Predicting the Next Middle East Business Landscape

Organization news and financial news, analysis, opinion and data 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 accelerate in 2026, with the area predicted to outperform its 2025 performance regardless of soft oil incomes and ongoing global uncertainties. According to a brand-new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.

However the latest projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly steady worldwide backdrop. The report highlights GCC consumers as a significant driver of the area's financial efficiency 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 likewise forecast to stay elevated as access to financial services broadens. With GCC reserve banks expected to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decline, giving households and businesses even more incentive to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a combined picture.

Driving Dubai Industrial Growth through Innovation

This could weigh on firsthalf growth, particularly for economies more based on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and worldwide demand improves. Qatar, meanwhile, stands out as a regional outperformer, with significant expansions in gas production and exports anticipated to lift its overall financial efficiency.

Saudi Arabia's 2026 budget expects a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by two portion points. The report notes that these cuts might not materialise fully if countercyclical costs 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.

Despite shortterm threats connected to oil costs and international demand, the GCC's 2026 financial outlook is specified by strength in fundamentals: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these aspects lining up, the region is preparing for among its most balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

Predicting the 2026 GCC Corporate Environment

RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic need and a broadly consistent worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic product of the GCC region is anticipated 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 significant influence on local growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has actually slowly increased, supplying an increase to the region's economies. We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial development in the area is set to accelerate 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 region's ongoing development towards diversity. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their worldwide peers.

In December, the IMF further stated that heading inflation is anticipated to remain 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 growth is anticipated to stay elevated in the GCC region throughout 2026, as access to monetary services is expected to grow and loaning is projected to be supported by more cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by reducing financial policy further, which in turn will decrease financial obligation servicing costs and improve non reusable earnings and need," said the report.