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Business news and financial news, analysis, opinion 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 outperform its 2025 performance regardless of soft oil incomes and ongoing international uncertainties. According to a brand-new Oxford Economics research study briefing, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 percent in 2025, showing a durable nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

The latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly constant global backdrop. The report highlights GCC consumers as a significant driver of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are expected to fuel a surge in customer spending throughout the Gulf.

Credit growth is likewise anticipated to stay raised as access to financial services widens. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decline, giving homes and services even more inspiration to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a mixed image.

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This could weigh on firsthalf growth, particularly for economies more reliant on oil extraction. However, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and international need enhances. Qatar, meanwhile, stands out as a regional outperformer, with substantial expansions in gas production and exports anticipated to raise its overall financial performance.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by two portion points. The report notes that these cuts may not materialise completely if countercyclical costs procedures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development programs.

Regardless of shortterm dangers connected to oil rates and global need, the GCC's 2026 economic outlook is defined by strength in fundamentals: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal planning. With these aspects lining up, the region is getting ready for one of its most balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP growth.

Reviewing 2026 GCC Research for Future Growth

RIYADH: Gulf Cooperation Council regional economies are expected to stay durable in 2026, driven by strong domestic demand and a broadly stable international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC area is expected to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has had no noteworthy effect on regional growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It added: "Meanwhile, oil production has gradually increased, supplying an increase to the area's economies. 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 economic growth in the region is set to accelerate 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 progress toward diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to outshine their worldwide peers.

In December, the IMF further stated that headline inflation is expected to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 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 expected to remain elevated in the GCC region during 2026, as access to monetary services is anticipated to grow and loaning is forecasted to be supported by further cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the United States Federal Reserve by easing monetary policy even more, which in turn will lower debt maintenance expenses and improve disposable income and demand," said the report.