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Company news and financial news, analysis, opinion and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Financial development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to surpass its 2025 efficiency despite muted oil incomes and continuous global uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resilient nonenergy sector, strong consumer characteristics, and gradually improving oil output.
The newest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly constant international background. The report highlights GCC customers as a significant chauffeur of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a surge in consumer costs throughout the Gulf.
Credit growth is also anticipated to stay raised as access to monetary services widens. With GCC reserve banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decrease, offering families and organizations further motivation to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a mixed photo.
This might weigh on firsthalf development, particularly for economies more reliant on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and global need enhances. Qatar, meanwhile, stands apart as a local outperformer, with considerable expansions in gas production and exports expected to raise its overall economic performance.
Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 percentage points. However, the report keeps in mind that these cuts might not materialise fully if countercyclical costs procedures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.
Regardless of shortterm dangers tied to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in basics: resistant consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial planning. With these elements aligning, the region is getting ready for one of its most well balanced durations of growth recently anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council local economies are anticipated to remain durable in 2026, driven by strong domestic need 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 region is expected 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 notable influence on local growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It included: "On the other hand, oil production has gradually increased, supplying a boost to the region's economies. We anticipate GCC growth will increase 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 speed up to 4.3 percent by 2027, driven by expanding non-oil sectors.
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 continued progress toward diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their global peers. Oxford Economics stated that low inflation has helped protect growth in genuine disposable income, which has actually likewise been supported by strong need and extremely low unemployment rates."We do not visualize any let-up, as governments continue to push for greater foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.
In December, the IMF further stated that headline inflation is anticipated to stay 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 remain elevated in the GCC area during 2026, as access to financial services is anticipated to grow and lending is predicted to be supported by more cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the US Federal Reserve by easing monetary policy even more, which in turn will reduce financial obligation maintenance expenses and boost disposable income and need," said the report.
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