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Service news and monetary news, analysis, viewpoint and data covering the six 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 predicted to exceed its 2025 efficiency regardless of muted oil revenues and ongoing international unpredictabilities. According to a brand-new Oxford Economics research study instruction, GCC GDP development is expected to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

However the current projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic need and a broadly steady global background. The report highlights GCC customers as a significant motorist of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a rise in customer costs across the Gulf.

Credit development is also forecast to stay elevated as access to financial services widens. With GCC reserve banks expected to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are most likely to decrease, providing households and companies further inspiration to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a blended photo.

Operational Excellence: a Strategic Pillar for 2026 Success

This could weigh on firsthalf growth, particularly for economies more dependent on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and global need improves. Qatar, on the other hand, sticks out as a regional outperformer, with considerable expansions in gas production and exports anticipated to lift its total economic performance.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by two percentage points. However, the report keeps in mind that these cuts may not materialise totally if countercyclical costs measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm risks tied to oil prices and international need, the GCC's 2026 financial outlook is defined by strength in principles: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic fiscal planning. With these factors lining up, the region is preparing for among its most balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP development.

Emerging Future Trends Defining the 2026 Regional Economy

RIYADH: Gulf Cooperation Council local economies are expected to remain resilient in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has had no significant influence on local development, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has gradually increased, offering an increase to the region'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 stated that economic development in the region is set to speed up 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 area's ongoing development towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to surpass their international peers.

In December, the IMF further stated that heading inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, near 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 anticipated to remain raised in the GCC area throughout 2026, as access to monetary 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 reserve banks are anticipated to follow the United States Federal Reserve by easing monetary policy further, which in turn will decrease financial obligation maintenance expenses and improve disposable income and need," stated the report.