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

ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to outshine its 2025 performance regardless of soft oil earnings and continuous worldwide unpredictabilities. According to a new Oxford Economics research study instruction, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

The newest projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic demand and a broadly steady global background. The report highlights GCC consumers as a significant driver of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are expected to sustain a rise in consumer spending across the Gulf.

Credit growth is likewise anticipated to remain raised as access to monetary services broadens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decrease, giving households and services even more motivation to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a mixed image.

Navigating the 2026 GCC Business Environment

This might weigh on firsthalf development, particularly for economies more based on oil extraction. Nevertheless, Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and global demand improves. Qatar, on the other hand, sticks out as a regional outperformer, with significant growths in gas production and exports anticipated to lift its overall economic performance.

Saudi Arabia's 2026 budget anticipates a 6 per cent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by two percentage points. However, the report notes that these cuts might not materialise completely if countercyclical spending measures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

In spite of shortterm dangers tied to oil costs and global demand, the GCC's 2026 financial outlook is defined by strength in fundamentals: resilient customers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these aspects aligning, the area is getting ready for one of its most balanced periods of expansion in recent years anchored by a clear upward trajectory in GDP development.

Operational Excellence: a Strategic Driver for 2026 Growth

RIYADH: Gulf Cooperation Council regional 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 newest report, Oxford Economics highlighted that the genuine gdp of the GCC area is expected to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic 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 represented 73.2 percent of overall 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 worldwide peers. Oxford Economics stated that low inflation has assisted secure development in genuine non reusable earnings, which has likewise been supported by strong need and extremely low unemployment rates."We do not visualize any let-up, as governments continue to push for greater foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further said that heading inflation is anticipated to remain listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to remain raised in the GCC area throughout 2026, as access to monetary services is expected to grow and financing is forecasted to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by easing financial policy even more, which in turn will reduce debt servicing expenses and improve non reusable earnings and need," said the report.