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Company 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+

Economic development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outshine its 2025 performance despite muted oil earnings and ongoing international uncertainties. According to a brand-new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and gradually improving oil output.

The newest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic need and a broadly stable global background. The report highlights GCC customers as a major driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to fuel a surge in consumer spending throughout the Gulf.

Credit growth is likewise anticipated to remain raised as access to financial services expands. With GCC main banks anticipated to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are likely to decline, providing homes and companies further impetus to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended photo.

Operational Excellence: a Key Driver for Regional Growth

This could weigh on firsthalf growth, especially for economies more reliant on oil extraction. However, Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and worldwide demand enhances. Qatar, on the other hand, stands out as a local outperformer, with considerable growths in gas production and exports expected to lift its overall financial efficiency.

Saudi Arabia's 2026 budget plan prepares for 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 growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm dangers tied to oil rates and international demand, the GCC's 2026 economic outlook is defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these factors lining up, the region is preparing for among its most well balanced periods of expansion recently anchored by a clear upward trajectory in GDP growth.

Predicting the Next GCC Business Environment

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

United States trade policy under President Donald Trump has actually had no significant influence on local growth, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has actually slowly increased, offering an increase to the area's economies. We expect GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic growth in the region 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 area's continued progress towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their global peers. Oxford Economics said that low inflation has assisted protect development in real disposable income, 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 promote higher 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 headline inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, near 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 area during 2026, as access to financial services is anticipated to grow and loaning is predicted to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC central banks are anticipated to follow the US Federal Reserve by alleviating financial policy further, which in turn will reduce debt servicing costs and increase disposable earnings and need," said the report.