Industrial Excellence: a Key Driver for 2026 Growth

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

ANSR July GCC PRs 50DR+

Financial growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to surpass its 2025 performance despite muted oil earnings and continuous worldwide unpredictabilities. According to a new Oxford Economics research study rundown, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and gradually improving oil output.

The most current projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic demand and a broadly steady worldwide background. The report highlights GCC consumers as a significant chauffeur of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to fuel a rise in customer costs throughout the Gulf.

Credit development is also forecast to remain elevated as access to financial services expands. With GCC central banks expected to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are most likely to decrease, providing homes and businesses 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 image.

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This could weigh on firsthalf development, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand enhances. Qatar, meanwhile, stands out as a local outperformer, with significant expansions in gas production and exports expected to lift its overall economic efficiency.

Saudi Arabia's 2026 budget prepares for a 6 per cent cut in capital expenditure as the kingdom intends to narrow its financial deficit by two percentage points. The report keeps in mind that these cuts might not materialise fully if countercyclical spending measures are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm risks connected to oil prices and international demand, the GCC's 2026 financial outlook is defined by strength in basics: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial planning. With these factors lining up, the region is getting ready for among its most well balanced periods of growth recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resilient in 2026, driven by strong domestic need and a broadly constant global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC area is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

We expect GCC growth will increase 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 speed up 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 region's continued development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to exceed their international peers. Oxford Economics said that low inflation has actually assisted safeguard growth in genuine non reusable earnings, which has actually likewise been supported by strong need and really low unemployment rates."We do not visualize any let-up, as federal governments continue to promote higher foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further stated that headline inflation is anticipated to remain 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 growth is anticipated to remain elevated in the GCC region throughout 2026, as access to financial services is anticipated to grow and loaning is predicted to be supported by additional cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the US Federal Reserve by alleviating financial policy even more, which in turn will reduce financial obligation servicing expenses and increase non reusable income and need," said the report.