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Business news and financial news, analysis, opinion and data 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 accelerate in 2026, with the area predicted to outshine its 2025 performance regardless of muted oil earnings and ongoing international uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, showing a durable nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

The latest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic need and a broadly consistent international backdrop. The report highlights GCC customers as a major chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are expected to sustain a rise in consumer costs throughout the Gulf.

Credit growth is also forecast to stay raised as access to monetary services expands. With GCC reserve banks anticipated to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decrease, giving families and services even more impetus to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a mixed picture.

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This might weigh on firsthalf growth, especially for economies more based on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten and international demand enhances. Qatar, on the other hand, sticks out as a local outperformer, with substantial growths in gas production and exports anticipated to raise its overall economic efficiency.

Saudi Arabia's 2026 budget plan expects a 6 percent cut in capital expense as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending steps are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Despite shortterm dangers tied to oil prices and international need, the GCC's 2026 financial outlook is defined by strength in fundamentals: resilient consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these elements lining up, the region is preparing for among its most well balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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

We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth 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 region's continued development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outshine their international peers.

In December, the IMF further said that headline inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, close 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 expected to remain raised in the GCC region during 2026, as access to monetary services is expected to grow and loaning is predicted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by easing financial policy even more, which in turn will lower financial obligation maintenance costs and increase disposable earnings and demand," said the report.