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Business news and monetary 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 accelerate in 2026, with the region forecasted to outshine its 2025 performance despite muted oil profits and continuous worldwide unpredictabilities. According to a new Oxford Economics research study instruction, GCC GDP development is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

The newest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly steady 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 genuine non reusable incomes are expected to fuel a rise in consumer spending throughout the Gulf.

Credit growth is likewise 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 costs are likely to decrease, giving families and services further impetus to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a combined image.

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This could weigh on firsthalf growth, especially for economies more reliant on oil extraction. Nevertheless, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and global need improves. Qatar, on the other hand, stands apart as a local outperformer, with significant growths in gas production and exports anticipated to lift its overall economic efficiency.

Saudi Arabia's 2026 budget prepares for a 6 per cent cut in capital investment 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 procedures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Regardless of shortterm risks tied to oil prices and worldwide need, the GCC's 2026 economic outlook is defined by strength in principles: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical fiscal preparation. With these aspects aligning, the region is getting ready for one of its most balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly stable worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real 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 increase 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 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 area's continued progress toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to exceed their worldwide peers.

In December, the IMF even more said that heading inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 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 raised in the GCC region during 2026, as access to monetary services is anticipated to grow and lending is predicted to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy further, which in turn will reduce debt maintenance expenses and increase disposable income and demand," said the report.