Navigating the Next GCC Business Environment

Company news and monetary news, analysis, opinion and data covering the six 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 speed up in 2026, with the area projected to exceed its 2025 performance despite muted oil incomes and ongoing global uncertainties. According to a brand-new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 percent in 2025, showing a resistant nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.

But the latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic demand and a broadly constant international backdrop. The report highlights GCC consumers as a significant chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to fuel a rise in customer spending throughout the Gulf.

Credit growth is likewise anticipated to remain elevated as access to monetary services expands. With GCC reserve banks expected to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decline, giving homes and services even more inspiration to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a combined image.

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This could weigh on firsthalf growth, especially for economies more depending on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and international demand improves. Qatar, meanwhile, stands apart as a local outperformer, with significant growths in gas production and exports anticipated to lift its total economic efficiency.

Saudi Arabia's 2026 budget plan expects a 6 percent cut in capital expense as the kingdom aims to narrow its financial deficit by two percentage points. The report keeps in mind that these cuts may not materialise completely if countercyclical spending procedures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development programs.

In spite of shortterm threats connected to oil costs and international demand, the GCC's 2026 economic outlook is specified by strength in basics: resilient customers, robust nonenergy sectors, improving oil dynamics, and tactical fiscal preparation. With these factors lining up, the region is getting ready for among its most balanced periods of growth recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain resilient in 2026, driven by strong domestic need and a broadly stable global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic item of the GCC region is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

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 development in the region is set to accelerate to 4.3 percent by 2027, driven by expanding 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 progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their international peers. Oxford Economics stated that low inflation has actually assisted safeguard growth in genuine disposable income, which has actually likewise been supported by strong need and really low unemployment rates."We do not imagine any let-up, as federal governments continue to promote greater foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF even more stated that heading inflation is anticipated to stay listed 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 development is expected to stay raised in the GCC area during 2026, as access to monetary services is expected to grow and loaning is forecasted to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the US Federal Reserve by easing financial policy further, which in turn will lower debt maintenance expenses and enhance non reusable income and need," said the report.