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Organization news and financial news, analysis, viewpoint 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 forecasted to outshine its 2025 efficiency in spite of muted oil incomes and continuous worldwide unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

However the most recent projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly consistent global backdrop. The report highlights GCC consumers as a significant motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are anticipated to fuel a rise in consumer costs across the Gulf.

Credit growth is also anticipated to stay raised as access to monetary services widens. With GCC reserve banks expected to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decrease, offering homes and companies even more inspiration to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a mixed picture.

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This might weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and global demand enhances. Qatar, on the other hand, sticks out as a local outperformer, with significant growths in gas production and exports expected to raise its overall economic performance.

Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 percentage points. Nevertheless, the report notes that these cuts might not materialise completely if countercyclical spending measures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm risks connected to oil costs and global demand, the GCC's 2026 economic outlook is specified by strength in basics: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial preparation. With these aspects lining up, the region is getting ready for one of its most well balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resistant 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 product of the GCC region is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

US trade policy under President Donald Trump has had no significant effect on local development, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has actually slowly increased, supplying a boost to the region'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 stated that financial growth in the area is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to exceed their international peers.

In December, the IMF further said 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 a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay elevated in the GCC area throughout 2026, as access to financial services is anticipated to grow and loaning is forecasted to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy further, which in turn will decrease financial obligation maintenance costs and increase disposable earnings and need," said the report.