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Company news and financial news, analysis, viewpoint and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to exceed its 2025 efficiency regardless of muted oil incomes and continuous global uncertainties. According to a new Oxford Economics research rundown, GCC GDP development is expected to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and gradually improving oil output.
The latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic demand and a broadly consistent international background. The report highlights GCC customers as a major motorist of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are anticipated to fuel a rise in consumer spending across the Gulf.
Credit growth is likewise forecast to remain elevated as access to monetary services widens. With GCC main banks expected to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decline, offering homes and companies further incentive to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a blended picture.
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 global demand improves. Qatar, on the other hand, sticks out as a local outperformer, with considerable expansions in gas production and exports expected to lift its total financial efficiency.
Saudi Arabia's 2026 budget plan anticipates a 6 percent cut in capital expense as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts might not materialise totally if countercyclical spending procedures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.
Despite shortterm dangers tied to oil costs and worldwide need, the GCC's 2026 economic outlook is specified by strength in principles: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial planning. With these factors lining up, the region is getting ready for among its most balanced periods of growth recently anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council regional economies are expected to remain resistant in 2026, driven by strong domestic need and a broadly stable international economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real 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.
We anticipate GCC growth 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.
Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing development towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to exceed their global peers. Oxford Economics stated that low inflation has assisted protect growth in real disposable income, which has also been supported by strong need and extremely low joblessness rates."We do not envision any let-up, as federal governments continue to promote higher foreign direct 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 remain listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain elevated in the GCC region throughout 2026, as access to financial services is anticipated to grow and lending is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC central banks are expected to follow the US Federal Reserve by alleviating financial policy even more, which in turn will reduce financial obligation servicing expenses and boost disposable income and demand," said the report.
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