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Business news and monetary 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 across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region forecasted to outshine its 2025 performance regardless of soft oil earnings and continuous international uncertainties. According to a new Oxford Economics research briefing, GCC GDP development is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually improving oil output.

The newest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly stable worldwide backdrop. The report highlights GCC consumers as a significant motorist of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to sustain a surge in customer spending across the Gulf.

Credit growth is also anticipated to remain raised as access to monetary services widens. With GCC reserve banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are likely to decrease, providing homes and companies further incentive to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended image.

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This might weigh on firsthalf growth, particularly for economies more based on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and international need improves. Qatar, meanwhile, stands apart as a local outperformer, with significant expansions in gas production and exports expected to lift its total economic efficiency.

Saudi Arabia's 2026 spending plan expects a 6 per cent cut in capital expense as the kingdom aims to narrow its financial deficit by 2 percentage points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending procedures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development agendas.

In spite of shortterm risks connected to oil costs and international demand, the GCC's 2026 economic outlook is specified by strength in basics: durable consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these factors aligning, the area is preparing for one of its most well balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are anticipated to stay resilient in 2026, driven by strong domestic demand and a broadly stable international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is expected to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has had no noteworthy effect on regional growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has actually gradually increased, providing an increase to the area's economies. We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated 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 region's ongoing progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to surpass their global peers.

In December, the IMF further said that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near 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 anticipated to remain raised in the GCC area throughout 2026, as access to financial services is anticipated to grow and lending is forecasted to be supported by additional cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the United States Federal Reserve by alleviating monetary policy even more, which in turn will reduce debt maintenance costs and increase disposable earnings and need," stated the report.