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Company news and financial news, analysis, viewpoint and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area forecasted to surpass its 2025 efficiency regardless of muted oil earnings and ongoing global uncertainties. According to a new Oxford Economics research study rundown, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resilient nonenergy sector, strong customer characteristics, and gradually improving oil output.
The latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly constant worldwide background. The report highlights GCC consumers as a major driver of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to sustain a rise in consumer spending throughout the Gulf.
Credit development is likewise anticipated to remain raised as access to financial services expands. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decrease, providing homes and organizations even more impetus to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a blended picture.
This could weigh on firsthalf development, especially for economies more based on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and global need improves. Qatar, on the other hand, stands out as a local outperformer, with substantial growths in gas production and exports expected to raise its total financial efficiency.
Saudi Arabia's 2026 budget plan prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by two portion points. The report keeps in mind that these cuts may not materialise fully if countercyclical costs 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.
In spite of shortterm risks tied to oil costs and international demand, the GCC's 2026 financial outlook is defined by strength in basics: resilient consumers, robust nonenergy sectors, improving oil dynamics, and strategic fiscal preparation. With these aspects lining up, the area 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.
RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resilient in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gross domestic item 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 growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth in the area is set to accelerate to 4.3 percent by 2027, driven by expanding non-oil sectors.
Non-oil activities accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued progress toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outperform their international peers.
In December, the IMF further stated that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC region during 2026, as access to monetary services is anticipated to grow and loaning is projected to be supported by additional cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the US Federal Reserve by alleviating financial policy further, which in turn will lower debt servicing costs and increase disposable earnings and need," said the report.
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