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Business news and monetary news, analysis, opinion and data 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 accelerate in 2026, with the region forecasted to outperform its 2025 performance in spite of muted oil earnings and continuous worldwide uncertainties. According to a new Oxford Economics research study rundown, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong consumer dynamics, and slowly improving oil output.

However the most current projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly constant international backdrop. The report highlights GCC consumers as a major chauffeur of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to sustain a rise in customer costs throughout the Gulf.

Credit growth is also forecast to remain raised as access to monetary services broadens. With GCC central banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decline, providing households and businesses even more motivation to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a combined photo.

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This might weigh on firsthalf growth, particularly for economies more reliant on oil extraction. However, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and international need enhances. Qatar, on the other hand, stands apart as a regional outperformer, with significant expansions in gas production and exports anticipated to raise its overall financial performance.

Saudi Arabia's 2026 budget anticipates a 6 per cent cut in capital expense as the kingdom intends to narrow its financial deficit by two portion points. Nevertheless, the report notes that these cuts might not materialise completely if countercyclical spending procedures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

In spite of shortterm dangers tied to oil rates and worldwide need, the GCC's 2026 financial outlook is specified by strength in principles: resistant consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal preparation. With these elements lining up, the area is getting ready for among its most well balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resilient in 2026, driven by strong domestic need and a broadly constant international economy, according to an analysis. In its most current 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 projected 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 stated that economic development in the region is set to accelerate 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 region's ongoing progress toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to outperform their global peers. Oxford Economics said that low inflation has helped protect growth in real non reusable earnings, which has likewise been supported by strong need and extremely low unemployment rates."We do not picture any let-up, as federal governments continue to press for higher foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF even more said that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to remain raised in the GCC area during 2026, as access to financial services is expected to grow and lending is forecasted to be supported by more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC main banks are expected to follow the US Federal Reserve by alleviating monetary policy further, which in turn will lower debt maintenance costs and boost non reusable earnings and need," said the report.