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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 throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to outshine its 2025 efficiency regardless of muted oil incomes and ongoing 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 percent in 2025, reflecting a resilient nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.

The newest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly consistent international background. The report highlights GCC customers as a significant motorist of the region's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are anticipated to sustain a surge in consumer costs throughout the Gulf.

Credit growth is also anticipated to remain elevated as access to monetary services broadens. With GCC main banks expected to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decrease, providing homes and companies further incentive to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended image.

Emerging Future Shifts Defining the 2026 GCC Economy

This could weigh on firsthalf growth, 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 stocks tighten up and global demand improves. Qatar, on the other hand, stands apart as a regional outperformer, with considerable expansions in gas production and exports expected to raise its general economic efficiency.

Saudi Arabia's 2026 spending plan expects a 6 per cent cut in capital expense as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise fully if countercyclical spending measures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.

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

Operational Excellence: a Key Driver for Regional Success

RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resilient in 2026, driven by strong domestic need and a broadly consistent global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic item 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 development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the region is set to speed up 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 towards 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 disposable earnings, which has also been supported by strong demand and very low joblessness rates."We do not envision any let-up, as governments continue to press for greater foreign direct 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 remain below 2 percent in Bahrain, Oman, and Qatar, near 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 expected to grow and loaning is forecasted 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 US Federal Reserve by reducing financial policy even more, which in turn will reduce debt maintenance costs and boost non reusable income and demand," stated the report.