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

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to outperform its 2025 efficiency despite muted oil earnings and continuous worldwide uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly improving oil output.

But the most current forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly consistent worldwide background. The report highlights GCC customers as a major chauffeur of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are expected to sustain a surge in customer costs across the Gulf.

Credit growth is also anticipated to remain raised as access to financial 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 most likely to decrease, providing families and companies further incentive to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a combined image.

Industrial Excellence: a Strategic Pillar for 2026 Success

This could weigh on firsthalf growth, particularly for economies more based on oil extraction. Nevertheless, 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, stands apart as a local outperformer, with substantial expansions in gas production and exports expected to raise its overall economic performance.

Saudi Arabia's 2026 spending plan expects a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by two portion points. However, the report notes that these cuts may not materialise fully if countercyclical spending procedures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm threats tied to oil prices and global need, the GCC's 2026 financial outlook is defined by strength in principles: durable customers, robust nonenergy sectors, improving oil characteristics, and tactical fiscal planning. With these elements lining up, the region is getting ready for among its most well balanced durations of expansion in recent years anchored by a clear upward trajectory in GDP development.

Driving Regional Industrial Expansion through Innovation

RIYADH: Gulf Cooperation Council regional economies are expected to remain durable in 2026, driven by strong domestic need and a broadly consistent international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic product of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the region 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 accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to exceed their international peers.

In December, the IMF further said that heading inflation is anticipated 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 remain raised in the GCC area during 2026, as access to financial services is expected to grow and financing is projected to be supported by more cuts in rate of interest."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 lower debt servicing costs and enhance disposable earnings and need," said the report.