics, and tactical fiscal preparation. With these elements aligning, the region is preparing for one of its most well balanced durations of growth in the last few years anchored by a clear upward trajectory in GDP development.

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

US trade policy under President Donald Trump has had no notable influence on regional growth, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It added: "Meanwhile, oil production has slowly increased, providing a boost to the region's economies. We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the region is set to speed up to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+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 toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their international peers.

In December, the IMF further stated that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay elevated in the GCC region throughout 2026, as access to financial services is anticipated to grow and loaning is forecasted to be supported by further cuts in interest rates."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy even more, which in turn will lower debt servicing expenses and boost disposable earnings and need," stated the report.

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