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Driving Regional Industrial Growth through Innovation

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Company news and financial news, analysis, opinion and statistics covering the six 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 accelerate in 2026, with the area forecasted to surpass its 2025 performance in spite of muted oil incomes and ongoing international uncertainties. According to a new Oxford Economics research instruction, 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 customer dynamics, and gradually improving oil output.

The newest projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic need and a broadly steady worldwide backdrop. The report highlights GCC customers as a significant motorist of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a surge in customer spending throughout the Gulf.

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Credit development is likewise forecast to stay raised as access to financial services broadens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are likely to decrease, giving families and organizations further motivation to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a blended picture.

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This could weigh on firsthalf development, especially for economies more depending on oil extraction. However, Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and global demand enhances. Qatar, meanwhile, sticks out as a regional outperformer, with significant growths in gas production and exports anticipated to lift its general financial performance.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital expense as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending procedures are activated to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm risks connected to oil costs and worldwide need, the GCC's 2026 economic outlook is defined by strength in fundamentals: resilient consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial preparation. With these aspects aligning, the region is getting ready for one of its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resilient in 2026, driven by strong domestic need and a broadly stable worldwide economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic product 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 notable effect on regional development, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It added: "Meanwhile, oil production has actually gradually increased, providing an increase to the region's economies. We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development in the area is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

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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 toward diversification. 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 stated that heading inflation is expected to stay 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 development is expected to remain raised in the GCC region during 2026, as access to financial services is expected to grow and lending is predicted to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the United States Federal Reserve by alleviating financial policy further, which in turn will lower financial obligation servicing expenses and enhance disposable earnings and demand," said the report.

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