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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 speed up in 2026, with the area forecasted to outshine its 2025 efficiency despite soft oil revenues and ongoing global unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer dynamics, and gradually improving oil output.

However the most recent forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly constant global background. The report highlights GCC customers as a significant chauffeur of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are expected to sustain a rise in customer costs throughout the Gulf.

Credit development is likewise forecast to stay elevated as access to financial services expands. With GCC reserve banks anticipated to follow anticipated United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are most likely to decrease, providing families and organizations even more incentive to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a combined photo.

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This could weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten and worldwide demand improves. Qatar, on the other hand, stands apart as a local outperformer, with considerable expansions in gas production and exports anticipated to lift its overall economic efficiency.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise fully if countercyclical costs steps are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Regardless of shortterm threats connected to oil prices and worldwide need, the GCC's 2026 economic outlook is defined by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these factors lining up, the region is getting ready for among its most balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional 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 latest report, Oxford Economics highlighted that the genuine gross domestic product of the GCC area is expected to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

United States trade policy under President Donald Trump has had no notable effect on regional growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "Meanwhile, oil production has actually gradually increased, supplying a boost to the area's economies. We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development 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 area's continued development toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to surpass their international peers.

In December, the IMF even more stated that headline 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 somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay elevated in the GCC region throughout 2026, as access to monetary services is anticipated to grow and lending is projected to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the US Federal Reserve by alleviating monetary policy even more, which in turn will decrease financial obligation maintenance expenses and improve disposable earnings and demand," stated the report.