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Service news and financial 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 throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to surpass its 2025 efficiency regardless of soft oil earnings and ongoing international uncertainties. According to a new Oxford Economics research instruction, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and gradually enhancing oil output.

But the current forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly steady international backdrop. The report highlights GCC consumers as a significant driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are expected to fuel a rise in consumer costs across the Gulf.

Credit development is also anticipated to remain raised as access to monetary services expands. 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 decrease, providing families and businesses further motivation to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended image.

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This might weigh on firsthalf growth, particularly for economies more depending on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and international demand improves. Qatar, on the other hand, stands out as a local outperformer, with significant growths in gas production and exports anticipated to lift its general financial efficiency.

Saudi Arabia's 2026 budget plan prepares for a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by two percentage points. However, the report keeps in mind that these cuts might not materialise totally if countercyclical spending procedures are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

In spite of shortterm dangers tied to oil prices and international demand, the GCC's 2026 financial outlook is defined by strength in principles: durable consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic fiscal preparation. With these factors lining up, the area is preparing for one of its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic need and a broadly steady global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gdp of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has actually had no notable influence on regional growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It added: "On the other hand, oil production has slowly increased, offering an increase to the area's economies. 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 financial growth in the area is set to speed up 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued progress towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outperform their international peers. Oxford Economics said that low inflation has assisted protect development in real disposable earnings, which has actually likewise been supported by strong demand and very low joblessness rates."We do not visualize any let-up, as federal governments continue to press for higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further stated that headline inflation is expected to stay 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 growth is anticipated to stay raised in the GCC area during 2026, as access to financial services is expected to grow and lending is projected to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC central banks are anticipated to follow the United States Federal Reserve by relieving monetary policy even more, which in turn will lower debt maintenance expenses and boost disposable earnings and demand," stated the report.