Operational Excellence: a Strategic Driver for 2026 Growth

Company news and financial news, analysis, viewpoint and data covering the 6 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 region projected to outperform its 2025 efficiency regardless of muted oil profits and ongoing international uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

The latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly constant global backdrop. The report highlights GCC customers as a major motorist 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 surge in customer spending across the Gulf.

Credit growth is also anticipated to stay raised as access to financial services broadens. With GCC main banks expected to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are most likely to decrease, providing families and companies further motivation to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a blended picture.

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This might weigh on firsthalf growth, particularly for economies more reliant on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and international need enhances. Qatar, on the other hand, sticks out as a regional outperformer, with substantial growths in gas production and exports expected to raise its total economic efficiency.

Saudi Arabia's 2026 spending plan expects a 6 percent cut in capital expenditure as the kingdom aims to narrow its financial deficit by 2 portion points. However, the report notes that these cuts may not materialise totally if countercyclical costs measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm dangers connected to oil prices and global need, the GCC's 2026 economic outlook is specified by strength in fundamentals: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial planning. With these factors aligning, the region is preparing for one of its most balanced periods of expansion in current years anchored by a clear upward trajectory in GDP growth.

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

United States trade policy under President Donald Trump has had no noteworthy impact on regional growth, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has gradually increased, providing an increase to the region's economies. We expect GCC development will increase 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 speed up 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing development towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their international peers. Oxford Economics said that low inflation has assisted protect development in real disposable earnings, which has also been supported by strong need and extremely low joblessness rates."We do not envision any let-up, as governments continue to push for higher foreign direct investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF further stated that heading inflation is expected to remain 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 growth is anticipated to stay raised in the GCC area during 2026, as access to financial services is expected to grow and lending is forecasted to be supported by additional cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy even more, which in turn will decrease financial obligation maintenance expenses and boost non reusable earnings and demand," said the report.