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Organization news and financial 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 growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to surpass its 2025 efficiency in spite of soft oil revenues and continuous international unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer characteristics, and gradually improving oil output.

But the most current forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly constant international background. The report highlights GCC customers as a significant motorist of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to sustain a rise in customer spending across the Gulf.

Credit growth is likewise anticipated to stay raised as access to monetary services expands. With GCC reserve banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decline, providing households and organizations even more incentive to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a combined image.

Predicting the 2026 Middle East Business Environment

This could weigh on firsthalf development, particularly for economies more reliant on oil extraction. However, Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten and international demand improves. Qatar, on the other hand, stands out as a regional outperformer, with considerable expansions in gas production and exports expected to lift its total financial efficiency.

Saudi Arabia's 2026 budget prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 percentage points. Nevertheless, the report keeps in mind that these cuts might not materialise completely if countercyclical spending steps are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.

Despite shortterm risks connected to oil prices and international demand, the GCC's 2026 economic outlook is defined by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial planning. With these elements lining up, the area is preparing for one of its most balanced durations of growth in the last few years anchored by a clear upward trajectory in GDP growth.

Accelerating Regional Industrial Expansion through Innovation

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

We anticipate GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic growth in the region 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 towards diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outshine their worldwide peers.

In December, the IMF further said that headline inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to stay raised in the GCC area throughout 2026, as access to financial services is anticipated to grow and loaning is predicted to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC main banks are anticipated to follow the US Federal Reserve by alleviating monetary policy even more, which in turn will decrease financial obligation servicing costs and boost non reusable income and need," stated the report.