Driving Regional Industrial Expansion through Innovation

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 growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to exceed its 2025 performance regardless of soft oil earnings and ongoing international unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer dynamics, and gradually improving oil output.

But the most recent forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly constant international background. The report highlights GCC consumers as a major driver of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to sustain a surge in customer spending throughout the Gulf.

Credit growth is also anticipated to stay elevated as access to monetary services expands. With GCC main banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decline, giving families and services even more incentive to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a combined image.

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This could weigh on firsthalf development, especially for economies more based on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand improves. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports anticipated to raise its overall financial performance.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 portion points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending steps are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

In spite of shortterm dangers tied to oil rates and international demand, the GCC's 2026 financial outlook is specified by strength in principles: durable customers, robust nonenergy sectors, improving oil characteristics, and strategic financial planning. With these elements lining up, the region is preparing for among 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 regional economies are expected to remain resistant 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 genuine gdp of the GCC area is expected to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the region is set to accelerate 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 region's ongoing development towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outshine their global peers.

In December, the IMF even more stated that headline inflation is anticipated to stay listed 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 development is anticipated to stay elevated in the GCC area during 2026, as access to monetary services is expected to grow and financing is projected to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC central banks are expected to follow the US Federal Reserve by alleviating monetary policy further, which in turn will reduce debt maintenance expenses and improve non reusable income and demand," said the report.