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Service news and financial news, analysis, viewpoint 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 predicted to outperform its 2025 performance despite soft oil earnings 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 percent in 2025, showing a durable nonenergy sector, strong consumer dynamics, and slowly improving oil output.

The latest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly constant international backdrop. The report highlights GCC consumers as a major motorist of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are expected to fuel a surge in customer spending across the Gulf.

Credit development is also anticipated to remain elevated as access to financial services widens. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decline, giving households and businesses further impetus to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a blended image.

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This could weigh on firsthalf growth, particularly for economies more based on oil extraction. However, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and worldwide need improves. Qatar, on the other hand, sticks out as a regional outperformer, with substantial expansions in gas production and exports expected to raise its total financial performance.

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. Nevertheless, the report notes that these cuts may not materialise totally if countercyclical costs procedures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm threats connected to oil costs and international demand, the GCC's 2026 economic outlook is specified by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these factors aligning, the region is preparing for among its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resistant in 2026, driven by strong domestic demand and a broadly consistent global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

We expect GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said 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 ongoing progress towards diversity. 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 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 development is expected to stay elevated in the GCC region throughout 2026, as access to monetary services is expected to grow and loaning is projected to be supported by further cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the US Federal Reserve by reducing financial policy even more, which in turn will decrease financial obligation servicing expenses and improve disposable earnings and need," said the report.