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Company news and financial 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+

Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region forecasted to outperform its 2025 performance regardless of soft oil profits and ongoing global unpredictabilities. According to a new Oxford Economics research study rundown, GCC GDP development is anticipated to rise to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

The most current forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly consistent worldwide background. The report highlights GCC customers as a major chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are anticipated to sustain a rise in customer costs across the Gulf.

Credit development is also anticipated to stay raised as access to monetary services broadens. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are most likely to decrease, providing households and businesses even more inspiration to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a mixed image.

Emerging Future Trends Shaping the 2026 GCC Economy

This could weigh on firsthalf growth, especially for economies more reliant on oil extraction. Nevertheless, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and worldwide need enhances. Qatar, meanwhile, stands out as a local outperformer, with considerable growths in gas production and exports anticipated to raise its overall economic performance.

Saudi Arabia's 2026 budget plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by two percentage points. Nevertheless, the report notes that these cuts may not materialise fully if countercyclical spending procedures are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm threats connected to oil prices and global need, the GCC's 2026 economic outlook is specified by strength in principles: resilient consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these aspects lining up, the region is getting ready for one of its most well balanced periods of expansion in current years anchored by a clear upward trajectory in GDP growth.

Driving Dubai Industrial Growth through Innovation

RIYADH: Gulf Cooperation Council local economies are expected to remain resistant in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC region is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

US trade policy under President Donald Trump has had no noteworthy effect on regional development, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has actually slowly increased, providing a boost 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 said that financial development in the region 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 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 customers will be standout entertainers in 2026 and are anticipated to outperform their international peers. Oxford Economics stated that low inflation has actually helped secure development in real non reusable earnings, which has also been supported by strong demand and extremely low unemployment rates."We do not envision any let-up, as federal governments continue to promote greater foreign direct investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF even more stated that heading 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 development is expected to stay raised in the GCC area throughout 2026, as access to financial services is expected to grow and financing is forecasted to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by easing monetary policy even more, which in turn will reduce debt servicing expenses and enhance disposable income and need," stated the report.