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

Financial growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region projected to outshine its 2025 efficiency despite soft oil profits and ongoing worldwide uncertainties. According to a new Oxford Economics research study instruction, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer dynamics, and gradually enhancing oil output.
But the current forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly constant international background. The report highlights GCC consumers as a major motorist of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are expected to fuel a rise in customer costs throughout the Gulf.
Strategic Strategy for Middle East SuccessCredit growth is also anticipated to remain elevated as access to monetary services widens. With GCC reserve banks expected to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decline, giving households and companies further impetus to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a combined image.
This could weigh on firsthalf development, especially for economies more based on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and global demand enhances. Qatar, on the other hand, sticks out as a local outperformer, with substantial growths in gas production and exports anticipated to lift its general financial efficiency.
Saudi Arabia's 2026 budget plan expects a 6 percent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending steps are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.
Regardless of shortterm threats connected to oil costs and global demand, the GCC's 2026 economic outlook is specified by strength in principles: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal planning. With these factors lining up, the area is getting ready for one of its most balanced durations of growth in recent years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.
United States 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 gradually increased, offering 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 stated that financial growth in the region is set to speed up to 4.3 percent by 2027, driven by broadening non-oil sectors.

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 continued development toward diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their international peers.
In December, the IMF further stated 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 somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to stay elevated in the GCC area throughout 2026, as access to financial services is expected to grow and lending is projected to be supported by additional cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by reducing financial policy further, which in turn will decrease debt servicing costs and increase disposable earnings and demand," stated the report.
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