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

ANSR July GCC PRs 50DR+

Financial development throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region forecasted to outshine its 2025 efficiency in spite of soft oil incomes and continuous global unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

But the latest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly consistent global backdrop. The report highlights GCC customers as a major motorist of the region's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to fuel a surge in consumer costs across the Gulf.

Credit development is also forecast to remain raised as access to financial services widens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decline, providing homes and businesses even more impetus to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a mixed image.

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This might weigh on firsthalf development, particularly for economies more dependent on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and worldwide demand enhances. Qatar, meanwhile, stands out as a local outperformer, with considerable growths in gas production and exports anticipated to lift its total economic performance.

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

In spite of shortterm dangers tied to oil costs and international demand, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, improving oil characteristics, and strategic fiscal planning. With these aspects lining up, the region is preparing for among its most well balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.

Predicting the 2026 Middle East Business Environment

RIYADH: Gulf Cooperation Council regional economies are expected to stay resistant in 2026, driven by strong domestic demand and a broadly consistent global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic growth in the area 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 represented 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to exceed their international peers. Oxford Economics said that low inflation has actually assisted safeguard development in genuine non reusable income, which has likewise been supported by strong need and really low unemployment rates."We do not imagine any let-up, as governments continue to promote higher foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF further stated that heading 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 slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to remain raised in the GCC region during 2026, as access to monetary services is expected to grow and financing is forecasted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by relieving monetary policy further, which in turn will lower financial obligation maintenance expenses and boost disposable income and demand," stated the report.