Navigating the Next Middle East Corporate Environment

Organization news and monetary news, analysis, opinion 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 area forecasted to outshine its 2025 performance regardless of soft oil earnings and ongoing international unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP development is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer characteristics, and gradually improving oil output.

However the latest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic demand and a broadly steady worldwide backdrop. The report highlights GCC consumers as a significant motorist of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to sustain a rise in consumer costs across the Gulf.

Credit growth is also forecast to remain raised as access to monetary services broadens. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decrease, providing families and businesses even more incentive to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a combined image.

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This might weigh on firsthalf development, especially for economies more depending on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten and global demand enhances. Qatar, on the other hand, stands out as a local outperformer, with considerable growths in gas production and exports expected to lift its general economic performance.

Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital investment as the kingdom aims to narrow its fiscal deficit by two percentage points. However, the report notes that these cuts might not materialise completely if countercyclical costs measures are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Regardless of shortterm risks tied to oil rates and international need, the GCC's 2026 economic outlook is defined by strength in basics: durable customers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal preparation. With these factors aligning, the region is getting ready for one of its most 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 anticipated to stay durable in 2026, driven by strong domestic demand and a broadly consistent international economy, according to an analysis. In its newest report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is anticipated to expand 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 said that economic growth in the area 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing development towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their global peers.

In December, the IMF even more stated that heading inflation is expected to stay 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 remain elevated in the GCC region during 2026, as access to financial services is expected to grow and loaning is forecasted to be supported by more cuts in interest rates."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the US Federal Reserve by relieving monetary policy even more, which in turn will lower financial obligation maintenance costs and boost disposable earnings and demand," stated the report.