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Business news and monetary news, analysis, opinion and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Financial growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to outshine its 2025 performance in spite of muted oil revenues and ongoing worldwide unpredictabilities. According to a new Oxford Economics research briefing, GCC GDP development is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong customer dynamics, and slowly improving oil output.

But the most recent projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly consistent global background. 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 real disposable incomes are anticipated to fuel a surge in customer costs throughout the Gulf.

Credit growth is also forecast to remain raised as access to monetary services broadens. With GCC main banks anticipated to follow expected 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 impetus to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a mixed picture.

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This might weigh on firsthalf development, especially for economies more reliant on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international need improves. Qatar, meanwhile, stands apart as a local outperformer, with substantial growths in gas production and exports expected to raise its total financial efficiency.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital expenditure as the kingdom aims to narrow its financial deficit by two percentage points. The report notes that these cuts may not materialise completely if countercyclical spending measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Despite shortterm dangers tied to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in basics: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these elements aligning, the region is getting ready for among its most well balanced periods of expansion recently 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 demand and a broadly steady worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the predicted 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 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform 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 slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay elevated in the GCC region during 2026, as access to financial services is anticipated to grow and lending is projected to be supported by more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the United States Federal Reserve by alleviating monetary policy even more, which in turn will reduce financial obligation servicing costs and enhance non reusable income and demand," stated the report.