The Strategic Benefits of Advanced Market Research

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

ANSR July GCC PRs 50DR+

Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to exceed its 2025 performance regardless of soft oil incomes and ongoing global unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly improving oil output.

But the newest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic demand and a broadly stable worldwide background. The report highlights GCC customers as a significant chauffeur of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to sustain a surge in customer spending throughout the Gulf.

Credit growth is likewise forecast to stay elevated as access to monetary services expands. With GCC main banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are likely to decrease, providing families and businesses further inspiration to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended image.

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This might weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and worldwide need improves. Qatar, on the other hand, sticks out as a regional outperformer, with considerable growths in gas production and exports expected to lift its general financial efficiency.

Saudi Arabia's 2026 budget plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its financial deficit by 2 percentage points. However, the report notes that these cuts might not materialise fully if countercyclical spending procedures are activated to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm risks tied to oil rates and international need, the GCC's 2026 financial outlook is defined by strength in principles: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical fiscal preparation. With these aspects aligning, the area is preparing for one of its most well balanced periods of expansion in recent years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to stay resistant in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its newest 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.

We expect GCC development will rise 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 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversity. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to outshine their international peers.

In December, the IMF further said 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 growth is expected to stay raised in the GCC region throughout 2026, as access to monetary services is anticipated to grow and loaning is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by reducing monetary policy even more, which in turn will decrease debt servicing expenses and improve non reusable income and demand," stated the report.