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Business news and monetary news, analysis, opinion and stats covering the six 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 accelerate in 2026, with the region projected to exceed its 2025 performance regardless of soft oil earnings and ongoing worldwide uncertainties. According to a brand-new Oxford Economics research study rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.

But the most current projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly consistent global backdrop. The report highlights GCC consumers as a significant driver of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to sustain a rise in consumer spending across the Gulf.

Credit development is likewise forecast to remain elevated as access to financial services broadens. With GCC main banks anticipated to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are most likely to decline, giving households and companies even more motivation to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a mixed picture.

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This might weigh on firsthalf development, especially for economies more depending on oil extraction. However, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and international demand enhances. Qatar, on the other hand, stands apart as a regional outperformer, with considerable expansions in gas production and exports anticipated to raise its overall economic efficiency.

Saudi Arabia's 2026 budget prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its fiscal deficit by two portion points. Nevertheless, the report notes that these cuts might not materialise totally if countercyclical costs measures are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm threats tied to oil prices and worldwide need, the GCC's 2026 financial outlook is defined by strength in fundamentals: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal planning. With these elements lining up, the region is preparing for among its most well balanced periods of growth recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to remain resistant in 2026, driven by strong domestic need and a broadly steady global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC area is expected to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

We expect 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 expanding 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 progress toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to exceed their worldwide peers.

In December, the IMF even more stated that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, close 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 expected to stay elevated in the GCC region during 2026, as access to monetary services is anticipated to grow and loaning is predicted to be supported by further 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 alleviating monetary policy further, which in turn will lower financial obligation maintenance expenses and boost disposable earnings and demand," said the report.