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Company news and financial news, analysis, viewpoint and statistics covering the six 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 region predicted to exceed its 2025 performance in spite of muted oil earnings and ongoing worldwide unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong consumer dynamics, and slowly improving oil output.

The latest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly stable worldwide background. The report highlights GCC customers as a major chauffeur of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are anticipated to fuel a surge in consumer costs across the Gulf.

Credit growth is also forecast to stay raised as access to financial services widens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decrease, providing households and companies further inspiration to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a combined image.

Industrial Excellence: a Key Pillar for Regional Success

This could weigh on firsthalf growth, especially for economies more based on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and global need improves. Qatar, on the other hand, stands apart as a local outperformer, with substantial expansions in gas production and exports anticipated to raise its overall economic performance.

Saudi Arabia's 2026 budget plan prepares for a 6 percent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by two portion points. Nevertheless, the report keeps in mind that these cuts might not materialise fully if countercyclical costs steps are activated to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development agendas.

In spite of shortterm risks tied to oil rates and international need, the GCC's 2026 financial outlook is defined by strength in basics: resilient customers, robust nonenergy sectors, improving oil characteristics, and strategic fiscal planning. With these factors lining up, the area is getting ready for among its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP development.

Emerging Strategic Trends Defining the 2026 Regional Economy

RIYADH: Gulf Cooperation Council local economies are expected to stay resistant 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 genuine gross domestic item of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

United States 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: "Meanwhile, oil production has actually slowly increased, supplying an increase to the area's economies. We expect GCC growth 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 area 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 development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their international peers.

In December, the IMF further stated that heading inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to stay raised in the GCC region throughout 2026, as access to financial services is expected to grow and loaning is projected to be supported by further cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the US Federal Reserve by easing monetary policy even more, which in turn will reduce debt servicing costs and increase disposable income and need," stated the report.