Accelerating Regional Corporate Expansion through Innovation

Business news and financial 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 across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area forecasted to outshine its 2025 efficiency despite muted oil earnings and continuous international unpredictabilities. According to a new Oxford Economics research briefing, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

The latest projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic need and a broadly consistent worldwide background. The report highlights GCC customers as a significant chauffeur of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are anticipated to fuel a rise in consumer spending throughout the Gulf.

Credit growth is likewise forecast to remain elevated as access to monetary services broadens. With GCC reserve banks anticipated to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decline, providing households and companies even more incentive to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a blended photo.

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This might weigh on firsthalf growth, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and worldwide need enhances. Qatar, meanwhile, stands out as a regional outperformer, with substantial growths in gas production and exports anticipated to lift its total financial efficiency.

Saudi Arabia's 2026 spending plan anticipates a 6 percent cut in capital expense as the kingdom aims to narrow its fiscal deficit by 2 percentage points. However, the report notes that these cuts might not materialise totally if countercyclical costs steps are activated to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm dangers connected to oil costs and international need, the GCC's 2026 financial outlook is specified by strength in basics: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical fiscal planning. With these aspects lining up, the area is preparing for one of its most well balanced periods of growth 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 expected to remain resilient in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

We anticipate GCC development 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 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 development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their worldwide peers. Oxford Economics said that low inflation has actually assisted secure development in real non reusable income, which has likewise been supported by strong demand and really low unemployment rates."We do not picture any let-up, as 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 said that heading 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 a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to remain elevated in the GCC region throughout 2026, as access to financial services is expected to grow and loaning is projected to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by alleviating monetary policy even more, which in turn will lower financial obligation maintenance expenses and increase non reusable earnings and demand," stated the report.