Navigating the Next Middle East Business Environment

Company news and financial news, analysis, opinion and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region forecasted to exceed its 2025 performance despite soft oil revenues and ongoing global uncertainties. According to a brand-new Oxford Economics research briefing, GCC GDP development is anticipated to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and gradually improving oil output.

The newest projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly stable international backdrop. The report highlights GCC customers as a major motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a surge in consumer spending across the Gulf.

Credit development is also forecast to remain raised as access to monetary services widens. With GCC reserve banks anticipated to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are likely to decrease, giving households and services even more inspiration to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a mixed picture.

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This could weigh on firsthalf development, especially for economies more reliant on oil extraction. However, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and worldwide demand improves. Qatar, on the other hand, stands apart as a regional outperformer, with substantial growths in gas production and exports anticipated to raise its general financial efficiency.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 portion points. However, the report keeps in mind that these cuts may not materialise fully if countercyclical spending measures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Regardless of shortterm threats tied to oil prices and global demand, the GCC's 2026 financial outlook is defined by strength in principles: resistant customers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these aspects aligning, the region is getting ready for one of its most balanced durations of expansion in recent years anchored by a clear upward trajectory in GDP development.

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

We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial development 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 accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued progress toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to exceed their worldwide peers. Oxford Economics said that low inflation has assisted protect growth in genuine disposable earnings, which has actually likewise been supported by strong demand and very low joblessness rates."We do not imagine any let-up, as governments continue to press for higher foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF further stated that heading inflation is expected to stay listed below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to remain elevated in the GCC region throughout 2026, as access to monetary services is expected to grow and lending is projected to be supported by more 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 relieving monetary policy even more, which in turn will decrease debt servicing expenses and improve non reusable earnings and need," said the report.