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Business news and monetary news, analysis, opinion and statistics covering the six 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 speed up in 2026, with the area forecasted to surpass its 2025 performance despite muted oil incomes and ongoing international unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP development is anticipated to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and slowly improving oil output.

The newest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly consistent global background. The report highlights GCC consumers as a major driver of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a rise in customer costs across the Gulf.

Credit development is likewise forecast to remain raised as access to financial services widens. With GCC reserve banks anticipated to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decline, giving families and organizations further incentive to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a combined picture.

Methods for Scaling Regional Operations in 2026

This could weigh on firsthalf development, particularly for economies more depending on oil extraction. However, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and worldwide need improves. Qatar, on the other hand, stands apart as a regional outperformer, with substantial expansions in gas production and exports anticipated to lift its overall economic efficiency.

Saudi Arabia's 2026 budget expects a 6 percent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by 2 portion points. The report notes that these cuts might not materialise totally if countercyclical costs measures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm risks connected to oil costs and international need, the GCC's 2026 economic outlook is defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial preparation. With these elements lining up, the region is getting ready for one of its most balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP growth.

Emerging Strategic Shifts Shaping the 2026 GCC Economy

RIYADH: Gulf Cooperation Council regional economies are expected to remain resistant in 2026, driven by strong domestic need and a broadly stable worldwide economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic growth in the area 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 continued progress towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to surpass their worldwide peers.

In December, the IMF further stated that headline inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, close to 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 during 2026, as access to monetary services is anticipated to grow and financing is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the United States Federal Reserve by relieving monetary policy even more, which in turn will lower debt maintenance costs and increase non reusable earnings and need," said the report.