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Business news and monetary news, analysis, opinion 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 across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area forecasted to outperform its 2025 performance regardless of soft oil profits and ongoing global uncertainties. According to a new Oxford Economics research instruction, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and slowly improving oil output.

But the newest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly consistent international background. The report highlights GCC customers as a major motorist of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are expected to sustain a rise in consumer spending across the Gulf.

Credit development is also forecast to remain elevated as access to financial services expands. With GCC central banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are most likely to decrease, giving homes and services even more motivation to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook provides a mixed photo.

Operational Excellence: a Strategic Pillar for Regional Growth

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

Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by two portion points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending steps are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development programs.

Despite shortterm threats connected to oil costs and global need, the GCC's 2026 financial outlook is defined by strength in fundamentals: resilient customers, robust nonenergy sectors, improving oil dynamics, and strategic financial preparation. With these elements aligning, the area is preparing for among its most balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

Predicting the Next Middle East Corporate Landscape

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

We anticipate GCC development will rise 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 broadening 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 region's continued progress toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to exceed their international peers.

In December, the IMF further stated that heading inflation is anticipated to remain listed below 2 percent in Bahrain, Oman, and Qatar, near to 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 stay elevated in the GCC region throughout 2026, as access to financial services is anticipated to grow and financing is projected to be supported by additional cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the United States Federal Reserve by alleviating financial policy even more, which in turn will lower financial obligation maintenance costs and enhance disposable income and demand," stated the report.