Predicting the Next Middle East Business Landscape

Business news and monetary news, analysis, viewpoint and data covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area predicted to outperform its 2025 performance regardless of soft oil incomes and ongoing international uncertainties. According to a new Oxford Economics research study instruction, GCC GDP development is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

The latest forecasts suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic need and a broadly constant international backdrop. The report highlights GCC consumers as a major driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to sustain a rise in consumer spending throughout the Gulf.

Credit growth is likewise anticipated to remain elevated as access to monetary services broadens. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are likely to decrease, giving homes and services further incentive to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a mixed image.

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This could weigh on firsthalf development, especially for economies more based on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and international need enhances. Qatar, on the other hand, stands out as a regional outperformer, with considerable expansions in gas production and exports expected to lift its general economic efficiency.

Saudi Arabia's 2026 spending plan anticipates a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 portion points. The report notes that these cuts might not materialise totally if countercyclical spending measures are activated to support development. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Despite shortterm risks connected to oil prices and international need, the GCC's 2026 financial outlook is defined by strength in principles: durable customers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these aspects lining up, the region is preparing for among its most well balanced durations of growth in the last few years anchored by a clear upward trajectory in GDP growth.

Emerging Future Shifts Shaping the 2026 Regional Economy

RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resilient 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 product of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial 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 region's continued development towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to surpass their global peers.

In December, the IMF further stated that heading inflation is expected to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 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 raised in the GCC area throughout 2026, as access to financial services is expected to grow and financing is projected to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by easing financial policy further, which in turn will lower debt maintenance expenses and enhance non reusable earnings and demand," stated the report.